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  • 🚨 Crypto is crashing. What’s next?

🚨 Crypto is crashing. What’s next?

PLUS: sh*t hits the fan

GM everyone. This is 2036.

I won’t sugarcoat it: things are ugly.

The crypto markets are bleeding 🩸

  • Bitcoin is down to ∼$57,000 again.

  • Many altcoins are down -60% or more from their highs.

  • The Hong Kong ETF launch was a flop.

  • CZ , the founder of Binance, is going to prison.

We were promised a mighty bull market with flowing riches, but it’s nowhere to be seen.

So what’s going on?

I’ll let you in on some assumed crypto knowledge. You’ll hear these words thrown around a lot. And right now, they’re important.

You see - crypto bull markets can be divided into two waves that take their names from video games:

  • PvP (player versus player)—in which a fixed number of investors and capital fight over a pie that isn’t growing very much—sometimes even shrinking. The same money is sloshed around to different opportunities, which means one’s win is another one’s loss.

  • PvE (player versus environment)—in which a steady stream of new money enters the space, and everyone gets richer as the pie grows exponentially.

PvE is driven by new retail investors continuously pouring more money into crypto as the bull market takes off to new heights.

Right now, we’re still in a PvP environment, and retail hasn’t arrived.

So it’s the same investors who are fighting to squeeze out maximum returns with limited capital (yes, that’s you and I).

Attention is limited, and investors either:

  • hold their high-conviction coins in anticipation of PvE

  • cut their losses as the market bleeds

That means there isn’t much new buying happening.

In the grand scheme of things, however, Bitcoin is down ‘only’ -22% from its all-time high, which is just a typical correction in a bull market:

And here’s the kicker: PvE can arrive anytime now, but only after Bitcoin reaches new all-time highs.

Bitcoin needs to break through ∼$73,000 for mainstream (and social) media to start covering it again and put stars in the eyes of new investors.

Many investors will just buy Bitcoin. But many others will want riskier bets with more upside, and that’s when high-quality altcoins take off.

Remember this chart?

… which in this bull market, could also just be this:

Whichever one it is, Bitcoin will lead the pack.

We’ll know we’re in altseason when 75% of altcoins outperform Bitcoin over the course of at least 90 days.

In the last 90 days, only 37% of altcoins outperformed Bitcoin. These were mostly:

  • memes (WIF, PEPE, DOGE, SHIB, etc.)

  • and AI (RNDR, NEAR, etc.)

So right now, there’s little point checking the price of your favorite miner or altcoin. As long as Bitcoin lingers low, you’ll probably be disappointed.

Sure, there will be a few outliers. But these tend to lose attention as quickly as they gain it.

When PvE arrives, however, altcoins will not revisit their current prices until the next bear market.

Things will get a lot crazier than you think.

Until then, we just wait.

Things can move anytime now, but until they do, they can also slowly bleed more. So be prepared for that.

The best thing you can do right now is to:

  • hold onto your high-quality tokens

  • buy any fantastic deals that come along

  • let time do its thing

We’re almost there. Don’t get shaken out just before the finish line.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.