2022 was tough! #Stocks & #Crpytos were in a bear market and we entered a #Recession (=negative Growth of GDP in 2 consecutive Quarters)
What does all this mean for #Bitcoin and $SPX #SP500 and how is the outlook for 2023
Take a look at this Mini-Thread 🧵
First, we want to take a look at the most recent recession before: The Great Recession 2008/2009 that followed the financial crisis of 2007.
The $SPX bear market began in Q4 2007 - the first real selloff happened in Q3 '08 - This was also the first quarter GDP declined. The turning point and final bottom was reached in Q1 '09 when GDP turned positive again and the recession was over.
$BTC didn't exist back then
Current Recession: GDP negative growth happened in Q1 and Q2 '22, whereas Q3 had a growth of +2.9%. Estimates for Q4 are +1.4% - +1.6%
While $SPX had a max. drawdown of -27%, $BTC declined -77%. For btc the FTX crash was an aggravating factor.
What is the outlook: The economy is now being driven by several factors: high inflation and the associated interest rates. these will continue to tighten in 2023. This in turn will have a negative impact on the overall economy and GDP.
Conclusion:
Despite all this, we saw GDP growth continue for the last 2 quarters in a row. The following quarters will be crucial for cryptos and stocks. The downtrend period is not over yet, but 2 consecutive positive GDP quarters are a first step for an end of the bear market.
Music by Stockmoney Lizards 🎶
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BTC is about to go nuts big time soon. Many are still in doubt and even more think we might have already seen the top.
Here's a mini-thread about why we believe the contrary is the case and that we will see a massive run in late Q3 / early Q4 this year.
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Besides the mere pattern that we now see, there is a strong logic behind the fact that the charts from the past 3 cycles are so similar.
1. Halving: Halving is a sell-the-news event, retail is expecting the big run, whales that have been accumulating start to distribute 2. Post-halving correction and redistribution: Retail adresses have bought the top and start to sell for a loss, while smart money is rebuying. You can see this when looking at these strong support levels in each of the cycles (in this case 53 - 56k)
2/3
What we describe as "short-squeeze zone" is the fact that a lot of liquidations are about to happen in this area. This will reverse many positions, induce a chartreak and turn bearish breakout traders bullish.
Important: Usually these events are preceded by a fakeout and subsequent drop before the actual rally starts.
There is an overwhelming number of #Altcoins in this cycle!
Not every coin will pump with so many new coins and scams flooding the market. A lot of advice isn't useful ("Buy AI. Buy RWA").
5 Trends of the current cycle - A 🧵
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Before we start, some basics:
One reason why many coins haven't really pumped while others reached new ATHs is the fact that the money in the markets is flowing into a much higher number of cryptos than some years ago.
This makes it harder to get the big pumps right.
TREND 1: Age
We see that a lot of newer coins (ICO 2022 or newer) are amongst the massive winners.
INJ, SUI, RNDR, FET have outperformed older coins like MATIC, ATOM or LINK
Halving is done and yet, Bitcoin continues printing red candles. Is this it for this cycle?
A lot of folks are insecure, especially in light of the geopolitical and macroeconomic situation
Let's take a look at some charts and indicators.
A 🧵
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The short answer at the beginning: no, we are not at the end of the bull market.
We believe what we see is a correction which could send us back to the 50ks.
Call it triple top, call it wyckoff distribution. Bitcoin is in correction mode, but...
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... we still believe that this is temporary. In a thread on 2 April, we wrote "double top, decreasing RSI, no bullish divergence in sight. ➡️More downside"
This has been true and so far, BTC stays in this corrective channel
10 facts you need to know about the #Bitcoin ETF hype.
This is not a thread🧵by Stockmoney Lizards🦎
1⃣ What are ETF´s
An Exchange Traded Fund (ETF) is a fund with tradable shares on an exchange. Bitcoin ETFs, specifically, simplify access to Bitcoin in investment portfolios. These funds hold Bitcoin, offering a straightforward way for investors to participate the crypto hype without need of buying real #Bitcoin over a crypto exchange.
2⃣ ETF and the classic financial market
Until now, the crypto market has been decoupled from the traditional financial market. In the past, Bitcoin could only be bought via crypto exchanges.
As we are well aware, Bitcoin's history is marked by scandals and crypto exchange bankruptcies, with the most recent being the #FTX crash. This has repeatedly led to resentment in the past.
Large asset managers and financial institutions in particular have not yet invested in #Bitcoin, especially because of the uncertainty. In its early days, Bitcoin attracted idealists, developers, and visionaries, but not the big money. This will change now.
January - first ETF approval
(the first of several pending applications)
According to Bitwise, the estimated spot bitcoin ETFs could capture 1% of the $7.2 trillion U.S. ETF market within 5 years, or $72 billion in AUM. This is huge for #Bitcoin
March - FED start to cut interest rates
FED keeps interest rates unch for the 3rd meeting and its expected to see three cuts next year. Markets price 5.1 cuts for 2024.