(Source: https://www.trinitybuildingsystems.com/education-center/price-of-lumber-decline-2021/)

It's not just Bitcoin and Crypto that's getting rekt

While everyone is freaking out over the drop in bitcoin and attributing it to the China news, there is likely a bit more to the story...

We've seen somewhat of a rotation for weeks now of the riskiest of the risky getting sold off.

It started with the tech wreck in the stock market where the stocks with the highest PE multiples came down some 40 to 60%.

Then it rotated into SPACs.

And now it's in bitcoin and crypto and even commodity prices.

Lumber prices are down over 30% in the last 5 days.

So, this isn't a bitcoin specific story, it's a story where everything that was way up is getting sold off.

Could this be related to a spike in capital gains tax? Yep, probably...

It's a situation where we've seen rolling profit taking in the highest flying assets.

I suspect it may not quite be over yet but we are very close to the end.

There is a ton of liquidity out there though and I expect once we get past this period it's going to be time to fly again.

Which means...

Get that spare change ready and do some nibbling on the dips!