Part 4/10:
He warns against narratives claiming that "this time is different," a phrase that has historically led investors astray. Instead, he advocates for recognizing these cyclical patterns to better align expectations and strategies.
The Importance of Diminishing Returns
Another aspect discussed is diminishing returns within each cycle. By analyzing Bitcoin's ROI (Return on Investment) from lows, the speaker notes that each subsequent cycle tends to produce smaller gains, a natural evolution in the market. The rhythm of these cycles typically involves an initial rally, a peak in Q4, and then a decline, which aligns with investor behavior and macroeconomic conditions.