The Economic Misjudgment: Why Economists Missed the Mark ?

In November 2022, a prevailing pessimism gripped the global economic community. Economists worldwide found themselves adopting a cautious stance, with many refraining from making investments. Even enthusiasts of cryptocurrency hesitated, holding out for more favorable prices, typically around $10,000. Some individuals did make purchases when prices hit rock bottom, although these transactions were relatively minor. These investors subsequently sold their holdings when prices surged to $25,000, feeling content with their profits. Others opted to reduce their exposure by selling half of their assets at a loss, retaining cash in anticipation of further market declines. The prevailing atmosphere of negativity was exacerbated by economists on social media and television, who consistently warned of potential catastrophes, such as impending global conflict and inflation concerns. Such messages attracted significant attention, particularly from individuals still reeling from the market crashes earlier in 2022.

Meanwhile, a quiet accumulation phase began as some astute investors recognized opportunities amidst the market turmoil. As liquidity dwindled and trading volumes remained low, the ability to execute significant transactions became increasingly challenging.

Towards the end of 2023, the market experienced an unexpected surge. Despite initial skepticism from some social media economists, who downplayed the significance of the rally, sentiments began to shift. With each subsequent price increase, the prevailing negativity diminished, giving way to a growing enthusiasm for investing in BTC. This momentum persisted, leading many to believe that the best investment opportunities had already passed.