Liquidity is incentive driven.. which means it moves reactively
"Where can I get the most upside for the least risk?"
At different stages of a cycle, that answer changes..
๐ก Early cycle = Safety
โช๏ธ Mid cycle = Efficiency
๐ข Late cycle = Speculation
Once returns compress at the top, which right now is Gold and Silver.. capital must move lower to maintain return potential
Its not like investors suddenly become dumb and reckless.. but because the risk stays the same while the upside begins to shrink
This forces capital to look elsewhere, which naturally moves to smaller market cap assets..
Where the same liquidity produces larger price movements
Gold > Silver > #Bitcoin > $ETH + large caps > Mid caps > smaller caps > Memes + dumb shit
The compression in returns forces capital to seek efficiency.. its not because people want more risk
Which means narratives begin to form after the liquidity moves
๐ก "Gold is pumping because people lost faith in fiat"
โช๏ธ "Silver is pumping because of global supply shortage"
๐ "Bitcoin is pumping because its a better version of gold"
And so on..
Its just recycled liquidity.. which flows and creates different narratives
Capital enters Gold > Leaves Gold
Enters silver > leaves silver
Enters Bitcoin > leaves bitcoin
Enters Altcoins > leaves altcoins
Each step brings larger returns as the same capital and liquidity is being pushed further out on the risk curve into more illiquid assets
Imagine a massive pot at the top of a structure..
Below the largest container sits medium ones.. below those are even smaller ones.. and at the bottom are the smallest containers
When that huge pot begins to overflow, it doesn't take much for the containers below to start spilling
Each level down requires less and less water for it to overflow
The water's not increased.. its just the containers have simply gotten smaller
And thatโs why the biggest moves always happen at the end of the cycle
The liquidity flows downstream into thinner, more illiquid assets.. that causes violent movements from relatively modest inflows
We're currently in the first steps of this cycle..
Enjoy ๐ป
@PeterSchiff Complaining about Bitcoinโs energy cost is just admitting you preferred scarcity when it was hard to audit and easy to control.
The genie is out of the bottle, Professor Pete! Gold canโt compete with the APEX ASSET.
Bitcoin will have its moment in the spotlight.
Your patience will be rewarded.
Long-term conviction is key.
While Bitcoin has underperformed relative to gold and silver, a mean reversion is likely in the relatively near term.
@PeterSchiff I thought you were smarter, today it's precious metals, next month it'll be bitcoin and altcoins, the downside of gold and silver is that they're boring, people need action and excitement so they'll always go to crypto and bitcoin, but you're too old to understand that
@anndylian It will come when you least expect it, it will come like a bolt from the blue sky, It indicates that bitcoin will be below 100,000โฌ , Mark my wow
@anndylian The problem is that everyone tries to find it quickly, then people get into trouble, a good meme coin will appear when the right time comes and it will. You have to be patient, this is how people become rich
Gold closed the gap with Global M2.
Can BTC?
If anything, I'd expect Bitcoin to outpace gold-- not just keep up with it.
An interesting couple of months could lie ahead...
It's crazy but the path on this chart is STILL valid.
I fully expect it to play out the rest of the way.
Target is $140k-$150k once megaphone is breached to the upside.
We're just getting some people selling at ATHs at usual, trying to break even and whatnot. I even called this move on the chart.
Brace for the steepest leg of the bull run once we decisively make new ATHs. The next move up likely will blast off and not wait around any more.
This will be where reality hits bears and many FOMO back into Bitcoin, realizing the bull run wasn't actually over yet.
The steepest and most violent leg is coming up.
Learn more in my most recent video, if you haven't watched it already: https://t.co/rTreNnMKn7
$BTC
I don't belive this is accurate (way too high).
I also don't think it matters.
What matters is how many people we can help, and by how much.
Make a world a little bit better than before I arrived.
The worst thing to do is try an trade right now. You will not outsmart the market.
Just lock in, hold with conviction. As prices soar be prepared for crazy volatility.
ETH is going to break ATHs very soon.
A major alt season awaits.