Some of you probably remember me saying that the final vertical phase of a bubble is characterized by price rising at least 100% or more in a year or less.
Bitcoin is clearly in the final vertical phase of its bubble. It’s now becoming more and more dangerous every day. At some point you just have to say enough is enough, get out, and stay out so you don’t get caught when the bubble pops and price comes crashing back to earth.
Folks its not different this time. There is no fundamental reason for why bitcoin will go to the moon and stay there anymore than there was for housing prices in 2006 or tech stocks in 2000.
Bubbles are a symptom of central bank monetary policy. The price of money is kept too low for too long. Eventually all that easy money begins to flow into something. When the public starts to take notice then it flows very rapidly into the asset creating a parabolic rise. At some point the last buyer buys and then price collapses.
It’s been my opinion that years of 0% interest rates and trillions in QE will create multiple bubbles. The first one is occurring in bitcoin. The second one will be in the stock market. The third one will be the commodity markets, focusing in the precious metals.
Look at this chart and understand what it means. This time isn’t different. Pick a spot where you can say “I’ve made enough” I’m getting out before this thing comes crashing down.
Then get out and stay out. Trust me you can’t time the top of a bubble. You just have to be satisfied at some point, take your money and run, and find something else that’s undervalued and not at risk of a crash.
300% since March. That is a parabolic bubble.