Rich Bitcoin HODLer vs Poor Bitcoin Trader

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The price of Bitcoin has experienced high volatility up and down in a few hours

While the Bitcoin price was consolidating after beating an ATH the day before, the inflation figures for October 2021 in America are released. They are worse than expected. Inflation reaches 6.2% in America ... the first time since 1990.

Investors flock to Bitcoin, which is rightly seen as a hedge against inflation. The price of Bitcoin soars within minutes from $2.5K to a new ATH near $69K. The price of Bitcoin then remained at this level for a few hours before a rumor from China completely changed the psychology of the market.

Several media outlets reported that Evergrande would default on a debt payment, which would lead the Chinese real estate giant into bankruptcy. The market goes wild and more than $700 million in long Bitcoin positions are liquidated within minutes.

The price of Bitcoin collapses by nearly $7K from the $69K area to a low of $62.1K. A substantial -10% drop in the price of Bitcoin on a single FUD rumor. There's a reason I keep telling you that you need to apply 6 rules to beat FUD if you want to take full advantage of Bitcoin.

After some research, it turns out that Evergrande will not default on this payment. No immediate bankruptcy for Evergrande, nor potential contagion to the entire Chinese real estate market. Investors are coming to their senses and the price of Bitcoin is rebounding above $65K. This is the current price of Bitcoin as I write this article.

Nonetheless, market sentiment shifted in a matter of moments from extreme euphoria to extreme fear on a single FUD rumor. It's pretty incredible, but that's how things work in a free market like Bitcoin. Volatility is part of the game. It's a feature, not a bug.

Traders risk losing money with these market movements, while HODL Bitcoin protects you from this inherent volatility of Bitcoin

Aspiring traders must have lost a lot of money in those few hours on November 10, 2021. First by rushing to buy Bitcoin when the Fed figures came out, and then by selling at a loss when the price of Bitcoin started to fall rapidly due to the liquidation of long positions. So they probably sold at a loss for fear of losing money.

And then they had to watch in amazement as the price of Bitcoin rebounded. And I can already tell you that this rebound is just the beginning. The fundamentals of Bitcoin have not moved, and the $75K-$80K area remains as relevant as ever for the end of November 2021.

All Bitcoin HODLers have been able to look back on this and remain calm. That's the whole point of taking a long-term view with Bitcoin. Volatility doesn't affect you. You may not even experience it, because on larger timeframes it will be very quiet. This is the best way to appreciate this incredible monetary revolution.

It's the one I recommend for the simple reason that over 99% of the people who follow this strategy are in profit with Bitcoin. So there's no need to make it difficult for yourself by looking for complex strategies. Bitcoin is a technology that should allow you to take back the power over your money.

To profit from Bitcoin, you simply need to believe in the system and be patient. As you can see, your time in this market will be a natural advantage. It's up to you to make full use of it.

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