Question No 1:
Bitcoin Is Way Off Recent Highs. Is It Too Late to Invest?
by Ian King
No, it’s not too late at all! In fact, with crypto off recent highs, now is actually the perfect time to enter the market.
Because in the crypto markets … what doesn’t kill them makes them stronger.
Bitcoin is a great example: It “crashed” 30% six times in 2017. But each of these pullbacks were followed by an increase of: 76%, 237%, 183%, 165% and 152%.
Anyone who stayed on the sidelines last year, worried it was too late to benefit, missed out on those rallies. But that’s fine — there will certainly be more to come, even after this recent volatility.
We’re still in the “liftoff” phase, as I like to say.
Although the crypto market has fallen significantly from January 2018’s $800 billion, the pace of real-world adoption and innovation steadily marches forward, which is what makes cryptos one of the most exciting investments in recent history.
As that long-term trend continues, pullbacks and crashes are just par for the crypto course.
In fact, while you may have seen the headlines that bitcoin was up 1,300% last year or about 80,000% in the past five years, the truth is, pullbacks of 50% or more have been pretty much standard since bitcoin launched in 2009.
You can see in just the last year:
So yes, in January 2018, bitcoin plunged around $6,000 as the S&P 500 shed nearly 12% before finding a near-term bottom.
The weakness in stocks accelerated the selling in the crypto markets. The cryptocurrency lost nearly 70%, dropping from its early December high near $20,000. That understandably caused some people to worry.
But, as you can see, the uptrend is intact. In fact, in early mid-February, bitcoin went from just under $7,000 to over $10,000 again.
So my big piece of advice is to not let this overall volatility shake you. Bitcoin takes seven steps forward, two steps back, seven steps forward, two steps back. Every two steps back is heralded as “the end” by Wall Street pundits. But every time bitcoin falls, it bounces back to regain lost ground, and then it surges even higher.
Don’t let volatility make you worried about the long-term potential. This is normal.
That means the crypto market is not necessarily for every investor. But the market clearly offers some great returns if you can stomach the violent roller-coaster ride.
That’s why I say don’t listen to the financial media when it jumps on the opportunity to declare “the end of bitcoin,” excitedly exclaiming another round of crypto obituaries. They are missing the big picture when it comes to bitcoin and cryptocurrencies.
For those still worried about the market, however, I’ll leave you with this:
While bitcoin is constantly claiming the news headlines with its dramatic moves, there are three key factors that you as an investor need to keep in mind.
- The crypto game has changed. More and more corporations and governments are pouring money into blockchain and cryptocurrencies to better utilize and understand them.
For example, EU Digital Commissioner Mariya Gabriel said this in February 2018: “We have been funding blockchain projects since 2013. The total support will soon reach 100 million euros ($124 million).” She was citing a digital health information project called, My Health My Data, that encourages patients to share their data securely.
This type of interest in crypto assets is going to help keep bitcoin bouncing back and climbing higher.
- Trading is becoming easier. As more brokerage firms and different avenues open up for investors to gain access to cryptocurrencies, the more money that will pour into this market. Just earlier this year, Robinhood announced that it would start offering access to cryptocurrencies. I think that is only the beginning.
- Wall Street is still largely on the sidelines. The major financial institutions have been unable to play in the crypto market up until now, and that’s a huge chunk of money that could help to power bitcoin and other cryptocurrencies significantly higher.
So that’s why I’ll keep saying that the smart investors should be getting in now before the market takes off even further.
To learn more, be sure to visit www.cryptoprofitsummit.com daily to see pre-webinar previews and posts.
Founder of the Crypto Profit Strategy