Crypto Market Pull-Back
Could the entire crypto market pull-back be a temporary short-term bear market in a secular bull market and represent a buying opportunity, or is this the end of the cryptocurrencies bull cycle?
To put a perspective on crypto market pull-back the total cryptocurrency market cap has fluctuated from a high of $2.56T to today’s $1.38T, which represents 53.9 % pull-back from its high.
But cryptocurrency investors are immune to pull-backs, price corrections, and crashes. Take a look at Bitcoin’s historic price corrections from all-time highs spanning a decade.
Despite being one of the world’s best-performing assets, bitcoin has experienced plenty of massive price drops. For example, Bitcoin price from Jan 12-27, 2012 went from a low of 4USD to a high of 7USD. Seven-year later the ride was even wilder with Bitcoin price going from a low of 5,040 USD In June of 2019 to a high of 12, 867 USD in March 2020. This year Bitcoin’s price has fluctuated from a high of 64,706 USD to a low of 31,663 USD in May’s latest sell-off.
Could the 2021 cryptocurrencies pull-back be yet again another buying opportunity, which has been a reoccurring theme of the last decade?
First, we need to understand that not all cryptocurrencies are the same as I explained in a piece entitled, Diversified Crypto Portfolio, dated June 5.
I believe that cryptocurrencies that have a utility represent a buying opportunity in this recent crypto market pull-back
In other words, these are cryptocurrencies that are building the booming global digital ecosystem. They are part of the Build Back Better World master plan, which was revealed by the International Monetary Fund back in 2020.
Cryptocurrencies that facilitate the emerging global digital ecosystem sit well with the world shadow government’s plan to rebuild an environmentally sustainable global economy
Any Technology which reduces the burning of fossil fuels for energy and enables people to do more with less finite resources is likely to be endorsed by the cryptocracy, the invisible government. So, the transients, heads of government that we see on stage, will continue to push forward environmentally sustainable economic policies.
The global digital ecosystem is one aspect of the fourth revolution that promotes the digitalization of everything, and through the eyes of the cryptocracy could be viewed as diverting the economy onto an environmentally sustainable trajectory.
Cryptocurrencies that have a utility that includes DEFI, Web 3.0, and NFT cryptos could represent best buys in the crypto market pull-back
I believe the global shadow government will tolerate Bitcoin as a store of value, a kind of rival to gold. Both assets compete with each other, thereby keeping their price in check. So, Bitcoin coin could be a buying opportunity in this crypto market pull-back. But Bitcoin would need to be less volatile to fully compete with gold as a safe haven store of value asset. I remain ultra-bullish on Ethereum as it is the building block of the global digital ecosystem.
However, the crypto market pull-back could have a few red herrings
I would keep away from cryptocurrencies that are used solely as alternative currencies. Suicided John McAfee’s favorite Monero could also get whacked. Since medieval times the King has incarcerated or killed rivals that threaten its power structure. CBDC is the final push for global domination.