The prevailing sentiment in the cryptocurrency markets suggests an acceleration of the downturn, causing panic among investors. During surges, the most prominent figures are noted for their boldness, aiming for higher peaks, whereas, during declines, deeper troughs are expected. This volatile environment sends investors with weaker psychology into a frenzy, running back and forth. However, Julien Bittel raises a cautionary point.
Julien Bittel’s Insights on Cryptocurrency Predictions
Julien emerged into the spotlight amidst the rising panic, criticizing those who bury their heads in the sand when things go awry. At the time of writing, the BTC price rebounded to $85,000 yet remains at a 6% loss.
“Most people step back to avoid ridicule. I understand. None of us want that. But if you’re in this game, you must learn to accept the blows…
I’ve been doing this for a long time. Over the years, I’ve made right decisions, but also wrong ones. That’s the nature of markets. It humbles everyone. If you don’t like these views, just stop following. It’s that simple.
Currently, almost no one wants to voice an opinion. Everyone has their heads down, unwilling to listen to bullish arguments.
As the market falls in this manner, distinguishing signal from noise becomes nearly impossible as every narrative competes for emotional bandwidth. Hence, I’m sharing this. It’s neither a call nor an opinion. It’s a fact. What we need now is an objective perspective, not subjective. This market is oversold, but forming a bottom takes time.”
Looking at past oversold conditions, since the bull market began in Q4 2022, Bitcoin’s RSI dropping below 30 on the last five occasions has consistently led to higher paths of least resistance on average.
Important note: If you believe the bull market is over and we’re entering a year-long period of pain, these charts are not for you. Move along…
LeverageShares will launch the world’s first 3x and -3x Bitcoin and Ether ETFs in Europe next week. This is a crucial detail, and we will see more products in the coming year.
The AI Bubble
Lisa Cook’s bubble statements led to a downturn that stifled cryptocurrencies, but this was just one Fed member’s opinion. Even Powell, despite his hawkish stance, mentioned in late October interest rate decision announcements that we are not in a dot-com-like era, and AI companies, although not yet profitable, have products that garner attention.
Fed member Jefferson recently echoed these views, stating;
“I see significant differences between the dot-com era and the current AI era. The financial system remains robust and resilient. The differences between the current market and the dot-com era lessen the likelihood of a repeat of the late 1990s events. Limited leverage usage may reduce the impact of sentiment shifts on the economy, but we closely monitor AI companies’ debt issuance.
Stock gains related to AI, unlike during the dot-com boom, largely stem from AI companies’ real earnings. It’s too early to tell how AI will impact the labor market, inflation, and monetary policy.
I have no specific view on what constitutes a bubble; I neither favor nor oppose what’s occurring in financial markets.”