Let me start off by saying that I never bought into the whole bitcoin super cycle theory. It was always a little too "moon-boy"-ish for me.
The basic idea behind it was that now with institutional money coming in and countries adopting bitcoin and crypto, we would no longer see the 80%+ corrections and multi-year bear markets that have traditionally followed the 4 year bitcoin halving cycle. Blow-off tops and euphoria would only see minor corrections as we go up and to the right only.
It seems great in theory, and for anyone bullish on the space who wouldn't want that to happen? We are seeing non-stop adoption of bitcoin and web3 platforms across every major facet of life - banks, social media, celebrities, and sports franchises. It makes sense that at some point the cycle would break because bitcoin would no longer be in price discovery mode.
It was exactly that kind of thinking that I feel absolutely wrecked investors who bought the bitcoin top in early 2018 and didn't have the stomach to hold for another couple of years. It felt very euphoric to think that way, especially going into Q4 of 2021 with all of it's high expectations.
Well, as we see bitcoin drop once again, I'm actually starting to believe in the super cycle theory.
Although I do have one big caveat.
The basis of the theory resides in the idea that we will no longer see massive corrections. As I said before, that was too unreasonable for me. How am I balancing it out?
Because I wonder if we will no longer see any more blow-off top moments like we saw in 2013 and 2017 where euphoria reaches epic levels.
In this way, bitcoin loses a lot of it's cyclical volatility, while still remaining a highly volatile asset. We've seen open interest and high leverage get wiped out time and time again over the past year. For those playing whale games, it's easy money and there is no reason to think that it would stop anytime soon.
Now that doesn't mean I am not bullish on bitcoin and that it will never hit new all time highs. Quite the contrary in fact. I believe we will continue to see moves up and down as market will do what markets will do, but over time the hodlers who accumulate during consolidations will drive the supply low while demand will continue to rise as wider mainstream adoption is reached over the next few years.
I won't give any price targets or time frames because I think it's impossible, plus there are much smarter people than me using stock-to-flow and on-chain metrics that can provide those. This was more of just a public shower thought as I ponder what 2022 has in store for bitcoin and crypto.
Not financial advice.
Long term Bitcoin should be at least going up with inflation so would be an equivalent of real estate 2-3% per year :) But shorter / medium term once there is more bitcoin and crypto adoption we could see much higher returns.
I THINK WE CAN SEE CORRECTIONS OF 80/70% but following the uptrend and in 5 10 years be at 500 thousand dollars like ATH AND that we see 100 thousand dollars as a big correction😎
You have my vote
PIENSO QUE PODEMOS VER CORRECCIONES DEL 80/70% pero siguiendo la tendencia alcista y en 5 10 años estar en 500 mil dolares como ATH Y que veamos 100 mil dolares como una gran correccion😎
tienes mi voto
I'm long term bullish as well!
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Me too I am also of the mind that these markets become almost impossible to predict even if a person was privy to inside data.
You're absolutely right. All the YouTubers got it completely wrong and it's because everyone expects one thing so the market does the other.
It is so ridiculous because people are trying to treat crypto like regular common stocks and the two behave completely different it is like gauging new technology by learning about old tech. 👍
It's the only analogy many have but there are so many differences like you said.