Not solely Bitcoin related but a nice year end wrap up on crypto from Arcane Research...
https://www.research.arcane.no/blog/week51
https://www.research.arcane.no/blog/week51
Bitcoin Price Thread
- Thread starter Magna
- Start date
Happy new years everyone! These are very exciting times to be trading in the crypto space. Looking forward to 22!
One man's retirement plan. This is for you @SimpleMeLike
https://er-bybitcoin.com/stacking-em-volume-18-january-2021/
https://er-bybitcoin.com/stacking-em-volume-18-january-2021/
The start of the bear market in 2018 was partly attributed to tax selling
Many who made a lot of money in 2017 ico boom and alt season had huge tax bills that were due in 2018
I already sold and have the cash for taxes so I was not thinking about this but saw a tweet from someone that people are selling in order to pay taxes
Some huge profits last year, so the taxes are very high, too
One good thing about this cycle is that there's still a lot of buying whereas in 2018 when the price action turned weak, new money inflows to the cryptos started drying up. Many were only interested in NGU
There's much more stuff going on in this cycle with DeFi, crypto gaming, NFT's, multi-chain L1 ecosystems and institutional and nation state adoption
Anyway, I start the post with a possibility of a bear market but end it with a positive argument against a bear market. Just thinking out loud...
Many who made a lot of money in 2017 ico boom and alt season had huge tax bills that were due in 2018
I already sold and have the cash for taxes so I was not thinking about this but saw a tweet from someone that people are selling in order to pay taxes
Some huge profits last year, so the taxes are very high, too
One good thing about this cycle is that there's still a lot of buying whereas in 2018 when the price action turned weak, new money inflows to the cryptos started drying up. Many were only interested in NGU
There's much more stuff going on in this cycle with DeFi, crypto gaming, NFT's, multi-chain L1 ecosystems and institutional and nation state adoption
Anyway, I start the post with a possibility of a bear market but end it with a positive argument against a bear market. Just thinking out loud...
If there is actual institutional support for BTC and other coins then its logical to assume the cycles should be smoothed out. The only issue is still the spot price ETFs which would reduce all this volatility but it still hasn't come to pass. My guess is there would need to be some regulations before the SEC would allow it. The key issue is still the custodian issue.
It is obvious from the trading of BTC & ETH that it is currently just another Risk ON asset like the high growth but no earnings cloud/software stocks. Interesting that Ethereum held on longer than Bitcoin initially but now it goes down 2-3 times as fast as Bitcoin. I think BTC is still the "Gold Standard" of the crypto world.
It is obvious from the trading of BTC & ETH that it is currently just another Risk ON asset like the high growth but no earnings cloud/software stocks. Interesting that Ethereum held on longer than Bitcoin initially but now it goes down 2-3 times as fast as Bitcoin. I think BTC is still the "Gold Standard" of the crypto world.
Of course it is, because it is the one coin name that is constantly mentioned when it comes to cryptos in the media, and thus sticks in the collective consciousness of the public-at-large.
It's the same way how when you say "precious metal", everyone's head will default to the thought of gold. They never think of metals like platinum, or metals they have never heard of, like palladium.