The creator believes that Bitcoin and crypto assets are in an opportunity zone, following a business cycle indicated by PMI, with signs of undervaluation and upside potential. The next six months will test two different Bitcoin theories: the traditional 4-year cycle theory and the business cycle theory measured through PMI, and one of these theories will start winning. The creator also notes that with the start of a new period of productivity expansion, crypto assets, particularly Bitcoin, are poised to expand along with the broader market cycle, based on historical patterns where Bitcoin has typically followed this trend after periods of expansion.
The creator believes that Bitcoin is showing signs of a bullish divergence, with the current price action breaking below the 50-month moving average and potentially forming a bottom, similar to previous bottoms in 2018 and 2022. The creator notes that altcoins bottomed before Bitcoin did, suggesting a potential difference in current market dynamics compared to June 2022 when quantitative tightening started. Additionally, the creator views the current market conditions as a strong accumulation point, indicating a macro opportunity zone for crypto.
Michael Sailor Strategy approving up to $1.25 billion Bitcoin monetization for USD reserves, STRC dividends, and buybacks is bullish for crypto because it turns Bitcoin into real economic infrastructure, enabling high yield digital credit products that attract fresh capital from institutions and yield hungry investors. The creator believes that the current market conditions, marked by headlines and capitulation, present a buying opportunity for Bitcoin, especially with Sailor's treasury actions being innovative for the crypto space. Bitcoin is showing bullish divergence and may be ready for a bounce, with the potential for a higher low on the momentum oscillator. The creator believes that Bitcoin dominance has a strong possibility to move to the upside, and if that happens, it could signal a bullish move in the market, particularly for altcoins, as seen in previous cycles where a similar pattern occurred before major bull markets. Altcoins are showing a bullish sign when they move sideways or up while Bitcoin is making a power move, which supports a macrobull market narrative and altcoin bull market setup.
Cardano was not hacked, but rather third-party wallet software was exploited, resulting in a loss of 16 million ADA across 374 addresses, with emergency rescue measures triggered to secure 129 million ADA for affected users. The situation involves a security incident where Emurgo recovered 129 million ADA from affected wallets, but raises questions about how they accessed keys and identified wallet owners. The creator sees a prolonged and extended downturn in Cardano's price, with a 32% decline from what would have been the bear market low, and believes the current situation reflects a broader crypto market cycle of volatility, downside, and choppiness. Crypto is in an opportunity zone, and the Cardano chart is a good picture of what's been going on in crypto, suggesting a potential long-term entry point.
The creator is entering an accumulation phase for both Bitcoin and Ethereum, viewing the current market conditions as a potential bottoming out phase. They note that Ethereum Foundation is reorganizing and laying off staff, which they interpret as a typical bear market signal. The creator believes we are at a pivot point following a prolonged period of weakness, similar to patterns seen after quantitative tightening and during the COVID dip. They are accumulating altcoins and Bitcoin with a thin and spread-out approach due to uncertainty, but remain comfortable with their portfolio even if crypto goes parabolic.