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Crypto Got Shredded Now Trying To Flex It's Muscles

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@chekohler
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Hey JessHODLrs

It’s been one hell of a ride since the 2017 bull run; I don’t think anyone predicted the drop to $3000 and the slow climb back up to what looks like $12 000! That’s right BTC has 4x’d since its last all-time low, and it’s showing no signs of slowing down.

I think it’s almost as good as saying the bull run is officially confirmed at this point! We’ve weathered the storm of the previous correction and allowed the previous stock to flow model to run its course.

BTC's predictable nature might have midterm velocity but if you look throughout the history and as more people get involved, it's literally up and to the right. I'm sure as it gets older, we'll see this cyclical growth of BTC smooth out, but this run is most likely not one of them.

BTC is still a small asset class of only a few billion where companies and other asset classes are well into the trillions. So the upside for building and securing positions here are potentially huge.

Cleaning house

Since the peak at 20k crypto companies and projects have had some lean times, poor capital allocators and scams have been purged, not all of them mind you, but a good few have. Companies and projects had to pivot and optimise to ensure they survive the slim times, and those that have stack around will get a bigger portion of the market.

These optimisation and cost-cutting gains will begin to show as BTC brings with its rise more capital and purchasing power to work within the crypto economy. Projects that were lean until now will be allowed to surcharge and hopefully take full advantage of this bullish cycle.

Conditions of BTC to rise

If you try to put near-infinite fiat money and extract its relative purchasing power from every country and you force it into something with limited supply you’re going to see asset prices rise, it’s simple as that!

As more money wakes up to less and less yield in traditional markets, consumers and fund managers need to look elsewhere! Some of those eyes are falling in BTC, and as more money starts to chase BTC we see the price increase!

We're also seeing super low or negative interest rates which is why we see the DE-FI space pop off like crazy as investors look for places to put their capital where they can get a passive return.

BTC is by no means a perfect solution but damn at this point; it only seems like the only game in town at this point.

This time is different

The last BTC run was not under such dire circumstances with a pandemic, economic lockdown, raging unemployment, more money printing than ever before and the desperate search for stores of value and yield.

This could be like gasoline to the fire that is BTC, and if we do get the run, we think we will they could pump more air into the "bubblenomics" that is a bull run.

Taking profits and securing runway

Both projects and investors will have big decisions to make on when to take profits. If we do start running to NEW ATH's those of us who have been here will need to be clever about when things have become overpriced and start to take profits. Taking profits is something I struggle with personally as I'm always looking to secure more sats.

What I will try to do is ride the cycle as best I can and not try to FOMO, when shorts on BTC hit an ATH I'll rather get out and secure a new position.

I think both individuals and projects that want to prepare for the next winter to have the capital to run or buy-in at new lows will do well to find an exit price they feel comfortable with and secure something for the next correction.

I hope to get it right this time around and learn from the lessons of the previous two runs, holding thumbs.

Have your say

What do you good people of HIVE think? Are we better equipped to make strides for the next run?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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