The Crypto Markets Will Turn Bearish This Summer - Here is Why

Crypto (and stocks) is in a bubble right now due to two things:

• Excessive Quantitative Easing by the Fed and EU central bank.

• Consumers being limited in their choices because of COVID.

COVID is the greatest thing that ever happened to stocks and crypto.

People are scared to leave their home - but thanks to QE and stimulus checks, they still have money to spend.

When you don't wanna leave your home, and most local businesses are closed, what do you spend your money on?

Stocks, crypto and Amazon.

Sure, you still need to buy groceries, and you still need electricity and water, but the money spent on anything local (barbers, clubs, gyms, beauty salons) is way down. Money spent on travel is also way down.

What happens when everyone is vaccinated and the society reopens for good?

You go outside again. You spend your money at local businesses. You spend your money on travel.

You don't spend your money on stocks or crypto anymore.

The penny stock bubble we see right now is only happening because people have nothing better to spend their money on.

Once society reopens, there will be no money left for things like GME and AMC.

The Fed can keep printing money and sending out stimulus checks.

Post-COVID, however, these checks aren't gonna be spent on stocks or crypto. They are gonna be spent on local businesses and travel instead.

I don't think there is necessarily gonna be a crash, but I do think we are in for a prolonged bear market.

The bear market will start this summer, when people are vaccinated and society reopens.

I will follow the COVID situation very closely, and time my exit accordingly.