Fundamentals vs. NarrativesIn a highly connected system, the thing that spreads the fastest winssee: COVID, fake news, viral memesThe Internet is a highly connected system — the financial system is notThe latter has circuit breakers, markets/banks close outside business hours, and inefficiency is a featureBut crypto connects the financial system with the internet, and so makes the financial system highly connected as wellBut in a highly connected system, speed of spread dominates, so fundamentals start matt ...

the idea of a cycle as you know it is likely deadthe internet increased the connectivity of the world's informationcrypto turns information into value and value into informationhence crypto increases the connectivity of marketsas a result, reflexivity becomes exponentially more prevalentprices become more and more detached from fundamentalswhich means market participants have to reassess and recorrect constantly (ahhhhh im rotating)cycles speed up more and more until every week, and eventually, every day is ...

$600kplur daddy (@plur_daddy):What supercharges this run is memetic consensus around a high price target, leading to intense supply discipline. Everyone hoards their coins and forces buyers to be sloppy in the books, which further entrenches the idea price will keep going up. Reflexivity at its finest.This ...