Melker considers it easy to seem like a “genius” in a bull market. In a bear market, even a good entry can cause losses.
The bear market is not only a moment to follow the number of losses that both investors and traders could endure. A bear market could also get labeled as a time when everyone has a moronic behavior. Instead, according to analyst Scott Melker, The Wolf of all Streets could get considered such with an ironic tone.
In his most recent newsletter based on the bitcoin market, Melker recalled his appreciation from a few months ago when he mocked that everyone is a genius in bull markets. Melker says this happens because the analyst alleges that it is straightforward to make money and appears to be making the right investment decisions when all the currencies are rising non-stop.
When Melker commented on everyone being “geniuses,” the market was in full swing and euphoric. By then, “even the most worthless coins” were going to the moon, so any investment seemed bright.
But now, when the whole market is red, the situation is very different. “Even a smart decision becomes a (temporary) loss in a bear market,” Melker wrote.
Not Everyone Behaves like a Dumb during a Bear Market
After analyzing how moments (returns and losses, as the case may be) can create the illusion that a trader or investor is good or bad at what they do, Melker concluded that the best strategy for most is to hold their active (hold) and wait.
The same analyst had recently commented on this line, as we reviewed in CriptoNoticias. He did so about the positions of Michael Saylor with MicroStrategy, Elon Musk with Tesla, and Jack Dorsey at Block (formerly Square).
For Melker, these entrepreneurs have made a mistake in their entry prices to invest in bitcoin. However, even their faithful critics would consider them in the long run. In that statement, he not only outlined a little bit of this logic that bull markets or bear markets kind of blur what investors do.
Also, there was a bullish prediction for BTC in the long term. In his comment, he echoed what the vast majority expect from cryptocurrency in the years to come: a significant bull rally.
Some users expect BTC to touch $100,000 soon. Others go further and believe that it will feel the million dollars in future cycles. Meanwhile, in the short term, Melker maintains that “everyone is a genius in a bull market and everyone is an idiot in a bear market.”
As long as demand reaches new peaks and purchasers are willing to pay more for the digital asset, any number could be accurate. For this reason, many specialists agreed that bitcoin would approach at least USD 100,000 by 2022, especially after it reached its last all-time high peak the previous year.
Another one who thinks that bitcoin will approach USD 100,000 is Mike McGlone, the chief strategist at Bloomberg Intelligence. From New York, the accountant Kate Waltman also shared the same thought with Time magazine.
By: Jenson Nuñez
