Turn Crypto Pain into Profits

The headlines scream of pain…

A Bitcoin bloodbath.

A crypto collapse.

Well, those headlines are nothing new.

Let’s get real…

The world’s largest cryptocurrency hit new all-time highs of $108,268.45 on December 17.

Today – a mere three days later – Bitcoin is trading around $97,000.

Yes, that’s a swift 10.4% decline in less than a handful of days.

And if it was any other asset, it might be worth panicking over.

But we know here that these types of swings are common in crypto.

Investors are prone to short memories. But remember, we had similar drops or worse in April, June, and August of this year.

These sharp declines, they’re gifts from the crypto volatility gods. Opportunities to add a little bit more to your position at discounted prices.

I’ve been urging investors to grab a stake in Bitcoin for going on two years. We had our buy-up-to price of $25,000 in 2023, which was later raised to $60,000.

We knew the bull run was coming due to the Bitcoin reward havling in April.

We’ve been preparing for this!

And it’s an asset I’ve been saying should be part of every investor’s portfolio since 2016.

But this year, that typical crypto bull has been giving an extra shot in the arm… And that means, if you haven’t already – for whatever reason - you need to be prepared for the next leg higher…

Seasonality, “The Crypto Don” and More

A few weeks ago, I outlined Bitcoin’s recent meteoric rise post-election. And the seasonal upswings we see in the digital currency.

I also wrote about why “The Crypto Don” is a tailwind for the sector.

In November alone, cryptocurrencies added $1.2 trillion in market capitalization as Bitcoin raced 38% higher.

That’s in one month.

Of course, that was followed this week by a record $680 million in outflows from Bitcoin ETFs when cryptos rolled over.

But guess what?

Bitcoin is still in positive territory for December.

Despite the finger-wagging and panicked headlines, cryptos are doing precisely as they’ve done for years. And right in line with our expectations for 2024.

But this is a moment to shift gears.

You see, everyone is hyper-focused on Bitcoin and it breaking through big round numbers – like $100,000. We’ve been positioned for that. But keep in mind there are other flavors of crypto… and I’m not talking about silly money grabs like Hawk Tuah’s Girl catastrophic choke.

I mean, real, actual, viable cryptos.

Remember, where Bitcoin goes, so goes the rest of the digital currency ecosystem… both up and down.

When Second Place Should be First Choice

Year-to-date, Ethereum, the world’s second-largest cryptocurrency has returned less than half of what Bitcoin has done.

But over the last month, the tables have turned.

Since November 21, Ethereum is up 10.3%.

Meanwhile, Bitcoin has gained 3.2% during the same stretch.

And that’s after Ethereum has tumbled more than 16% since December 17 (a 50% larger drop than Bitcoin).

Of course, what we tend to see in crypto is lagging bullish behavior.

Bitcoin will begin its run. And in its wake, smaller cryptos will begin their own bullish moves. But as Bitcoin becomes increasingly expensive, pricing out smaller individual investors, these investors move down the rungs on the ladder.

They’re on the hunt for cryptos that haven’t reacted to the market’s momentum yet.

It’s the exact same behavior we see in equities.

For instance, Nvidia (NVDA) skyrockets in price because of artificial intelligence demand. Shares become too expensive, so investors start trading Super Micro Computers (SMCI), then Astera Labs (ALAB), Credo Technology (CRDO), and the list goes on.

Shares of those smaller companies start outperforming the original darling that got too expensive.

This isn’t groundbreaking or unique behavior. But it’s worth a reminder.

So, Bitcoin is charging. But Ethereum is accelerating.

As is XRP, which has catapulted to the fourth largest crypto on the planet.

Suddenly, all those smaller cryptocurrencies that were underperforming Bitcoin, will start outperforming.

Investors are always hunting for opportunities for their capital to go further. And that means buying up lower-priced cryptocurrencies… particularly on these pullbacks.

Keep in mind, 2024 is merely the beginning.

We’ve been positioning ourselves in Bitcoin for nearly two years.

But this is the time -if you haven’t already - to switch your focus to smaller coins (but avoid the frauds).

In 2021 – the second year of the last two-year crypto bull run - Bitcoin rose 60%.

That same year, Ethereum gained 399.2%...

XRP gained 278.2%...

And Dogecoin skyrocketed 4,159%!

I’ve said it before, and I’ll say it again (and probably even more in the future) …

Bitcoin has been the best-performing asset for a decade and a half.

And not by a little… but by astronomical sums.

It’s returned more than ten times what Nvidia has.

That means every investor’s portfolio MUST have some exposure to crypto.

That can be through tokens, the new array of exchange-traded funds, or even shares of miners.

Investors who don’t will be kicking themselves once again. Not only for the boat they missed in 2024… but also in 2025.

Averaging down this week,

Matthew