Realizing Bitcoin is a Shitcoin to the World
I’m an Altcoiner through and through. Back in the old days, we were addicted to the fast rise and fall of the newest shitcoins of the week in Bittrex against the backdrop of the stablest coin in Crypto which was Bitcoin. The early years of 2014 to 2017 was when you see the most popular trading pairs in the Western world which were altcoin/BTC pairs (In China, it was altcoin/CNY pairs, which really was the ones which dictated the markets back then).
The old narrative was whenever Bitcoin is in a steady, non-volatile uptrend, altcoins flourish, liquidity comes in from old and newbie Bitcoin traders, looking for faster price action. Hence, the term, “Altcoin season” was born. It was during this time when most of the exciting trading activities of crypto happened. However, once Bitcoin volatility picks up and accelerates its current trend or goes to a new trend, altcoin prices and trading activity dies. But first, they track Bitcoin’s ups and downs twofold to tenfold. And then eventually, the market dies until the next coming of a new altcoin season.
This experience of being an altcoin trader which I think gave me a unique perpective on the new dynamics of the crypto markets in relation to world markets. In that, I have come to realize Wallstreet boys see Bitcoin as a second rate market compared to the traditional markets they are used to. Sure a little better than penny stocks, but yeah, they view Bitcoin and its “extension,” the altcoins as beta to their stocks and bonds.
It all started in 2020, when crypto ETFs and many crypto-centric trading have been adapted by big financial institutions. Big name traders and funds can now dip their toes into crypto trading. Hence, Bitcoin and crypto follows US and world financial events to the tee.
Where it used to be you just monitor pure crypto development news, now you have to follow US Federal Reserve news, US economic data, NASDAQ and S&P 500, etc - Interest rate cuts or hikes, yuck.
Just like the altcoins of old, when US stocks are in a healthy steady uptrend, Bitcoin and crypto enjoys a season much like the “altcoin season.” Bitcoin is now considered a multiplier of traditional investments, whether up or down - a riskier-on asset. LOL. So much for that digital gold narrative.
So, what now? What’s the new trading/investment strategy for crypto?
Well, I firmly believe in innovation first and there is a room for cryptocurrencies in the future because decentralization is still the future. Right now, the world is still warming up to crypto and this spells one more dizzying uptrend ($250k? $500k? $1m final form?) until the price action becomes boring and trends become drawned out.
I think crypto will ride on the current hottest trend in tech which is AI. AI is in everything, AI will change a lot of things, stuff never possible before. And Bitcoin and crypto has a seat in that because innovation rules. So, watch the tech market, Bitcoin will be beta to its price action for a long time.
