The possibility of a bear market in Bitcoin is now invalidated. BTC against the U.S. dollar snapped through $8,600 so fast that the media didn’t even have time to report on it; they were still stunned that Bitcoin had broken through $7,500 and then $8,000!
The overnight futures market, which is more sophisticated and informed than the daytime retail market, is sending us a message right now. It’s loud and clear: a Bitcoin bounce is coming and $8,000 will be ancient history.
In a time when China is reiterating its pledge to crack down on cryptocurrency exchanges while simultaneously promising to develop its blockchain technology, the key is to monitor your sources of information and distill the news down to what’s real and what’s just somebody’s opinion.
The U.S. Federal Reserve isn’t good at doing much, but they’ve proven that they can do one thing really well: print up fiat money.
While the government – which normally serves as the ultimate opponent of innovation – continues to cling to its fading and failing fiat currency and fractional lending system, American private enterprise is doing what it does best: it’s bringing new technologies to the public and encouraging ingenuity, particularly through money that’s decentralized, borderless, and ultra-efficient.
Right now, the difference between stocks and cryptocurrencies is striking – and tragically, uninformed investors are piled into the wrong one.
China’s headlines are dominating crypto again.
You’ve already seen what the government has done to Facebook’s Libra Coin, which won’t come out for a long time and at this rate, might not happen at all.
I love it when an asset class gets cheaper because of overblown fears; that’s when opportunities happen. If it weren’t for the haters and the doubters, nothing would be mispriced and the markets would come to a standstill.
Full disclosure: Bitcoin investing isn’t for wusses, plain and simple. If you can’t handle 5% and sometimes 10% daily moves in either direction, you might as well put your money in U.S. Treasurys and pray that bond yields aren’t pushed to zero in 2020.