Why the Bitcoin Crash Sets Up Next Bullish Move

Why Bitcoin Crashed… Some People Are Saying “IT’S AT THE TOP!” Nonsense; Here’s Why:

The recent pullback in Bitcoin and Crypto markets did not occur in a vacuum. The global markets collectively experienced a major shake-up this week. Moreover, the key data signals that would outline a cycle top are yet to flash.

BTC and crypto markets are still tied to the risk-on-asset narrative and can regularly be seen as the first to respond to speculative uncertainty in the markets. Why is this?

Bitcoin is a 24/7 liquid market and therefore is not bound by the restrictive and now arbitrary boundaries of the 9-5 trading day.

Considering that global liquidity has reached new all-time highs, one has to wonder what is underlying this broader global market decline. Is the BULL over? Or is this a pause on the way higher?

Some will argue that the Japanese yen’s carry trade is in retreat, while others will argue that a major correction is long overdue. We see the BOJ capitulating, and this is reflected in the recent recovery of the TradFi market. But the markets are also deciphering a confusing mix: escalating global conflict, an election year, the prospect of an upcoming interest rate cut, and exponential growth in demand for Bitcoin.

The point is that markets have been resiliently reaching new highs over the last 24 months and a pullback to test support was expected. I believe this was just that, not a sign that a larger near-term crash was imminent.

Thinking About Bitcoin: Fundamental developments over the last 12 months have only strengthened the bullish case for the future

In any investment thesis, it is important to ask how we can leverage what the demand to supply ratio is and how this affects the price.

The answer here is:
Bitcoin is arguably the most asymmetric REWARD/RISK opportunity of a generation. It is outpacing the adoption rate seen by the internet in the 1990s, new capital channels are opening up to Bitcoin, adoption is exploding and demand is increasing, and recent regulatory clarity has only increased integrations by individuals, institutional entities and government investment strategies.

This pullback was not a crash by any measure. This is one of the last opportunities we will see for Bitcoin at these price levels.

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