The crypto market is in full swing – a major change from the exuberance that started the year. One of the most important figures responsible for the first quarter euphoria was none other than the self-proclaimed Dogefather, Elon Musk. His sudden love affair with Bitcoin and other crypto assets sent valuations flying, and once he changed his tune, the trend changed.
Now, the Tesla and Space X frontman also features on the cover of Time Magazine as Elusive Person of the Year. But it could be an omen that the end of the crypto bull cycle is near – or potentially already here.
Time Magazine chooses Elon Musk as Person of the Year
Bitcoin and cryptocurrencies have been compared to all sorts of bubbles, from tulip mania to dot com booms.
While it could be argued that like tech stocks two decades ago, because crypto assets are making a comeback they are not in a bubble at all, a more dramatic “pop” could be on the way, depending on when. Unhappy Elon Cover of Musk Time magazine.
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Time Magazine selected Musk as the 2021 Person of the Year, which in the past has gone to names like Kamala Harris, Mark Zuckerberg, Barack Obama and Jeff Bezos.
In fact, it is the CEO of Amazon who, coincidentally, could be a sign that the peak of the crypto cycle is near.
The Jeff Bezos cover was the dot com bubble peak, what about Elon? | Source: TOTAL on TradingView.com
Dot Com Bubble: A Prelude to the Peak of the Crypto Cycle
In December 1999, Amazon founder Jeff Bezos was chosen as Time Magazine’s Person of the Year. Three months later, in March 2000, the Internet bubble burst.
Comparing the infamous internet-centric stock market bubble to the total crypto market capitalization provides a similar trajectory, which may or may not have run out of steam. Even if, like the dotcom bubble, the current December level were to hold, a peak just three months away in March 2021 would result in the worst correction Bitcoin and the rest of the cryptocurrency market have ever seen.
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But this is only if the peak is not already reached. Currently, Bitcoin is flirting with continuing lower to around $46,000 per coin. The chart above also shows roughly how much additional ground could be covered if the level does indeed hold.
Bull markets tend to end in euphoria, and with the market in full fear, the sentiment doesn’t quite match. The so-called “magazine cover” indicator has a delayed effect, as the content goes into production months before the publication date. Could this mean that the peak in April, when Musk was making headlines, was really the euphoric peak? Or has the market yet to see anything of what euphoria might look like?
Thoughts, @TommyThornton? The magazine cover indicator would suggest the top is there, but a repeat of a December cover and a March top might make sense. pic.twitter.com/YMPfYLeGDk
— Tony “The Bull” Spilotro (@tonyspilotroBTC) December 13, 2021
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