The reason we know it wont move down is that the FED is printing money and buying stocks. The thing to keep in mind with this is that crypto is correlated with the stock market.
Crypto has almost zero actual risk at this point in time because the stock market is being propped up super hard.
Yes, though there are still those that think the stock market may crash soon. It's up more than 40% from the lows and with the coronavirus starting to rear it's ugly head again we may see further disruptions to the economy.
Personally I think we break higher, but not ruling out the possibility of a dip either.
Its literally like betting against humanity. If the FED is printing huge amount of money then I seriously doubt we will actually see the stock market crash again. The only direction appears to be up unless the USD collapses in which case gold Silver and Crypto will sky rocket.
this is by definition a bubble, and bubbles always pop. I wouldn't be so confident. Stocks do crash hard and they are currently completely decoupled from reality.
A bubble backed by the FED during an election year. :)
One could argue they have been mostly decoupled since 2009... At that point it was no longer a free market. It was a "Big Brother FED will have your back" market and it has been that way ever since.
yeah that's true, I mean perhaps it's a new economic model that somehow will continue to work. But I have heard that in general all fiat currencies have failed when they get printed to infinity. I guess the only thing that has prevented a dollar collapse is that the US still has a strong economy and military. But with China knocking next door...
Yes, on a long enough timeline all fiat currencies have failed. The USD may have years left, decades left, or centuries left but it too will likely eventually fail.
Agreed. From that standpoint bitcoin could do well as a risk asset along with stocks and it could also do well as a save haven should the dollar collapse... I like it's chances over the next 2 years. :)