Over the past 12 months, the leading cryptocurrency is up by around 180 percent. This could be the end for many people as they believe bitcoin could have run its course, and now might be the time to short the market…
While a quick short might be profitable now, one trader thinks that the £10k difference rally from $3k to just over $13k was just a warm-up, nothing more. At the time being though, whereas a quick short could see a profit, there is one analyst who thinks the rally from $3k to nearly $14k is nothing but a warm-up. In fact, the same analyst claims that all four Bitcoin bull cycles were just localised bubble.
Every bitcoin bull run has got something in common and that is that they all saw the BTC price surge by a minimum of 340 percent from the top of the prior cycle.
“Each bull market topped out at a minimum of [nearly] 5x the previous top, and I expect that to happen again the next time around.”
In laymen's terms, this basically means that each bull cycle has an order of magnitude according to Garner adding, ”each BTC bull market is more dramatic than the previous one.”
Before we go any further though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!
But in terms of when he said, bitcoin is just a big bubble, he is dead serious. This is because they were mostly funded by retail investors.
The current bull-run is currently powered by big institutions. They were buying in at the bottom of December 2018, while traders counted their losses.
In explaining the significance of institutional entry, Garner says:
“Barely anyone noticed the first bull market of 2011. The next time around, in 2013, we saw real capital flow into crypto, but no media attention. In the bull market of 2017 crypto approached a trillion dollar market cap, with global media attention.
Each has more fiat inflow, more media attention.”