Thoughts on the current cycle
Thoughts on the current cycle
With the recent news on the inflation rate increase, it got me thinking about the state of the current cycle. We can see that the fed selling off assets in their balance sheet has led to lower liquidity and hence a overall downtrend in others dominance over time. It has slowed down since their announcement that they have decided to sell more slowly. Hence, a major catalyst proved correct by previous cycles is the starting of QE (printing of money) which generally leads to “alt season”.
However, based off what i know, QE is only activated to stimulate the market. With rising inflation and markets booming, i would think there is a very low chance that it would happen again like it did the previous cycle where they needed to activate it due to covid.
Hence with this, i dont forsee a “parabolic” alt season like we did last cycle but more of a overall increase in all coins until interest rates start to rise again (probably around march 29 fomc meeting). And who knows, with new catalysts such as more etfs, btc reserves and a pro crypto administration, the bear market wouldnt be as bad as it was back then or maybe it would even be a supercycle lmao but i am worried that since the cycle is now unpredictable we cant really predict exactly when to take profits. One things for sure tho, huge rally = huge green candle = more greed = more leverage players = dump afterwards and thats when im probably taking profit this cycle
Correct me if im wrong though, would love to hear your thoughts on the current cycle!