Buy Their Pain?

Louis Sykes
June 22, 2022

From the desk of Louis Sykes @haumicharts

There's a lot of pain out there.

It's not just retail. Some of the most sophisticated crypto funds on the planet are blowing up. Lives are getting destroyed.

But here's a quick reminder: The best trades come when others are forced to exit and are at their lowest points.

Is it a nice way to make a living?

No. But you have to deal with it. Otherwise, you end up being on the wrong side.

The ETF providers in their infinite wisdom seem to be feeding on this sentiment, with the first short Bitcoin ETF being launched in the US this week. This feels awfully reminiscent of October, when the first Bitcoin futures ETF was launched.

Weeks after, the market put in its last top.

So, is this going to be like those other times?

It's pretty hilarious when you look back at recent years to see how the market did a complete U-turn on these significant launches.

And then, of course, we have our favorite contrarian indicator of all...

Journalists.

Bitcoin shortly peaked after this beauty:

What's it going to do after this gem?

It's clear there's a lot of pain out there.

Across the board, Bitcoin market participants are at or approaching high historical pain thresholds.

Periods like these have shown themselves to be advantageous positions for long-term investors to stack sats.

Will this time be any different?

Buy their pain?

Crypto members, also see our latest letter: Assessing an Asymmetric Opportunity to Dollar-Cost Average

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Thanks for reading, and please let us know if you have any questions!

Allstarcharts Team

 

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