Bitcoin Bull Market May End, Says MRB Partners
Boutique. Investment research firm rb partners released a report last week. Titled has the crypto fever. Broken the point to a couple of potential reasons first the fut- they know to main dimensions to this environmental concerns and regulatory risks. These are things we've discussed extensively on this show. Environmental concerns have been particularly acute and in the media. I since tesla made their big bitcoin. By and second since ilan walked it back because of environmental reasons regulatory risks fuel frankly more like a forward projection as we'll get into in a moment but the second reason they gave for a potential downturn is a reduction in monetary stimulus. They wrote quote easy. Money has helped fuel the crypto bubble and a slow unwinding of this trend. Globally will become a headwind for the speculative digital asset. Will clemente in palms newsletter. Adds some technical mv to this as well. He writes zooming out. You get this divergence between short and long-term holders based on historic behavior of these cohorts we are either headed into a full-fledged bear market or in a mini bear market similar to the consolidation between the two double pumps but still in a broader bull market at that time there was a similar phenomenon of long-term holders stepping in and doing the heavy lifting while short term holders panicked sold based on metrics looking at the broader cycle. I tend to side more with the ladder. I could be wrong. Interestingly to me this is not just analysis or speculation that we're seeing as well. There's actually some amount of preparation quintas growth story this week called. Dow's prepare for the next crypto winter with treasury diversification. It's basically about how many decentralized autonomous organizations many of whom are funded by. Governance tokens are selling. Some of those governments tokens now to move into fiat denominated stable coins. That could help them weather downturn. Now i remember twenty eighteen really well and frankly teams that manage treasury. Well were often not only able to survive but put themselves in a hugely powerful position relative to their peers. Those that didn't and just hope that their tokens would return to their previous highs tended to perish so i don't think it's silly for these dow's to be starting think in those terms regardless of where we actually are in the cycle.