Crypto currency: "The Digital Tulip"?
Updated
📌 During the last five months, the price of Bitcoin increased more than five times - from $10,000 to over $60,000 while the global crypto currency market capitalization topped $1.7 trillion. When it comes to traditional assets, such a rapid rise in the value of an asset typically indicates the emergence of a financial bubble. But, what about crypto currencies?
📌 Against the tsunami of crypto currencies' market capitalization increase, financial bubbles of the past look like small and mid-size waves, historically adding 40 to 440 percent to the asset value. The value of global crypto currency markets increased almost 900% from March 2020 to today.
📌 When do bubbles usually reach their peaks? In looking at past bubbles, the longest time period is four years with an elongated period experienced by the real assets markets. If the crypto currency bubble is compared with digital asset bubbles, like the Dotcom and Biotech bubbles, it may peak 13-21 months after the bubble started to blow or between March and December 2021.
Is this time different? Super-easy monetary policy and expansionary fiscal policies in the US and around the world coupled with the accessibility of financial instruments and stock exchanges for a wide range of non-professional investors may make this "digital tulip" bubble different than bubbles of the past. These factors make it more difficult to predict how much the peak value of Bitcoin and other crypto currencies can exceed their fundamental price levels defined by the cost of coin mining and infrastructure maintenance.
We are expecting a Bubble crash in Crypto Market..💭
What's your views and Thoughts 💭 Please feel free to describe below.
📌 Against the tsunami of crypto currencies' market capitalization increase, financial bubbles of the past look like small and mid-size waves, historically adding 40 to 440 percent to the asset value. The value of global crypto currency markets increased almost 900% from March 2020 to today.
📌 When do bubbles usually reach their peaks? In looking at past bubbles, the longest time period is four years with an elongated period experienced by the real assets markets. If the crypto currency bubble is compared with digital asset bubbles, like the Dotcom and Biotech bubbles, it may peak 13-21 months after the bubble started to blow or between March and December 2021.
Is this time different? Super-easy monetary policy and expansionary fiscal policies in the US and around the world coupled with the accessibility of financial instruments and stock exchanges for a wide range of non-professional investors may make this "digital tulip" bubble different than bubbles of the past. These factors make it more difficult to predict how much the peak value of Bitcoin and other crypto currencies can exceed their fundamental price levels defined by the cost of coin mining and infrastructure maintenance.
We are expecting a Bubble crash in Crypto Market..💭
What's your views and Thoughts 💭 Please feel free to describe below.
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Bears into the game.Note
Waiting for 45k to book Profits. Nothing changed Bears into the game.
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We are near!Note
33k Target also Reached..closed...
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:)
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