What’s up everyone in this video we’re gonna be talking about the crypto markets and why i believe a crypto pump is going to be coming the last few days of the year, some stuff on tax information on cryptocurrencies as well. So before we get started, I do appreciate if you guys liked the video subscribe to the channel, if you haven’t already and hit the bell to be notified for regular video videos, [ Music, ], alright, everyone, so the crypto markets have been really boring over the last Couple weeks, nothing really happening here, moving up and down a few percent here and there uh, but i do believe there will be a pump the last few days of the year uh. This is not guaranteed. This is just speculation. So keep that in mind.
This is not financial advice as well bitcoin’s still under fifty thousand dollars. We didn’t break that hundred thousand, like we were talking about for end of year uh if this did stay on the stock to flow model uh, which we are going to talk about as well. So bitcoin test yearly moving averages hundred thousand dollars by Christmas needs a small miracle. So a lot of people are saying this is impossible, but we have to keep in mind. This is cryptocurrency.
Anything is possible in crypto all it would take to put bitcoin at 100. 000 is one major announcement and uh. It would skyrocket very quickly and we have to keep in mind this actually did happen during the bull market in 2017 as well. If we look at crypto global market cap, we can see bitcoin rallied um, well, the entire crypto space rallied towards end of 2017, going from a crypto global market cap of under 200 billion, peaking out around 800 billion, and that was beginning of 2018 and bitcoin hit Its peak at the end of 2017
So checking out bitcoin on the chart here we could get an idea of how parabolic bitcoin could go in a short period of time during the bull market in 2017, bitcoin went from around four thousand dollars to twenty thousand dollars in just a couple months period of Time most of that’s uh happening within a month period of time here around uh uh mid-november to uh end of december. So when this actually happens for bitcoin and it breaks, a hundred thousand uh can be at any point.
We have to keep in mind this market is heavily manipulated, like we saw back in may when the markets crashed bitcoin tanked from um over sixty thousand dollars to around twenty nine thousand dollars before it started recovering again. So any major announcement for bitcoin, i think we’ll send it to parabolic breaking a hundred thousand dollars uh that most likely will be temporary but regardless. I think that is gon na happen here in the next couple of months, especially with so much mass adoption stuff on the horizon, so uh. One major reason i think uh the markets are struggling right now is uh, because a lot of people are taking losses uh for tax reasons, so uh something people do especially in a year like this, where we’re in a bull market and everyone has huge profits. Uh they’re going to have huge capital gains taxes, and these people do not want to pay that they’re going to try to offset that as much as possible.
So what they’re doing is right now cutting their losses on small cap all coins that they don’t see doing much. Another thing here is: if uh, you bought anything at a higher price. You sell it at a lower price. For instance, if i bought theory my 5 000 and i sold it today at 3 900, i would be able to write off that uh loss on that ethereum and be able to buy back the same amount of ethereum pretty much the same day and then hold That into next year, of course, um you will eventually have to pay that capital gains tax on the profits, but it does allow you to offset this current year’s profit, which everyone is in huge profits. So i can uh definitely see why a lot of people would be doing this, so another major thing people are doing here is taking a major loss on their small cap all coins.
So these may be small caps that you’re just tired of holding uh. You don’t think they’re going to deliver, you don’t see them growing as much as other coins that you do want to jump into taking a loss on that uh does allow you to offset your capital gains tax for the year and then it does allow you to Reinvest what you did sell for into other cryptos. You do believe in more so for the long term, so um. This is the time when everyone’s doing it before the uh tax year is over. So, while there’s all of this type of trading going on, there’s also a lot of fear in the markets, we just had that fed meeting and crypto pumped a few percent immediately after that meeting uh.
So, after all, this type of trading for tax purposes starts to die down and we’re getting closer to the last few days of the year. I do believe a lot of people will be uh using those profits to jump back in to their positions in cryptocurrency. I think, right now, with that type of trading going on people are expecting a bit further of a dip before we do start recovering, and that does allow for everyone to have a great opportunity to pick up more cryptocurrencies if they are able to sell at a Higher price then buy back in lower, so i do believe um things are going to be looking better last few days of the year. Anything could happen in these markets, though. So just keep that in mind.
You should never take anyone’s word for it, no matter how experienced or how much uh knowledge they have in the space so um, i do believe. A hundred thousand dollar bitcoin is going to be happening still um very soon, so uh the bitcoin tests yearly moving average. As hundred thousand dollar bitcoin by christmas needs a small miracle, so while this is very unlikely at this point, it’s still possible. If there is just one major announcement like i said, that’s all it’s really gon na take to pump bitcoin to over a hundred thousand dollars. So the bitcoin stock to flow model – we’ve been talking about this a lot throughout the year and bitcoin has followed this pretty accurately here, uh going above the line and below it at various points, and this is by plan b on twitter, so bitcoin needs a small Miracle for a hundred thousand dollar christmas will i ditch the um stock to flow model.
If this does not happen, no, i actually like being at the lower bands. In fact, i published the model at the lower bands in march 2019, with bitcoin below uh four thousand dollars so um. This is a great example here how this is not going to follow exactly along the line at all times, but in the long term it does actually play out quite accurately. So historically, if you did pick up bitcoin anytime, it was below the stock to flow line that did end up working out great and ended up being the best times to buy bitcoin. We can see march 2019 and uh.
The covid market crash in march 2020 ended up being some of the best times to pick up bitcoin and other cryptocurrencies if you are holding for the long term. So uh it’s really hard to time this stuff accurately because you can always dip further, but as we can see, uh we haven’t peaked above the line in this bull market yet and as we can see how uh how much further above the line we did peak During the last couple of bull markets, here, bitcoin peaking at twenty thousand dollars in the last one before correcting into the bear market. There’S many other factors we have to consider as well like cobit, going on right now, new variants, all the printing that’s happening. All of the uh crypto laws and regulations that are coming into play all of this type of stuff does cause panic in the short term, but when you zoom out and you’re investing for the very long term, generally buying uh below the stock to flow line, uh You’Re gon na be in a good position, so if this bitcoin stock to flow model does play out somewhat, similarly to previous bull cycles, we will be seeing bitcoin uh peak far above the stock to flow line here between 200 to 300 000 bitcoin. But keep in mind that would be the very peak and uh that would have a major correction like it has previously, but going forward.
I don’t think we’re gon na have these extended uh bear markets here as well uh for three to four years. I think this is going to look much different in this section of time here and i do think bear markets will be temporary two to six months going forward with how much mass adoption and everything happening. I really don’t see extended. Bear markets happening like they have previous, so uh, i’m still confident in bitcoin breaking a hundred thousand dollars uh. Personally, i don’t hold a lot of bitcoin.
I find uh much better profit potential and uh small cap. All coins that do have big things happening and stuff, but those are much higher risk at the same time. So if you are newer to crypto, bitcoin and ethereum are definitely the safest bets for the long term. So personally, i have a very long term strategy in cryptocurrencies because of how heavily the markets are manipulated in crypto. You never know when things are going to crash or when things are going to go parabolic trying to time that 100 percent accurately is not going to work out all the time you may get lucky on a few calls, but no one is going to be accurate.
100 of the time in these markets, because we have no idea what’s going on with manipulation, uh regulations and other things that could pop up and uh really move the markets at any point. So once these markets get more established five to ten years out, we’re not going to see crazy pumps and we’re also not going to see crazy crashes like we see, but that also removes uh the huge profit potential as well. So that is one thing i like about these markets and why i invest in uh in these markets for the long term, we also have inflation and stuff kicking in very heavily with all the printing that has been going on over the last year and a half And i do think this is only going to continue with more uh covered variants coming out and everything i do think uh printing is going to continue, which is causing a major inflation at rates. We haven’t seen uh in decades, so this is a good post here. The euro has lost uh 30 of its value in just 22 years, uh good reason uh that does support holding bitcoin.
So as inflation kicks in more money is being printed and uh. Your purchasing power of your fiat currency is going down. You’Re uh, basically able to buy less goods for the same amount of money. Same thing with cryptocurrency you’re gon na be able to buy less cryptocurrency with that same amount of fiat currency in the long term uh, which is why i buy and hold for the long term so uh. This is a great picture here as well: mcdonald’s uh menu with prices in 1970 – not really that long ago, when you think about it, if you check out the prices now you get an idea of how quickly inflation is kicked in even uh, with things not being Too crazy, um and inflation not growing that rapidly over those few decades, uh still crazy difference in prices here, as you guys, can see quarter pounder 70 cents, uh big mac is 65 cents.
I do believe a combo meal at mcdonald’s for a big mac is uh over ten dollars at this point, uh just crazy. Looking at these prices, uh large order of fries 46 cents, uh hot apple pie, 26 cents, coffee 15 cents. So it gives you an idea of uh how much inflation kicks in it does creep in slowly but uh right now, it’s actually growing at a much uh more rapid pace than it has previously. So, being aware of this uh, you get a general idea of how well crypto will do in the very long term as long as nothing uh really horrible happens to the crypto space uh. Generally, it’s going to be a great investment for the very long term, which is why i continue dollar cost averaging and have a very long term vision for uh crypto, investing so uh.
Just keep that in mind in the short term. Anything can happen. We could see a hundred thousand dollar bitcoin by end of 2021. This could even crash even further uh below 40 000. Again, there’s no saying what’s going to happen with major events and everything looking at technical analysis can help.
You make more accurate predictions but uh when it really comes down to it. It’S not going to be accurate, 100 of the time, so just be aware of that. If you’re new to the crypto space get used to major dumps of 30 to even 50 at times and uh just have a good entry and exit strategy. You’Re gon na do uh great in the long term. So that’s it for this video.
Just a quick update here uh why, i think uh we will be seeing a general market recovery uh during the last week of 2021 and why i believe 2022 is gon na be great as well, so uh, i’m still very bullish and um. I definitely don’t think. We’Ve seen the peak of this current bull cycle looking at the stock to flow model, uh definitely supports that thesis so again, thank you guys. So much for watching and i’ll see you guys you