$BTC

Sentiment rules the ball

Now analysts of all stripes are trying to explain why the market is growing after, it would be, obviously not “bullish” Powell’s speech. A lot of discussions and disputes. But all this has nothing to do with real reasons.

The real reasons, as I wrote above, are in the sentiment. Institutions were merged, hedge funds were merged. Only retail bought, which is paradoxical. But we observed exactly the same pattern during covid. Retail was the first to buy up the market and beat major professionals. Paradox, but this is reality.

Why is that? It’s all about bureaucracy and motives. Hedge funds need to be neutral, so they come out. The herd instinct is triggered by the institutes, because if everything is cashed, then I need it too, otherwise I will be in the tail of the distribution of performances, and this threatens with the loss of a sweet spot and a couple of millions of bonuses a year. So they come out, not on logic. I bought one retail because I don’t have all these factors.

As a result, now that everyone has been sold out, it turns out that there is nothing more to worry about, and it is necessary to return the exposition so as not to be in the tail of the results in the industry again.

It’s true and that’s what drives the market now. And the fact that CFA charters write in the media is a complete dump.$BTC