The cryptocurrency bull market run that occurred from early 2019 to late 2021 was probably the greatest single asset class bull market that I have witnessed in my lifetime. Fortunes were made, and many millions of people around the world learned about trading while finding something to do with their time while they were told by their governments that they couldn't carry on with their normal daily lives due to the pandemic. However, with the ferocity of a massive bull market came an unprecedented level of hubris.
The newly minted crypto millionaires took an attitude of "have fun staying poor" if you don't join us. Crypto HODLers rewrote the book on arrogance obsessing over Lambos and expensive watches. Cryptocurrency investing became the largest cult in the history of mankind and its leader, Michael Saylor, is adept at coining tweets aimed at raising the morale of his disciples and reinforcing their HODLing discipline. This is Saylor's latest display of unparalleled hubris:
This is evidence of a God complex. Saylor acts as if he can see the future, and like most cult leaders, his disciples believe him.
I learned a long time ago to get on my knees and bow to Mr. Market, not the other way around. Crypto bulls are now learning one of the oldest pieces of market wisdom:
"He who lives by the crystal ball will eat shattered glass."
The crypto meltdown of the last month has brought about a great deal of schadenfreude. The levels of schadenfreude that I am seeing out there this morning tell me that we are likely to see a relief rally very soon, albeit a short lived one. With Bitcoin down 7 weeks in a row and Luna's carcass being swept away, prepare for a last gasp rally before the last remaining crypto holdouts are kneecapped and delivered a final fatal blow.
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