#### Bitcoin has left behind the strongest 30-day period since December 2020. What can we learn from it?

![image.png](https://images.hive.blog/DQmac3CDzivmQjLzuX5KAe7Y5qcuaWVaBiW9tbGhFVnqWaZ/image.png)

We are a little over halfway through the crypto year 2021, and we can already state that we will remember this year for a long time. Especially if you are into crypto! Bitcoin was among the currencies hardest hit in May. The bottom was reached on July 21, when Bitcoin had fallen approx. 50% from the peak in mid-April. But since July 21, the rise has been exceptionally rapid. At the time of writing, Bitcoin has left behind the best 30-day period since December 2020. Bitcoin is up around 35% during this period.

The rise is nevertheless a clear illustration of why, we as small savers should "sit still in the boat" when Bitcoin crashes. And the explanation for this comes here; First, as a small saver, one probably discovers the downturn too late. The risk of selling at the bottom is high. Likewise, it is difficult for small savers to know when they should buy Bitcoin again. They thus risk buying it after the upswing ...

I can tell, the experts are also struggling with this - the art of timing the market. It is basically an impossible task, and the large professional fund managers - for example the Norwegian Oil fund are therefore content to follow a fixed plan where the share of money in the stock market should not amount to more than 70% of the fund. If the value of the shares rises above 70% of the fund's total value, parts of the fund are transferred to bonds. And vice versa if the values of the bonds exceed 30% of the total value of the portfolio.

If you save your money in cryptocurrency, you can also follow such a plan, but you have probably already spread the risk in the economy quite well already. The vast majority of us have far more money in the housing market than in the crypto market. Many of us also have "moooonitas" in the bond market through pension savings. In addition to this, a lot of money are still in the bank ...

The latter alternative has been very unattractive for the last 10 years. And the crisis (covid19) cuts in interest rates worldwide have not made bank savings a better alternative. On the contrary interest rates are now hoovering around zero. On the other hand, this has led more money into the stock- and crypto markets. Once again, investors are forced or tempted to the stock- and crypto exchanges to get returns. This mechanism is not unproblematic. When our time is to be examined by historians, the development of the world with interest rates around zero will probably be an essential part of their studies. Then, in the name of hindsight, they can point to what we should possibly have done differently.

In the meantime, we must deal with the realities of the markets. There is still a long way to go before Bitcoin and other cryptocurrencies have recovered all they lost, but the downturn and the upturn are a good reminder that the market is unpredictable in the short term. Therefore, avoid buying crypto for money you need for other investments (house, car, boat, a cabin or other things) in the short- or medium term. If you are saving for the long term, there is **NOTHING** that beats the crypto market!

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Cheers
-Olebulls

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