Over the past few days, some friends asked why the CRCL Coin Hood didn’t have a vertical surge like BTC. Here are a few interesting observations:
1. After the last BTC run started for over half a year, Coinbase and Hood only then truly began their big move.
2. The stablecoin issuance also only started rising steadily about one year after BTC began.
Why does this kind of phenomenon happen?
1. In the first half year to the first year, it’s basically trading-platform funds starting to move into BTC that drive the price up.
2. Incremental/new funds only flood in on a large scale after BTC hits new highs or breaks to new highs.
3. Only when incremental funds pour in will it push up exchange trading volume and also increase stablecoin issuance.
4. Stocks in the crypto-related sector ultimately still depend on fundamentals/earnings, so the stock prices will truly reflect it with a delay of about half a year to a year. But this time, I think the market will likely front-run it a bit.
So if you didn’t buy the bottoms of those crypto stocks, I don’t think you need to be too anxious—wait for the pullback and buy. If you’re already on the train, just hold. That’s how cycle stocks work.
1. After the last BTC run started for over half a year, Coinbase and Hood only then truly began their big move.
2. The stablecoin issuance also only started rising steadily about one year after BTC began.
Why does this kind of phenomenon happen?
1. In the first half year to the first year, it’s basically trading-platform funds starting to move into BTC that drive the price up.
2. Incremental/new funds only flood in on a large scale after BTC hits new highs or breaks to new highs.
3. Only when incremental funds pour in will it push up exchange trading volume and also increase stablecoin issuance.
4. Stocks in the crypto-related sector ultimately still depend on fundamentals/earnings, so the stock prices will truly reflect it with a delay of about half a year to a year. But this time, I think the market will likely front-run it a bit.
So if you didn’t buy the bottoms of those crypto stocks, I don’t think you need to be too anxious—wait for the pullback and buy. If you’re already on the train, just hold. That’s how cycle stocks work.