Guys, how about taking the hopium out of the pipe. Im not saying BTC going to zero, cause it aint, as Ripple, Doge, XLM, ADA are still around with significant communities. So is Amway.
Im not even saying that it's not going up.
But the reality is that risk on assets, and especially crypto, received a historical record liquidity injection from stimy checks, SBA loans and Fed swap lines. And BTC could not even break $75k. It's just taking way too much economic mass to move it, a digital store of value whose selling proposition is Number Go Up, but now with 75% dips (maybe?) instead of 85%. It's just hard to ignore the reality that whoever is buying BTC even at $20k is kinda late to the party.
This assumption that Fed is about to turn the printing press right back on is just an assumption, aside from the fact that the Fed cannot & does not "print money". Stimy checks feel like they should come back as well, but really we don't know how long this asset deflation pressure will be kept on. There is actually plenty of liquidity sitting on the sidelines, but it's staying in low super safe assets, waiting for the riskier assets to crash.
I do also expect that the Fed will at least have to pivot their market sentiment tool of Fed Funds Rate. But Im not seeing signs that we will see another COVID stimulus of what we recently experienced. Regardless, Crypto will attract liquidity but this time around, actual results & metrics from the tech will be what the investors are looking for. User activity, user adoption, time spent, etc. Same metrics used for Web 2.0. BTC is dead in the water on that game, ETH is at the forefront along with other L1s.
