TechPostsFromX on Nostr: Previous Bitcoin Bullruns have been driven by short term investing, this causes them ...
Previous Bitcoin Bullruns have been driven by short term investing, this causes them to crash ultimately.
This bull run is different and is being driven by two things:
1) short term investing
2) store of wealth
This time Bitcoin is actually being used as a store of wealth. That was not the case in the previous bull runs so trying to extrapolate will fail. This bullrun will not crash in the same manner as previous bullruns (or in the same magnitude).
This bullrun is being powered by both retail and institutional. All the previous bullruns were just retail.
Extrapolation will fail.
Much of the buying this time around is now genuine store of wealth. Bitcoin is actually being used for that in a mainstream way for the first time in Bitcoin history this cycle. 401(k)s are parking long term investments via the ETF. Additionally, nation states and sovereign wealth funds are filling reserves.
Also, actual news is justifying the value this time around, rather than pure hype and speculation. The US BITCOIN RESERVE is starting to look probable, this is pricing in a massive value increase which is different than bullruns powered by FOMO — this is smart money trying to arbitrage by front running the US. It’s very likely going to be majority priced in by other countries’ sovereign wealth funds getting in early.
If you try to time this market just using analogy to previous bullrun markers and milestones, you’re going to get crushed.
Source: x.com/Valuable/status/1858427926657814690
This bull run is different and is being driven by two things:
1) short term investing
2) store of wealth
This time Bitcoin is actually being used as a store of wealth. That was not the case in the previous bull runs so trying to extrapolate will fail. This bullrun will not crash in the same manner as previous bullruns (or in the same magnitude).
This bullrun is being powered by both retail and institutional. All the previous bullruns were just retail.
Extrapolation will fail.
Much of the buying this time around is now genuine store of wealth. Bitcoin is actually being used for that in a mainstream way for the first time in Bitcoin history this cycle. 401(k)s are parking long term investments via the ETF. Additionally, nation states and sovereign wealth funds are filling reserves.
Also, actual news is justifying the value this time around, rather than pure hype and speculation. The US BITCOIN RESERVE is starting to look probable, this is pricing in a massive value increase which is different than bullruns powered by FOMO — this is smart money trying to arbitrage by front running the US. It’s very likely going to be majority priced in by other countries’ sovereign wealth funds getting in early.
If you try to time this market just using analogy to previous bullrun markers and milestones, you’re going to get crushed.
Source: x.com/Valuable/status/1858427926657814690