Part 1/7:
The Credit Cycle's Shift and Its Impact on Bitcoin
The credit cycle has recently undergone a significant shift that may have profound consequences for Bitcoin investors. Understanding the implications of this change is crucial for those holding Bitcoin or other assets, as it could dictate whether the price soars or plummets in the near future.
In essence, the credit cycle acts like the economy's heartbeat, alternating between periods of expansion and contraction. Historically, credit cycles have influenced markets since the advent of money, with their formalization tracing back to the 17th century. The cycle can be likened to a roller coaster, where the economy climbs during good times fueled by abundant credit, followed by a steep decline as lending tightens and asset prices falter.