Reasons This Bull Run Is Like None We've Seen Before - And Why A Dip/Correction Might NOT Be Coming...

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The crypto bulls are BACK! And it's about time, god knows they've had plenty of rest.

I don't want to get ahead of myself - so i'll begin by throwing in the usual warnings of 'anything can happen, nobody knows the future, market is volatile'- that's true, but what's also true is that this bull run is dramatically different from any we've seen before.

I'm not saying it'll be straight up from here, i'm saying after over a year stuck in a cycle of losing any gains shortly after getting them - this may be the bull run where we end up keeping most of it. Because this time, we're not wondering why it went up in the first place.

Last time crypto exploded in late 2017, the 'why and how?' were pretty easy to explain - a lot of people were buying cryptocurrencies. That's it.

Crypto didn't suddenly become easier to acquire, easier to use, or implemented into the world in some other new way. It was speculation-mania fueling people's motive to buy, those buyers were met with the laws of supply and demand. In one word, it was hype.

This time, there's so many legitimate developments, I wouldn't use the word 'hype' at all - what i'm feeling is excitement, legitimate excitement about real progress, that's actually happening.

Let's take a look at some of the largest developments happening right now, fueling this run.

If you're outside the US, you may be unaware at just how big this financial giant is.  They oversee over $7 trillion in customer assets, employ over 40,000 people, and have nearly 200 offices in the country.  Cryptocurrency will soon be among the assets they offer clients, beginning with Bitcoin.

We first learned of this months ago, thought it was months away from happening - but according to sources they're actually just 'weeks' away!

The venture involving the New York Stock Exchange, Starbucks, and Microsoft, has been going through the approval process with the CFTC.  Their business plan involves holding a lot of crypto-assets for their clients, thus requiring custodian licences.

Today we learned they may have just acquired a company that already has them! A surprise announcement that the launch has been fast-tracked could happen at any moment!

Controversial, I know, and I've had my fair share of criticism.  But the topic of this article is price movement, and in that regard, when the owner of the largest social network, Instagram, and Whatsapp announces they're launching a cryptocurrency, it gains some attention. It's all some investors from the traditional financial markets need to hear to become convinced that they should probably own some crypto.

Then, we recently learned of it's $1 billion budget, and partners like Visa and Mastercard. So any traditional investors on the fence just officially got shoved over it.


To be clear, once again - i'm not saying this means no downward price movement, but I am saying there's a chance we keep most of the recent gains. Looking back 1 month and considering that the starting point - Bitcoin around $5000, and for the first time in a long time we have a chance at not returning there.

Every time a climb like this has happened, I expect a fall almost just as big, and realistically my best  hope is that we keep 2%-5% of what we gained in the run up.

But look at what's different this time!

Let's use Fidelity as an example. Right now, the anticipation is contributing to the rise - but if that's followed by the actual launch of their entry into crypto - that means even MORE buying is coming, and prices going even higher -  not a correction/dip!

The price has to be incorrect before there can be a correction - and the price may be exactly what it should be.

Here's what it'll depend on - will the current excitement about what's to come, be immediately followed by those things actually coming?

Or will there be too many days/weeks between this excitement, and delivery? Allowing people to calm down in the meantime.

Either way - the long term has never looked this good. That's why ironically, a lot of people really want a dip - no surprise, it would be the most confident buying of the dip thus far.

It just seems perfect that the one time we want a dip, will be the time it doesn't happen. However, this is a disappointment most of us would be willing to accept.

Author: Ross Davis
E-Mail: Twitter:@RossFM

San Francisco News Desk

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