Posted 8 months ago | by Catoshi Nakamoto
It’s been a crazy week in crypto, and let’s face it: a tough time for the Bitcoin Maxi Brigade. Why? Well, just as they were celebrating Bitcoin day – YAY, BITCOIN DAY!!! This happened**. The financial cartel stepped in. Mass liquidations. Fear and panic everywhere. Or was it? Because while history would tell us that Bitcoin Dominance should spike as people rush to protect their capital, it didn’t**. The altcoins had other ideas. Specifically, layer ones. And that’s because crypto is in the grip of layer 1 mania right now. Solana, Fantom, Cosmos, AVAX, Elrond and even Algorand are all waking up in a serious way.
Lets get it.
Welcome to BitBoy Crypto. Home of the Bitsquad, the largest crypto community in all of the interwebs. My name is Ben. Every day on this channel I show YOU how to MAKE MONEY in Crypto. If you like money and crypto then make sure to hit that subscribe button. In this video we take a look at Bitcoin and price potential for the remainder of this cycle.
Altcoins are pumping despite Bitcoin slumping. For any Bitcoin Maximalist that refused to invest in anything but Bitcoin, this must be one tough orange pill to swallow. But let’s get something straight: I love Bitcoin and it’s easily our most valuable holding here at Bitboy Crypto. I believe it’s the number one store of value there is and the most significant innovation of our time. What I can’t stand… is the hardline Bitcoin Maxi’s. Why? Well, not only are they close-minded and anti-innovation, they literally want every other crypto project to fail. Plus they actively enjoy seeing regular people getting wrecked. Like it’s some kind of moral justice for investing in anything other Bitcoin. So my thoughts and prayers have been them this week. I mean, it must be pretty rough when even mainstream outlets like Forbes are asking the multi-trillion dollar question: is Bitcoin losing its position as the crypto market’s leader?
But let’s take a step back for a minute. Because it would be impossible to answer that without addressing the bigger picture. After all, this was a huge week, a historic week. Something we could only dream of a few years ago: a sovereign nation has officially made Bitcoin legal tender. And look, President Bukele might be a divisive figure, there’s no denying the guy has serious machicmo. The guy wears a sash like he’s a senator from krypton. Anyways… with him setting the historic precedent, there’s been a lot of talk about which countries could be next in line. Places like Panama. Argentina. Maybe even Cuba. But reports this week suggest that Ukraine could be next, with laser-eyed President Vlodomyr Zelensky ready to go all in on crypto. The first step was legalization earlier this month, which he hopes will help Ukraine become a blockchain ‘magnet’ for specialists around the world. But experts believe they could be ‘gearing up to make Bitcoin legal tender’ as soon as ‘September 2023’. Just as Bukele hopes to move El Salvador from out under the dollar, Ukraine could be looking to crypto as an escape hatch from the ‘overbearing influence of Russia’. And this is what crypto is all about: economic sovereignty. For individuals and now even nations alike. For countries under the control of the powers that be – the IMF, the World Bank, not to mention the financial cartel – Bitcoin and crypto in general are fast-becoming a hot ticket to genuine independence.
This might be music to the ears of the crypto supporters, but it’s a serious headache for the fiat maximalists. People like Steve Hanke. You know, that guy that shouts on the TV all the time. He’s been up to the usual Hanky Panky this week, tweeting his super-repetitive list of countries he wants to see dollarize. Which is a bit like inviting people onto the Titanic. But a Titantic that is captained by a legit pirate – Janet The Felon Yellen. Not such an easy sell these days. You know my position, I believe the dollar index will go up as deflation kicks pretty soon. But it’s not a long term hold people. You hold it to buy more crypto. Hanky disagrees. He’s even spreading FUD about how crypto adoption could help the Taliban escape US sanctions. Ever think about the regular folk in Afghanistan trying to escape Taliban sanctions, Steve?! Clearly no because he literally only thinks about the dollar. And it’s why he’s trying to freak everyone out by calling crypto a cult. Though in his defence he is half right. There is a cult in crypto. It’s called Maximalism. And while the Bitcoin Maxi’s don’t agree with people like Hanke on economic issues, they do share one thing in common. They’re morons. Unlike the BitSquad! So do us a solid and don’t forget to hit that subscribe button and smash that like.
Anwyay, we’ve gotta have some nuance here. Because there’s a wide spectrum of Maximalists out there. You’ve got the hardliners, but also the moderates – people like Michael Saylor. Someone who doesn’t actively want other cryptos to fail, just thinks Bitcoin is the only name in the game. Or as he puts it: https://www.youtube.com/watch?v=wIhTGB3wqV0 Anyway, he just announced another huge Bitcoin purchase from MicroStrategy: 5050 bitcoins to the tune of 242.9 million dollars, cash, bringing their total holdings to just over 114,000. That’s roughly a Bitcoin bought every 5 minutes for the past 400 days, with an average entry price of about $27,000. Yep, if Bitcoin is the digital equivalent of Manhattan Real Estate, than he’s fast becoming the Apex Predator of Landlords. He’s probably going to buy that $300k hot dog cart that sets up next to central park on the next dip.
Which brings us to the macrostrategy. The bigger picture at play. Because while recent price action has been as skittish as the Falcons in the red zone – this is often the time to buy. Buy the fear, sell the greed. So easy to say, much harder to do. But it’s exactly what on chain-analysis shows us the whales are doing. I’ve said it before: forget the charts and look at what’s actually going on behind the scenes. It’s the beauty of blockchain. We can see where the smart money is flowing. Michael Saylor might tell everyone he passes in the street how much Bitcoin he has, but as Will Clemente pointed out, whales have increased their stack by 103,600 BTC in the last 3 weeks. If Saylor bought 5,050 of those coins, who bought the other 98,547? I guess we’ll find out. But I wouldn’t be surprised to hear some major announcements coming this quarter. Willy Woo’s another nice Bitcoin Maxi. And he just shared some pretty cool on chain data. First of all, he explains that retail drives macro cycles.
When retail stack their sats at an increased rate, as they’re doing right now, it’s the fundamentals saying we are in the middle of a bull market. The middle of a bull market. When we see this kind of sharp uptrend among retail investors as shown by these arrows here, it’s pretty much always followed by a parabolic run. The kind of run we’ve not yet seen this cycle. Secondly, watch the whales. I repeat. Watch the whales. They think coins are cheap right now. They’re playing the long game but also see a major rally ahead. When we get this kind of uptick in activity from the whales it’s historically been in anticipation of serious gains. The pump before the dump. After all, who else are they gonna sell their coins to when the retail FOMO kicks in. Not the BitSquad, you’re way too smart for that. Data from CryptoQuant also shows that we’ve seen almost 1.2 billion BTC coming off the exchanges, which are showing levels of reserves last seen in early may.
This could mean we’re about to see a “sell side liquidity crisis”, a “a supply squeeze” that would see prices rally. So whats’ next? Does Bitcoin need to “construct more pylons” in order to make those 100k gains? Well in the short term, who knows. We could blast on up or come back to test the low-forties. So be prepared and don’t freak out if we do. But coming back to the matter of Bitcoin’s dominance in the space. Clearly, the maxis will be proved right on one thing. We’re probably going to a million dollars at some point several cycles from now. We agree on that. But what’s playing out right now that’s so interesting and which they absolutely hate, is the decoupling. Not of Ethereum, which is what we’ve been talking about for years, but the entire ecosystem of Eth competitors, the layer ones, which have seen some face melting gains while Bitcoin was dumping, or simply trading in a range. It shows that the narrative is changing. The maxi’s understand perfectly half of what’s going on. Namely, that Bitcoin does one thing better than anything else so far. It stores value. Nobody who ever held it for more than 4 years ever lost money. It’s why the whales are scooping it up like never before. But it’s not the only horse in the race right now. That’s shifting. It’s a race of innovation in ways Bitcoin just can’t compete. Period. And for everyone in crypto it’s something we can all be getting seriously excited about.
That’s all I got. Be blessed. Bitboy out.