The crypto market is in turmoil – a major change from the exuberance that kickstarted the year. Elon Musk, the self-proclaimed Dogefather was one of the key figures behind the Q1 euphoria. Valuations shot up due to his sudden obsession with Bitcoin and other cryptocurrency assets. The trend changed once Musk changed his mind.
Time Magazine has named Space X and Tesla’s frontman the elusive person for the year. But it could it be an omen that the end of the crypto bull cycle is near – or potentially already here.
Time Magazine selects Elon Musk Person of The Year
The Bitcoin and cryptocurrency bubbles have been likened to everything from the dot-com boom to tulipmania.
While it can be argued that like tech stocks from two decades because crypto assets make a comeback, they aren’t actually in a bubble at all, a more dramatic ‘pop’ could be on the way, according to the unfortunate timing of the Elon Musk Time Magazine cover.
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Time Magazine named Musk the 2021 Person of the Year. This award has been awarded in the past to people like Kamala Harris and Mark Zuckerberg.
In fact, it’s the Amazon CEO that coincidentally could be a sign that the crypto cycle peak is near.
Jeff Bezos was on the cover of the dotcom bubble peak. What about Elon?Source: TOTAL at TradingView.com | Source: TOTAL on TradingView.com
Dot Com Bubble: The Prelude To the Crypto Cycle Peak
In December 1999, Jeff Bezos, the founder of Amazon was named the Time Magazine Person of the Year. The dot-com bubble burst three months later, in March 2000.
The famous, internet-centric stock market bubble and the entire crypto market capital provide a comparable trajectory. However, it may have lost steam. If the December level were to remain the same, it would be a similar trajectory to that of the internet-focused stock market bubble. However, the peak in March 2021 is only three months away and this could lead to the most severe correction Bitcoin or the rest the cryptocurrency markets have ever experienced.
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But that’s only if the peak isn’t already in. Bitcoin currently flirts with the possibility of a continuation to its downside, at $46,000 per coin. If the price holds, then you can see how much additional ground is possible.
Bull markets tend to end in euphoria, and with the market in full blown fear, the sentiment doesn’t quite match. The so-called “magazine cover” indicator has a delayed effect, because the content goes into production months ahead of the publishing date. This could mean that Musk’s April peak was not the euphoric peak. Is the market still not sure what euphoria might look like?
Thoughts, @TommyThornton? The indicator on the magazine cover would indicate that top is in but it could be a repetition of December’s cover or March top. pic.twitter.com/YMPfYLeGDk
— Tony “The Bull” Spilotro (@tonyspilotroBTC) December 13, 2021
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