Last week was perhaps the most negative week for sentiment I’ve seen in a long time. Fear is palpable in the crypto market, with the ‘Fear & Greed Index’ at levels not seen since the Luna crash. But as an investor, you know that when the crowd is in panic, opportunities are ripe for the taking. In my latest video, I explain why this fear is unjustified and why we are on the eve of a major move.
The Unjustified Panic Around Strategy #
A large part of the negativity is focused on Strategy. Critics are claiming the company will go bankrupt, but the data tells a very different story. The current market value of Strategy is even lower than the value of the bitcoin it holds.
The market is currently pricing in an enormous risk that simply isn’t there; the company has a runway of decades. This kind of imbalance often signals a bottom.
The 4-Year Cycle Is a Thing of the Past #
Many investors are still fixated on the classic 4-year cycle, but I believe that time is over. Bitcoin is becoming a mature asset. We need to stop thinking in fixed calendar patterns and look at what really moves the market: macroeconomics.
Liquidity Is Returning to the System #
The most important driver for the coming weeks is the Federal Reserve. Without much fanfare, we see the Fed pumping liquidity back into the market via ‘overnight repos’—the largest injection since COVID. This is essentially money creation to keep the economy running, partly due to pressure from rising Japanese interest rates.
When you add to that the Nasdaq reaching new highs and gold already having made a massive run, it’s only a matter of time before this capital trickles into crypto. Bitcoin is already showing resilience, and once we break through the crucial resistance, the path to $100,000 is open. Don’t be led by today’s fear; the macro signals are green.
Of course, I go into these topics in more depth in my new video. You can find the video below!