Stablecoins are the backbone of the next crypto bull run

 

 What a bloody day! For those who have ignored numerous warning signs and kept chasing highs regardless, I'm sure they should have felt the max pain today with a 2% sudden mini-crash for the market. Of course, one day move does not make a trend and we will have to see what is coming next. For the immediate future, meaning early next week, I feel the chance is high for a quick bounce. If so, we will probably see the same group of people starting to chase again. So the following quote is a very nice reminder for them.

 

 

 But by no means I imply that the current bull market has already done. We are probably just entering the enthusiasm phase of the Sentiment Cycle at the grand scale of things. An eventual blow-up and melt-up top may still be many months away. Having said that, I still believe that a sizable correction is due for the weeks ahead before we see the more sustainable next leg up. 

 

 

 

   

  

  

  

 

The next crypto rally is coming....

 

  

Now about the bullish trend for gold and Bitcoin. Below is an analysis my friend shared with me. It is exciting to see that both assets as a store of value are breaking out strongly to the upside. Looks like gold may face a near-term correction but Bitcoin is likely just resuming its next major leg up. I think the chance is high that Bitcoin will end the year between $150K to $200K. 

But if history is any guide, when gold breaks out like it has this year – bitcoin’s breakout isn’t far behind. And as bitcoin goes, so go the altcoins.

We saw that happen in 2020 and 2024.This chart below shows the price action of bitcoin and gold during the 2020 pandemic outbreak.

 During the initial panic, gold rallied first. But once the market realized governments would crank up the money printer and flood the economy with liquidity… bitcoin took off. From September 2020 to April 2021, it rallied 543%.

 

 

 Something similar happened in 2024 as well.