InvestorPlace Digest: Between Trump’s win on election day in November and Bitcoin’s high last week, the granddaddy crypto exploded 57%.

For perspective, if we annualize that gain, it comes in at just under 500%. That’s no longer a sustainable growth rate for Bitcoin given its near-$2T global market cap today.

Keep in mind, all of this is happening right around the psychologically significant level of $100K, which produces its own extraordinary gravity. When Bitcoin approached $100K on the way up, this psychological level lured more buyers into the market in anticipation of the milestone.

But once above it, Bitcoin was still influenced by the powerful psychological gravitas. Some traders took profits, resulting in small pullbacks, that scared weak-handed “me too” investors who then sold. Rinse/repeat and the gravity of $100K pulled prices lower, and then some.

Today, we’re seeing a course correct that’s par for the course for Bitcoin. Too much exuberance, too quickly, leads to froth that results in a profit-taking selloff. This transfers Bitcoin from weak hands to strong hands where we begin the cycle over again.

Bottom line: A 57% explosion that brings us to a massive psychological level requires time to digest. We need a pullback to regroup before a wave of renewed buying pressure can help Bitcoin achieve “escape velocity,” pushing it beyond the gravitational pull of $100K.

So, how long will it take?

No one knows. But I’d err on the side of patience and wouldn’t be frustrated if we move sideways for several weeks to a couple of months.

But let’s be clear about what this isn’t – the end of the Bitcoin bull run

Consider that Bitcoin has survived since 2009… experienced crashes of 94% (in 2011), 86% (in 2013), 84% (in 2017-2018), 50% (in 2020), 77% (in 2021-2022), and 40% (in 2023) …

Meanwhile, it’s now finally seeing a wave of institutional buying pressure… has countries using it as official fiat currency (El Salvador) … and has our president elect considering an official National Bitcoin Reserve…

And yet, the extreme bear case is that now, after finally hitting $100K, that’s when Bitcoin finally peaks and begins a slow slide toward $0 and irrelevance?

Unlikely.

It’s far more likely that we take a breather (perhaps a meaningful one) and then keep climbing.

It’s also far more likely that my friend from the gym will be lamenting not buying at $94K come mid-2025.