🚨 WHY IS BITCOIN DOWN -30% FROM ITS PEAK WHILE GOLD AND SILVER ARE GOING PARABOLIC?
Because Gold and Silver tops first, then Bitcoin starts its rally.
Here is what happened last time 👇
After the March 2020 crash, the Fed injected massive liquidity into the system. The first assets to react were gold and silver.
- Gold rallied from around $1,450 to $2,075 by August 2020.
- Silver rallied from around $12 to $29 in the same period.
During this entire move, Bitcoin did almost nothing. BTC stayed stuck around $9,000-$12,000 for 5 months.
This was also after a major liquidation event which happened in March 2020 due to COVID.
Gold and silver peaked in August 2020 and money started rotating into risk assets.
This is when Bitcoin started moving.
From August 2020 to May 2021:
- Bitcoin went from $12,000 to $64,800 (nearly 5.5x).
- Total crypto market cap went up almost 8x by mid-2021.
Now look at today.
- Gold is again near record highs, around $4,550.
- Silver has surged to around $80.
Both are clearly moving first.
Bitcoin meanwhile is mostly moving sideways. Just like it was in mid-2020.
We also had another large liquidation event recently on October 10th, similar to March 2020. And once again, Bitcoin has spent months moving slowly after that.
The difference this time is important.
In 2020, liquidity from the Fed was the main catalyst.
In 2026, there are multiple catalysts lining up at the same time:
- The Fed has already started injecting liquidity again.
- Rate cuts are expected to continue.
- Banks may get SLR exemptions, allowing more leverage.
- Crypto regulation clarity is improving.
- The Trump administration is planning for dividend cheques.
- More spot crypto ETFs, especially altcoin ETFs, are expected.
- Large asset managers now have easy crypto access.
- A new Pro Crypto Fed Chair is coming, and markets will front-run policy changes.
Last cycle, Bitcoin rallied mainly because of liquidity. This time, liquidity plus structure is coming together.
The setup looks very similar, but with more fuel. Gold and silver moving first is not bearish for crypto.
Historically, it has been the early signal.
If this pattern repeats, Bitcoin and crypto markets do not lead first. They move after the metals pause.
That is why the current sideways action in BTC is not the start of the bear market, but rather a calm before the storm.
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Smitty's Bitcoin Retirement Guide: e-Book Edition 📙
*Only here on X*
The wait is finally over - you're going to want to bookmark this.
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🧵Thread👇
Without detailing the exact instructions on how to use the guide, this time around, I will explain the important changes - and from there, please engage, share, and enjoy!
1) Updated Model: This is a critical solution, and I'll explain why. Rather than using the median (50th quantile) power regression model, as was used in previous versions, Smitty's e-Book uses the 5th quantile. Why? Statistically, theoretically, this ensures that 95% of the time the desired annual withdrawal rate (living/spending costs) will not need to be down-adjusted due to volatility - because by definition, only 5% of the price falls below this 'support' line (see my other models). Therefore, you should only expect to need to down-adjust roughly once in 20 years. This makes this e-Book version more conservative, while maintaining realism and (clearly) attainability of stacking targets (see the various pages).
2) e-Book Format: I'm only posting these to X for now; but since in the past there has been so much positive engagement, I wanted to keep the overall 'brand' while enhancing the stylings so that it feels like an easy mini reader for folks comparing spending/stacking scenarios for retirement. It is also high DPI, now with nice borders, headers/footers and even page numbers. Feel free to print out and make a physical copy, or choose your favorite scenario, laminate and post on the wall.
3) Table addition: I've been meaning to include this change for a while. Not all of us are graphic/visually inclined, and indeed many of us are table/spreadsheet inclined. Therefore, below the graphs, I added easy-to-read look-up tables which exactly map to the Retirement Years and Current Age from the graphs, along with exact color-matching according to Current Age. No more needing to follow lines and line intersections; should also help for the visually impaired.
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As always, the key assumptions in the guide to remember:
1*Assumed 7% annual inflation rate going forward (not easy to predict but historical expansion has been pretty close to this).
2*Taxes not accounted for - tax policy is too variable and too liable to change in any given year - please do your own homework for your own situation.
3*You're living to 100 (or at least planning your conservative BTC spend-down plan out to that age).
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So, as always, flip through the replies in this thread, and enjoy the new tool!
"Helping you develop a better Bitcoin stacking target for life planning." - Sminston With
#notfinancialadvice
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🇦🇪 DUBAI IS BUILDING A GIANT NERD TOWER FOR CRYPTO
By 2027, Dubai’s getting a 17-story tech palace with AI labs, crypto clubs, and no boring paperwork.
Every inch is NFT-linked and leased with smart contracts - fast, digital, and no middlemen.
The tower is set to create 2,500 jobs and pump $1.5 billion into Dubai’s economy.
Source: Business Bulls