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@ Alejandro
2023-08-26 19:14:02
>"Don't sell your Bitcoin to Blackrock."
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> — Robin Seyr
*Welcome to the latest issue of the Bitcoin For Families newsletter. This issue is a reminder not to panic.*
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The price of Bitcoin has been down lately. It has spent the whole summer hovering around $29,000 USD and in mid August it suddenly dropped to $26,000, where it has stayed since.
**If you're panicking and selling Bitcoin because of this 10% drop, then shame on you.**
For reference, here is the price action for the whole year:
Does this look panicky to you?
## Institutions are coming for your Bitcoin
That's right. All those ETFs that the SEC is about to approve, because the SEC can't say no to Blackrock, will need to buy Bitcoin for their clients and they want to take it off your hands.
Institutions need to buy from exchanges and the amount of Bitcoin available on exchanges just reached a 5-years low according to Bitcoin Magazine...
...so where is it going to come from?
## The halving is coming
We're 83% percent into the current halving cycle. Sometime around April 2024, the Bitcoin network will halve the block reward for miners from 6.25 BTC per block to 3.125 BTC per block.
What can you expect based on past halvings?
The supply reduction causes a price increase, which creates more demand and higher prices. This positive feedback loop is triggered by the halving but takes some time to get started if there is enough people willing to sell to mitigate the reduction in new coins but eventually this positive feedback loop takes over and triggers a bull market.
After some time, the demand slows down, you see a pullback and the bear market starts. My take is that the time it takes for the slow down to begin depends on the maturity of Bitcoin and its understanding by the buyers.
So far bear markets have always bottomed higher than the previous, thus creating a volatile yet upward trend. But who knows, we might see something different in 2024. The chart below shows the Bitcoin price in USD and the halving events as red lines.
## Keep those hands steady and hodl
> Hodl. Stay cash flow positive so that you don't need to sell your sats.
Bitcoin is the most scarce asset in the world and soon it will become even more scarce.
**What do you think will happen?**
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# Notable notes
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# Recommendations
## Dylan LeClair
Dylan is a Senior Analyst at UTXO Management, a digital asset fund and he is as talented with his analysis as he is explaining it in simple ways.
You can follow him [here](nostr:npub1pyp9fqq60689ppds9ec3vghsm7s6s4grfya0y342g2hs3a0y6t0segc0qq).
## Bitcoin Breakdown
Bitcoin Breakdown gives you the TLDR summaries of the biggest events in Bitcoin. It's a very effective way to stay up to date with the industry.
Check it out [here](https://magic.beehiiv.com/v1/cf402cd8-b88e-4e7e-87f6-47474ac9807d?email={{email}}&recommendation_id=06f7cb37-d4ea-4464-be11-a485dbbd196a).
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## What did you think of today's newsletter?
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Please leave a comment and checkout comments from other subscribers and readers. I love hearing from the Bitcoin For Families community ❤️ 🙏🏻
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See you again next week!
— Alejandro
This newsletter is for educational purposes. It does not represent financial advice. Do your own research before buying Bitcoin.