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· Posted on
December 9, 2024

From meme to milestone: bitcoin reaches $100k USD in a major psychological win for crypto-heads

Bitcoin has broke through the $100,000 USD barrier for the first time in its history.

What's the key learning?

  • Successful investors zoom out, focus on long-term goals, and don’t let shiny milestones mess with their strategy.
  • When Tesla's stock price crossed the $1,000 mark for the first time, it created a frenzy among investors because it symbolised Tesla’s transition from a risky start-up to a serious player in the automotive and tech industries.
  • But in reality, it didn’t actually change the company.

👉 Background: Bitcoin was created by the man and still the myth Satoshi Nakamoto back in 2008. Since then, it has grown in popularity significantly. In fact, the number of Aussies that hold some form of cryptocurrency is around 20%.

👉 What happened: Over the past 15 years, bitcoin has gone through a number of incredibly volatile cycles. But, since Donald Trump was elected as the next President of the US, bitcoin has rallied by more than 45%.

👉 What else: Late last week, Bitcoin has broke through the $100,000 USD barrier for the first time in its history. And, while it doesn’t actually result in any fundamental shifts, it does have a psychological significance.

What's the key learning?

💡Investing is as much about mindset as it is about money. When it comes to investing, there are often psychological barriers around particular investments.

💡Round numbers like $100,000 feel monumental, so people behave differently.

  • Some investors panic and sell, worried it can’t go higher.
  • Others buy in, fearing they’ll miss the ride to the moon.

💡But the truth is that these barriers are just mental. The value of an asset doesn’t fundamentally change because it hits a round number - but it does sometimes give credibility to a market that has been doubted.

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