insane – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sat, 06 Sep 2025 17:38:21 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.9 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 insane – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 The Nasdaq’s historic market cap surge is unprecedented and ‘insane’ https://earlybirdsinvest.com/the-nasdaqs-historic-market-cap-surge-is-unprecedented-and-insane/ https://earlybirdsinvest.com/the-nasdaqs-historic-market-cap-surge-is-unprecedented-and-insane/#respond Sat, 06 Sep 2025 17:38:21 +0000 https://earlybirdsinvest.com/the-nasdaqs-historic-market-cap-surge-is-unprecedented-and-insane/

The Nasdaq’s surge in value is breaking records, with a market cap relative to the U.S. M2 money supply that has hit a record 176%. Global markets commentator The Kobeissi Letter summed it up in three words:

“This is insane.”

The Nasdaq’s ‘insane’ market cap

As of August 2025, the Nasdaq’s market capitalization shatters the previous Dot-Com Bubble peak by approximately 45 percentage points. Simultaneously, the ratio of Nasdaq’s market cap to U.S. GDP has reached a historic 129%, almost double the highs of March 2000. These levels are raising both eyebrows and alarm on Wall Street.

M2 money supply encompasses all cash, checking deposits, and easily accessible savings, essentially, the “liquid” funds in the U.S. financial system. When the Nasdaq’s total value dwarfs this pool, it means that market valuations are galloping far ahead of the base layer of money underpinning the economy.

In previous cycles, stock market rallies were ultimately anchored by available liquidity. Surpassing the M2 money supply by such a wide margin illustrates an unprecedented disconnect between financial markets and real-world cash or credit growth.

Comparisons with the Dot-Com Bubble are apt: in 2000, the Nasdaq’s meteoric gains ended with a collapse when excess speculation far outpaced money supply and economic fundamentals. Today’s ratios, however, are well beyond those former highs, stoking fears of an even larger asset bubble.

Implications: What could happen next?

When stock valuations become untethered from underlying money growth, markets are more susceptible to sharp and painful corrections. As history showed after the Dot-Com peak, sentiment can turn quickly, and the subsequent cascade can erase trillions in market value overnight.

Today’s surge is heavily concentrated in a handful of giant tech firms, especially those leading AI innovation. This means a downturn in just a few names could spill over into the entire market, intensifying volatility.

With stock values so far above liquid cash levels, any shift in risk appetite, interest rates, or a tightening of credit could drain liquidity from equities fast. Such mismatches magnify systemic risk, as market participants scramble for cash in a sudden downturn.

Central banks may find themselves pressured to inject more liquidity or risk triggering a deep correction. However, with M2 already at record levels and inflation concerns still present, policy options are limited.

Broader implications for Bitcoin and crypto

A sharp correction in tech equities often sparks a search for non-correlated assets. Bitcoin, with its fixed supply and decentralized nature, is frequently seen as a “digital gold” hedge against both equity bubbles and financial system stress. After major equity shocks in the past, Bitcoin and gold have often seen inflows as alternative stores of value.

Crypto is not immune to market-wide shocks, however. During the COVID crash and after the Dot-Com bust, investors also sold Bitcoin and other risk assets in the initial wave of panic. Thin crypto market liquidity can amplify these sudden swings.

If a market meltdown forces funds and institutions to raise cash, there could be short-term selling pressure for Bitcoin and crypto, especially given recent inflows and speculative positions in ETFs. However, each major crisis tends to inspire renewed interest in alternative financial systems and decentralized assets in the recovery phase.

As the Nasdaq outpaces the real economy, regulators are watching for imbalances. Both securities and crypto market rules could be tightened in response to market volatility or perceived excess.

Never before has the market value of America’s top tech stocks so dramatically outstripped both the money supply and the size of the economy itself. Investors should proceed wth caution and remember the lessons of bubbles past.

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Ethereum Looks Ready To Break Out Of 4-Year Consolidation, Analyst Says Price Will ‘Go Insane’ https://earlybirdsinvest.com/ethereum-looks-ready-to-break-out-of-4-year-consolidation-analyst-says-price-will-go-insane/ https://earlybirdsinvest.com/ethereum-looks-ready-to-break-out-of-4-year-consolidation-analyst-says-price-will-go-insane/#respond Fri, 16 May 2025 16:40:08 +0000 https://earlybirdsinvest.com/ethereum-looks-ready-to-break-out-of-4-year-consolidation-analyst-says-price-will-go-insane/

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Ethereum is again looking bullish following its gains of over 17% in the last seven days and the break above $2,500. Analysts have provided a positive outlook for the second-largest crypto by market cap, predicting that its price could soon go parabolic after an extended consolidation period

Ethereum Primed To Break Out As Price Goes Parabolic 

In an X post, crypto analyst Mister Crypto noted that Ethereum has been consolidating for four years and that the longer the consolidation, the bigger the pump. He added that he is extremely bullish, indicating that a breakout was imminent. His accompanying chart showed that ETH could reach a new all-time high (ATH) on this breakout. 

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Crypto analyst Skyrexio also asserted that Ethereum will go “insane” soon. In a TradingView analysis, he stated that Bitcoin’s dominance is about to finish the uptrend, which can give ETH a second life. The analyst added that the bounce is already happening, although Ethereum’s price is struggling to break through $2,600. 

Ethereum
Source: Mister Crypto on X

He admitted that Ethereum could experience a small correction in the upcoming week but assured that the final uptrend has been confirmed. Analyzing ETH’s weekly chart, Skyrexio opined that the crypto is on wave 3 of the Elliott wave structure. The analyst revealed a green dot on the Bullish/Bearish Reversal Bar indicator, which he claimed is a huge confirmation of the bull run. 

Skyrexio stated that the target for wave 3 is the 1.61 Fibonacci at $6,500. He told market participants to consider the second scenario, when BTC dominance will reach 67% and ETH will retest the low. Whales are actively accumulating ahead of a potential price surge. Crypto analyst Ali Martinez revealed that nearly 1 million ETH have been withdrawn from exchanges in the past month. 

ETH Has Broken Out Of The 3-Year Downtrend

In an X post, crypto analyst Mikybull Crypto revealed that Ethereum has broken out of the 3-year downtrend. He added that from now on, ETH will outperform BTC till the cycle peak. His accompanying chart showed that the altcoin could rally to $9,000 before the end of this market cycle. 

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In another post, he reiterated this target while outlining between $8,000 and $10,000 as his targets for Ethereum in this cycle. He noted that ETH is looking to pull 2017 vibes, which is another reason he is confident that the crypto can eventually rally to as high as $10,000. Crypto analyst Titan of Crypto also predicted that the Ethereum price could soon enjoy a parabolic move, rallying to as high as $4,000. 

At the time of writing, the Ethereum price is trading at around $2,587, up in the last 24 hours, according to data from CoinMarketCap.

Ethereum
ETH trading at $2,612 on the 1D chart | Source: ETHUSDT on Tradingview.com

Featured image from Pixabay, chart from Tradingview.com

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