This too shall pass...
Crypto is still feeling the tightening in liquidity from the stronger dollar and higher rates in Q4 2024. That is almost done and financial conditions are easing fast and M2 is headed back to new highs. This is just a regular correction... 1/
We had the exact same correction in 2017 caused by the same reaction to Trump policies (higher dollar and higher rates which then reversed). 2/
Over time, we just keep climbing the log regression channel. Whether we stay at the man (red) or climb above it by another standard deviation or two remains to be seen as the cycle develops.
We are still early in the business cycle (using ISM) and as the ISM rises this year and into next year, crypto will rise with it.
Patience and less drama please! You know the #DFTU rules.
