💡#beginnertrader ‘s speculations about bull run. Part 2. 📃
While I’ve argued that desperation may spark a bull run, I’m thinking about an alternative scenario where FOMO might actually lead to a powerful price surge. 🪙 If there’s a broad consensus among market participants that crypto assets are significantly undervalued, we could see a sharp rise—potentially 40-50%. 💵But here’s the catch: what events could drive this consensus?
It might be less obvious, but situations like central banks 🏦 struggling to manage inflation, currency devaluations, or major financial institution failures could do it. For example, recent news about US banks facing huge unrealized losses hints at underlying vulnerabilities, though I’m not speculating on the consequences of that particular situation. If the market starts to lose faith in traditional financial systems, this could lead to a major influx into crypto.
So, while this scenario might appear less scary at first glance, is it really? A significant crypto surge driven by these factors could indicate a financial crisis on the scale of 2008. FOMO may fuel the rally, but the underlying cause might be far more unsettling.
Tell me, that I’m wrong 😑
