Think crypto is getting overbought? Why this bull cycle probably isn’t over in three quick facts.

I was getting concerned that the crypto market has become too frothy and overbought and the start of a bear market may be impending. However, three important facts (IMO) made me strongly reconsider:

The entire crypto currency market cap of around $2 trillion is still less than the market cap of Apple, just a single company, which currently has a $2.5 trillion market cap. Granted, Apple is one of the world’s largest corporations, but the fact that the entire crypto industry is still valued at less than a single company is incredible.  

Continuing Central bank money printing. Almost all of the world’s central banks are currently continuing to debase their currencies through quantitative easing (for those that don’t know, this is just a fancy name for creating money out of thin air). The US Federal Reserve is currently adding approximately $120 BILLION every month to the currency. That’s $1.44 trillion a year. And this is just one central bank. The combined currency creation of all central banks in the world is much, much higher. During the last crypto bull of 2016-17, this element was not in play. In fact, back then the Federal Reserve had stopped QE and was increasing interest rates.  

Institutional interest in crypto. It’s not a secret that since quantitative easing money printing began in 2009, a large proportion of that newly created money has flown into the stock market, which is why stocks are in a raging bull market even during a pandemic. Now that institutions are paying more attention to crypto, that money will also flow here.  

So yes, while the astronomical increases in almost all coins since 2019 may make it seem like you’re late to the party, it’s IMO very possible that this bull market has a lot further to go.