A bitcoin and crypto collapse is coming, according to the cryptocurrency expert SuperMan. In a video, he presents his evidence that the market is not even remotely close to the upcoming pain it will face. Previous dips in bitcoin were caused by shifts in crypto-specific cycles, but this time, the market is facing a soft recession. While politicians have argued that the current state of the American economy is not a recession, SuperMan believes that maximum pain is on the horizon for both crypto and financial markets, which will likely be “cataclysmic.” He advises viewers to watch the first 20 minutes of his video to learn more.
Why a Bitcoin and Crypto Collapse is Incoming
In this article, we will be discussing the upcoming collapse of Bitcoin and the cryptocurrency market. The author believes that we are not even close to a Bitcoin and crypto bottom, and they will be presenting evidence to support this claim. They warn that the collapse will be dangerous, cataclysmic, and harsh.
Why People Believe We’re Close to a Bottom
First, let’s address why some people think we are close to a bottom. The author points out that Bitcoin’s price has not fallen dramatically since the United States announced a soft recession. Bitcoin has even grown at times, reaching highs of over 24k. However, the author argues that this does not mean we are close to a bottom.
Evidence for a Coming Collapse
The author presents four bottoms that Bitcoin has previously hit: October 2011, January 2015, December 2018, and March 12, 2020. They believe that all of these bottoms were accurately predicted by Bitcoin dropping below the cost of production, which they estimate to be around 13k today. However, they caution that these bottoms were all part of non-macro related market cycles.
The author believes that we are now in a different environment: a soft recession. They point out that during previous recessions, peak employment was relatively high. While we are not currently experiencing a bad job employment economy, this is actually bad news for crypto. If earnings for major corporations and businesses are high despite Bitcoin’s fall, how much worse can it get when the economy really begins to suffer?
The author then goes on to discuss several other factors that will contribute to the upcoming collapse. These include talks of a recession, the Fed interest rate going up, the quantitative tightening in March of this year, and several catastrophic events that have occurred in cryptocurrencies, such as Terra Luna, Celsius, Three Arrows Capital, and Voyager.
In conclusion, it is clear that the author believes a Bitcoin and crypto collapse is incoming. While some may argue that Bitcoin has not fallen as drastically as it could have in a soft recession, the author points out that there are many other factors at play. They caution readers to watch out for maximum pain and prepare for a harsh reality in the near future.