We are likely heading into a major bull market.
I know, this started sometime ago. However, when looking at the macro factors, we are likely to see a massive run up. This is starting to line up from a macro perspective.
Even Jerome Powel has softened his stance on the fight against inflation. That means that we are going to see lower interest rates at some point. This could happen in the next couple meetings.
To the markets, that means liquidity. From that perspective, we are looking at market excitement. As all things with The Fed, reality doesn't even need to match the narrative. in fact, the reason the narrative becomes reality is because markets react.
When it comes to liquidity, it isnt really the Fed providing it. So many believe that is what will happen, market participants jump ahead and provide it anyway. Hence, monetary policy works, even if it is an illusion.
This has played out so many times the guesswork is exiting. It is just waiting for the Fed to signal its intentions and position oneself accordingly.
Buy and HODL
From a crypto perspective, this means getting ready for liftoff.
Why is this the case? When the Fed finally gives the go ahead, it is risk on. As much as people try to promote crypto as a safety valve, it is the exact opposite. Crypto takes off when risk is on.
The Fed loosening is that sign. Markets know the Fed is looking to move things ahead, and that is what happens. Buyers jump in, sending prices higher.
Keep in mind, this is market activity. It is not the economy. They really have nothing to do with each other. Here we are dealing with capital flow and risk assessment.
When it is on, crypto is very attractive.
Low Risk Within Risk
That said, there is no need to go crazy.
Crypto markets move as one. Those who are seeking own the crazy returns are taking on more risk than is likely necessary.
Let us look at Bitcoin. Where will the next bull take it? $100K? $150K? 200K? I dont think any of those are unreasonable to most people.
That is a 2x-4x from this point.
What about Ethereum? Could that hit $10K? That is a 3x. Again, not unreasonable.
In other words, the ability to make a boatload of money during this cycle is there and doesn't require chasing the latest fad. A lot of crypto will see between a 4x-10x without much risk.
That is the advantage of the buy and HODL strategy. If we know it is coming for many major coins/tokens, simply get on board and ride the wave.
Do Not Get Fancy
Times like these, the simplest approach is the best.
Do not overthink things. Here is where the straightforward tactics can net major results. We are looking at a total market cap explosion during the next bull cycle. It could go from $2.5 trillion to near $10T.
This is where having quality projects comes in. Whatever is the preference, just nestle oneself in the middle of the market. There is really no reason to reside at the edges looking for major alpha. That will be located right in the midst of it all.
From a market perspective, those who spend time filling their bags are likely to do well. This is where the long term approach pays off.
Remember, it is during the bear markets where money is made. The bull markets are when you get paid.
We are still early in the run. Keep that in mind.
Posted Using InLeo Alpha
