I want to talk to you about a startling similarity that I’m seeing in the cryptocurrency market and the technology...

I want to talk to you about a startling similarity that I’m seeing in the cryptocurrency market and the technology market of 1994 to 1995. Right now, we’re looking at the crypto markets for the last three months. It’s been a very, very rough three months. We’ve gone from this market cap of above $800 billion to around $300 billion right now. It really reminds me of what I went through in 1994 to 1995. This is when the Nasdaq had had a huge run. It ran up to 804 and then just crashed down to 702. And it wasn’t a pretty crash. I mean, this was just kind of a long, drawn-out situation.
Now, what was interesting about 1994 to 1995 was that, even though the market was acting as if the opportunity in tech was over—very similar to the way this market is acting right now—what was interesting is that while stocks were going down, private investment and venture capital (VC) dollars were going up and they were going up a lot. So, between 1994 and 1995, the whole Nasdaq got crushed. Companies like Oracle dropped like 50–60%; it was a blood bath. But you saw this huge increase in VC money coming into the market, like 30%. And $8 billion back in ’95 was a lot of money.

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The reason why I bring this up is that we’re seeing something similar take place in the crypto market. Right now, we’re on pace to triple the amount of VC investments in crypto than last year, even though the market is going down. This is what we call a “contrarian indicator.” Generally speaking, VC money is very, very clever money, so normally when you see a market collapse, VCs run for the hills. But just like in ’94 and ’95—when the market did collapse and it was a horrible sell-o—we’re actually seeing VC money increase. So right now, VCs are on track to do 900 deals this year in the space, and last year, they did less than 300.
The pace of deal-making and the pace of money coming into the market is actually increasing, and it’s improving. That is an incredibly bullish sign for the long-term value of the market, because again, once you got through this 1995-kind of debacle, you just had this massive bull market take place. Actually, ’95 was really the last year that you could buy tech stocks on the cheap before they just absolutely boomed. So, this is really exactly what I think is going on right now in the cryptocurrency market… This could potentially be the last major opportunity you have to buy cryptos cheaply.

I'm from 2034 and looking back on the BTC chart it played out almost exactly like you describe.

Hey OP this is a great post, I really appreciate the insights as a younger dude who didn’t see that happen live with any understanding. When you say VCs are on track to do 900 deals, you mean crypto related deals? Sorry if dumb question I just wanted to be clear and was wondering if you had a source for that 900/300 deals

Excellent writeup, and I completely agree, this is a great opportunity to get into the space. Anyone who isn't incredibly bullish on crypto's long-term just isn't paying attention.

But the circle on your chart isn't from 94-95

Nice larp i want to believe
Checked op this makes a lot of sense. What’s your portfolio like?

Well spotted user

That chart looks almost exactly like the BTC chart. Only that we're not where the circle is but around 2001.

lol copied and pasted pajeet tiwari's analysis word for word.

fyi, the crash of 94 to 95 is a 13% crash. we experienced a fucking 75% crash. he is getting worried that he will go out of business