The crypto asset market is highly emotional, full of noise and thus incredibly hard to navigate. This has created significant information asymmetry among participants, which can be a boon to investors who can be level headed and get proper signal. We are at an inflection point in a market that shows institutions are coming as critical infrastructure continues to come online. Most notably the launching of CME Futures in 2017, Fidelity Digital Assets in 2018, and now ICE’s BAKKT in 2019.
The crypto asset market has since been primarily dominated by retail investors but certainly has shown niche hedge funds in the mix as well. Interestingly enough, this once in a lifetime market has shown that not only has the average Joe not taken advantage of buying and selling opportunities, but even some of the most prominent hedge funds in the space did not have proper risk management.
If you are reading this article around the date of publishing, it is time you take notice of where we may be in the current market cycle. The chart below shows the past 3 Bitcoin market cycles, which consist of bull markets, bear markets and accumulation phases. Based on this chart, it appears we are entering a final reaccumulation phase before the next large bull market which would likely propel Bitcoin far higher than the previous $20,000 all time high.
It’s important to understand that this chart is not to be taken as gospel but more as a basic education reference point to help you understand market cycles. The reaccumulation phase may very well be shorter (or longer) than shown in the image.
Again, this market is highly emotional and causes most investors to focus on short term price action instead of gathering high quality information and positioning themselves properly for more significant midterm or longterm price action. The crypto asset market and associated high quality assets will likely continue to appreciate in value; don’t miss out on this once in a lifetime opportunity due to low quality information and short term thinking.
Please Note: Bitcoin and other Crypto Assets are highly volatile and highly speculative. The following information is for education purposes only and is not financial advice. Always consult your financial advisor before making decisions that can effect your long term financial health.
About the Author
Anthony Bertolino is dedicated to educating the world about Ethereum and the future of finance. He studied Blockchain Technology at U.C. Berkeley and currently lives in Los Angeles, California. If you want to learn more or have any questions, reach out to him on Twitter.