It’s been a wild week for the markets… and crypto is no exception.
Over the past week, Bitcoin dropped from nearly $70,000 to under $50,000 before rebounding to around $60,000.
But don’t let the volatility scare you away from the crypto market…
The truth is, cryptocurrency represents one of the best opportunities of our lifetime to create generational wealth…
And the selloff creates an incredible buying opportunity.
In fact, there’s never been a better time to invest in crypto.
Today, we’ll explain why. But first, let’s look at what caused the selloff.
The crypto selloff has nothing to do with fundamentals
This past week, the “Japanese yen carry trade”—an investor favorite for years—unraveled.
If you’re unfamiliar with the trade: While the rest of the world has been hiking interest rates to beat back inflation, Japan has kept its rates near zero to spur economic growth. As a result, investors have been able to borrow yen at super cheap levels… and invest that yen into more profitable opportunities—including crypto.
But this week, the Bank of Japan raised interest rates (for the second time since March)… basically eliminating the leveraged trade.
When leveraged positions unwind, it forces investors to sell assets to cover their positions.
The forced selling sent the markets cratering. Crypto, a highly volatile and speculative asset class, saw particularly sharp declines.
But despite the sharp selloff, crypto is showing resilience. It’s already recaptured a significant portion of what it lost…
And it has way more room to run—thanks to several catalysts on the immediate horizon…
These tailwinds will send Bitcoin surging
Despite recent volatility, we’re on the cusp of another explosive growth phase in crypto. Here are several reasons to consider jumping in now:
The recent Bitcoin halving: Every four years, Bitcoin mining rewards are cut by 50%, slowing the supply of new coins entering the market.
Historically, Bitcoin surges in the 12–18 months following the halving events. For instance, in 2020-2021, some assets saw returns of over 2,000% in just one year.
Institutional adoption: Major financial institutions are increasingly embracing cryptocurrencies. For example, Morgan Stanley has just enabled its 15,000 financial advisors to offer Bitcoin ETFs to clients with over $1.5 million in assets. This flood of institutional money will likely drive prices to new highs.
Bitcoin ETFs: The approval of Bitcoin ETFs in January 2024 has made it easier for individual investors to gain exposure to cryptocurrencies. What’s more, these ETFs have shown resilience during the recent market downturn.
These are just a few of the factors driving cryptocurrency higher…
During his recent live event, Crypto 2024: 5 Critical Catalysts, Frank broke down these tailwinds in more detail. He also explained how a Trump presidency would be great for crypto… why Bitcoin could surge to $100,000 in the near term… and how he’d play the situation.
Savvy investors are positioning themselves for potentially life-changing gains. Remember, early Bitcoin adopters turned pocket change into millions. While past performance doesn’t guarantee future results, the current market conditions echo previous cycles that led to massive returns.
The bottom line
The recent sell-off has brought crypto prices down from all-time highs—offering an enormous discount on quality assets.
The potential rewards of crypto investing can be astronomical. Act now, before the next crypto bull run leaves you in the dust.
Your future self will thank you.
