This may well be controversial, but I think now is the time to start considering selling crypto. Everyone is talking about the great price rises, both in Bitcoin and alt coins. I agree, the recent price rises have been lovely. However, the data seems to indicate that the entire basis for the recent rises is due to Government stimulus packages in response to the corona virus.

Here is a video outlining the link between Government stimulus and recent rises in the stock market.

And here is another Youtube channel talking about the stimulus payments going direct into shares and crypto.

So I am left wondering, what happens when the stimulus packages run out, or are wound back? As the world economy is going very slowly at the moment, and there appears to be no quick fix over the horizon, I do not think the current highs of the world's stock markets and crypto markets are sustainable. For stocks to be sustainable at their current highs, their needs to be high levels of economic activity. If anything, economic activity is going down as many countries are having second and third waves of the virus.

Crypto is the same. There needs to be a high level of economic activity for crypto to be used, a high level of regular transactions. Currently, there is not a high level of crypto for transaction purposes, more a case of a lot of people buying crypto and holding it. This may reverse quickly when the stimulus tapers off, and many people around the world do not have jobs, so they will have to start to sell their crypto holdings to pay their bills. I suspect the sustainable price of Bitcoin is not at its current levels.

I look forward to your comments and thoughts below :)