Thread by @0xStacker

What happens next? $ETH happens next. 👇

Everyone who maintains any constant crypto exposure is down bad right now.

These brutal crashes have happened in the past and they will happen again.

Some have escaped less scathed than others, but almost no one has been immune to the recent downturn.

Crypto funds’ core holdings are down.

Retails is down.

Exchanges are hurting.

Coinbase’s stock price has plummeted.

You are not the only one hurting.

We’re in this together and #WAGBO .

But it’s gonna take some work.

There are two types of people in crypto. T

he people who have exited stage left and won’t be back until crypto recovers, and the people who licking their chops and willing to bust their asses to rebuild.

There is a strong INCENTIVE to rebuild.

If you understand market participants’ incentives, you can predict their actions.

So we know people want to rebuild, but how will they go about doing it?

I believe the logical answer is $ETH.

And we’re already seeing it in the numbers.

Historically, in large crashes we see people de-risk from alts to $BTC, and as a result $BTC dominance goes up, while altcoin dominance drops significantly.

This latest crash is no exception.

This time, however, we’re seeing $ETH dominance hold up very well.

Since shedding 40% in total crypto market cap, $ETH dominance has remained unchanged at roughly 19% while $BTC dominance has risen from 41% to 45%.

Historically, $ETH dominance drops by at least 20% in these big crashes, with the only exception being the Jan 2018 blow off top ($ETH peaking slightly after $BTC peaked).

This latest bull market proved $ETH’s utility.

It has much more utility now than it did going into the 2018-2019 bear market.

You know it. I know it. Smart money knows it.

Smart money wallets on nansen.ai are already accumulating and consolidating into $ETH, with >$500M $ETH accumulated int he last 7 days.

If you've been dumping your $ETH at these prices, this table should concern you.

They now have a 65% allocation to $ETH, and have even dumped some $WBTC to buy $ETH.

I believe in addition to $BTC, $ETH will be a cornerstone around which people rebuild their portfolios in the coming months. Why?

The market's mindset has shifted to see it as a lower beta large cap like $BTC AND it has the next big catalyst event in crypto, a catalyst event that could be the biggest the market has ever seen.

The $ETH merge is the next big opportunity in crypto and as it draws closer and closer people will flock to it, looking to make back what they’ve lost.

It’s all the influencers on YouTube and Twitter will be talking about for weeks leading up to it.

But right now, with all the fear - no one is talking about it.

Most are underestimating the $ETH merge and not preparing for it accordingly.

In fact, I think a lot of retail investors ignorant to what the $ETH merge actually entails.

Is the bottom in for $ETH as of now? Maybe.

Maybe Not.

Maybe they take it down to $1400.

I don’t care.

I will continue to buy pre-merge.

Bear markets are where you make money.

If you screwed up during the bull market by not taking profits or gambling on low caps and NFTs, this is your chance to NOT screw up during the bear market.

I’m going to follow this thread up with another later today explaining the $ETH merge and why specifically I am so absurdly bullish on $ETH.

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