, 7 tweets, 2 min read Read on Twitter
Here's the cycle:

$BTC rallies hard, majority of "alts" drop as BTC is the main liquidity provider to #crypto (right now) and no one wants to sell BTC.

Value of "alts" in *BTC terms* then drops until whales choose to cycle into "alts." Then...
2/ Whales cycle from $BTC into the "alts" that're depressed (pick your alt).

Those "alts" rally harder than BTC did because they are higher risk, gaining in *BTC terms.*

The whales can then cash their "alts" out for more BTC than they started with. And so they "make BTC" :-)
3/ BTC is the market beta of #crypto.

Every other #cryptoasset is higher beta than it, meaning it'll move more to the downside (when people are panicking) and also more to the upside (when people are ebullient).
4/ It's amazing to have $BTC as the price setter of what's possible for a "protocol" in crypto.
5/ Though the market will eventually have to learn not all protocols should be valued using the same mechanisms.

The right calcs and therefore comparisons will depend on the value capture pathway of the native cryptoasset: static1.squarespace.com/static/5a479ee…
6/ Just as I wouldn't compare $NFLX to $IBM as an equities analyst, in a discerning future you won't compare $ETH PoS to $BTC PoW.
7/ Returning to the original mini $BTC <--> "alt" cycles, expect more of these in the bull market to come (still highly speculative market).

Over long term, expect them to fade away as liquidity broadens beyond BTC, market gets more discerning, shorting matures, etc etc.
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