December — Crypto: Bulls vs Bears
Bitcoin has corrected -30% from all time high 69k (10.11.2021) to 48k (6.12.2021). I personally still remain still quite optimistic even though the real world economy looks extremely sketchy.
Why the dip?
- Evergrande, Covid omicron, everybody selling (Musk Tesla stock etc), shit jobs report, fear of FED tapering. DEFI hacks everyday (badgerdao), bitmart also hacked…
Why to be bullish?
- Leverage flushed out… Hopes of institutional money pouring in… What else to be bullish than Bitcoin? Its literally one of the only things that makes sense now. On-chain and technical metrics looks still healthy. Why did you invest to crypto in the first place? Has the fundamentals changed?
Now we are being spooked by the omicron variant, more lockdowns, more covid shots… So fun to get 3rd and 4rd shot. Im by no means antivax etc but this doesn’t make any sense. How is the vaccine successful, death rate goes from 0,03 to 0,02? Here in Finland 60ppl under age 70 have died to covid and median age is 82, are these actions overblown? I don’t know. Im not doctor I just try to navigate as winner through this shit. This means we can be sure that the clown timeline will continue at least the winter months. Stonks go up BTC goes up. I personally converted all my cash to BTC (only spot cash, still holding plenty of dry powder) during the dip and I didn’t sell any altcoins.
Everybody in crypto wants to hear only good news (look at all the influencers and their growth). I had like 5 twitter followers and now close to 1k. The dance of fear and greed. If you were scared during the dip you are either over leveraged/too big position in crypto/you are looking for get rich fast button. Position yourself accordingly and enjoy the ride. This was just small leveraged shakeout.
I am still quite confident that big market crash is coming, real world economy looks extremely sick. Its so easy to scream that the big crash is coming and at the moment many are screaming it, its getting quite annoying. Keep your dancing shoes on, now I’m short term bullish.
Anyways I am still thinking this is completely new cycle and it will last longer. Pick the winners and bet them. Remember this crypto market is similar to early 2000 internet stock boom, please take a look how ridiculous valuations some vapourware companies got (95% in crypto are total shit and vapourware). They will definitely get the crypto winter treatment. Same might happen to NFT-market. The supply is never-ending and the “value” is, only a hope that somebody will buy it higher in the future… How that will end up? Keep learning and don’t give up!
Sources: https://www.youtube.com/channel/UClgJyzwGs-GyaNxUHcLZrkg
