We are entering the final phase of the bear market. Those that can flip the switch emotionally will look at this opportunity and load the boat.
I’m sure many have seen the cycles chart but those who survive and wait out the next 12-18 months deserve the glory of the bull market. In this chart we are past the panic stage and now heading into anger. Good news is now is the opportunity of a lifetime to plan positions and scale in the next year.
For those who missed 2014, 2018 and the black swan event of 2020 March - don’t make an excuse this time, the train is coming back to the station. I was around in 2014 when the sentiment was 10x worse - if bitcoin can survive that it will succeed.
2023 will go down as one of the best years to historically buy crypto and assets. We went from an extreme case of Quantitative Easing (money printer going brrrr) to Quantitative tightening. These affects usually take 12-24 months to filter through the system.
Unfortunately the economy isn’t doing well and likely to continue into 2023. We’re not heading for a soft landing - neither is inflation going to the target 2%. The fed is determined to get there - however the many signs point to peak inflation being 9.1% in June 2022 and likely by June 2024 we will be at 3-4% inflation
There are three stages of the fed pivot that we are seeing signs of entering :
Stage 1 - Slow down of the interest rate hike
Stage 2 - Pausing if the interest hikes
Stage 3 - Reversal of interest rates
Historically unemployment in QT and recessions have hit 5.5-7% and we are currently at 3.7% - we have a long way to go. We started seeing mass layoffs in tech and that will happen for the wider economy. Businesses and consumers are tightening their wallets and this will continue to have an impact
The market tends to bottom before the reversal of interest rates - which will likely come after the second half of 2023 at this pace
Crypto truly is following its past cycles like a book. This cycle corresponds damn almost perfect to the 2024 halving.
The worst thing you can do is leave the bear market and not build positions, you owe it to yourself to stay disciplined and at the very least do nothing. No one can time the bottom however these prices will be deemed “lucky” by those who join in 2025+
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