Mental Shift after Breaking $20k. Bitcoin Tech Talk #219

We broke past $20,000 this week and everyone is celebrating! Not only did we get to an all-time high, but we raced past $24,000, which even a few years ago seemed very far off. The fact that we passed through $21k, $22k and $23k without so much as a bathroom break points to the fact that those numbers didn’t have the psychological significance that $20,000 has. In other words, we have had a relatively easy time of it since $20k broke.

This is not very different than previous all-time highs when breaking the previous all-time high from more than 6 months ago would trigger a nice bull run. Usually, each one was marked by an order of magnitude increase, topping out at a then-crazy valuation. What’s different this time is that there’s expectation. Perhaps it’s due to planB’s s2f/s2fx model, but whatever the reason, the market is expecting the crazy valuations instead of thinking that things are overheated. $100 BTC looked crazy in 2012. $1000 BTC looked crazy for most of 2013. $10000 BTC looked crazy in 2016. $100,000 BTC just doesn’t seem that crazy in 2020.