Why $10k Bitcoin and $600 Ethereum is possible
Bitcoin and Ethereum have had a mixed month since more information has come out regarding the economy and the Fed's next moves. With inflation coming in higher than expected, the market has begun to anticipate further and more aggressive tightening. The FOMC meeting in September reaffirmed this view.
Despite the market now assigning a higher probability of tightening, most risk assets have lost in-line with the market. Credit spreads are only starting now to tick up. The NASDAQ has barely lost more than the S&P 500. Growth stocks are down only slightly more than value stocks. Given these circumstances, I still see further downside.
In the video, I outline my current passive strategy: Once Ethereum reaches $1,000 (or around that level, probably closer to $1,050), I intend to start DCA'ing into Ethereum a total of 4 to 5 times over the remaining duration of my 24 month bear market estimate. The video further clarifies this strategy.
This is relatively new for me as I've typically actively swing traded, but I've realized now that my best gains in crypto have almost always been from buying and holding during bear markets and then selling during bull markets. I am still waiting on Ethereum to pull lower to reduce my overall risk exposure.
0:00 - Introduction
0:21 - How the Bitcoin Narrative Has Changed (Recap)
1:34 - Crypto Headwind: Financial Tightening
1:55 - Why Some People Expect Fed to Pivot
2:33 - Why Markets are Down Past Month
3:03 - Changing Interest Rate Expectations
4:09 - How Risk Assets Have Fared
5:06 - $10k BTC and $600 ETH reasoning
6:02 - These are NOT Bottoms, just anchors
6:16 - My Strategy
8:31 - Why More "Passive"?
9:23 - Key Warnings
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