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:

1. 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. &

2. 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. &

3. 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.