Colin’s Note: Today, we’re featuring an insight from colleague Sam Volkering.
He’s one of crypto expert Teeka Tiwari’s senior analysts over at Palm Beach Research Group. Sam helps keep him up to date with all the latest crypto projects and helps him identify new trends.
In this guest essay, Sam explains how we’re still in the early stages of the new crypto bull market cycle that kicked off this year… And shares an opportunity in the sector Teeka’s uncovered.
See, Teeka believes bitcoin will reach new highs in 2024… And he’s discovered an overlooked opportunity to profit as those new highs hit the crypto market.
After all, where bitcoin goes, so go the altcoins. And there’s a chance at life-changing gains on small stakes there if you know where to look.
Go here to catch Teeka’s briefing with all the details… Then read on below for Sam’s insight…
It’s Christmas Week 2017…
But instead of gift shopping at the crowded mall and going home to a glass of mulled wine, you’re obsessively hitting “refresh” on the CoinMarketCap website.
“CoinMarketCap thumb” feels like a real condition for crypto investors.
It’s like repetitive stress injury for your smartphone thumb – users are constantly bashing the refresh button to see if they’re richer or poorer that very moment.
Over the 2017 holiday season, there was a lot of “CoinMarketCap thumb” going around.
It wasn’t the season of jingling sleigh bells and falling snow. It was a time for the crypto markets.
The wild volatility of the crypto markets in December 2017 was at all-time highs.
As bitcoin touched $19,000 in early December – its all-time high at the time – by Christmas it had crashed to around $14,000.
I can tell you firsthand… For many, it felt like the sky was falling.
But compared to the $900 bitcoin had been at on Christmas 2016… Any price in five figures was a dream come true – if you invested early.
Of course, the mainstream media was shaking their finger at crypto believers – as if we’re in some kind of cult – saying that the bubble would burst… That it was tulip mania all over again… And like all good Ponzi schemes, bitcoin would collapse and go to zero.
But it never did.
By December 2018, the world’s largest cryptocurrency by market cap had fallen from the lofty height of $19,000 down to around $3,800.
As reported by CNBC at the time:
Bitcoin is now down 73% since the beginning of January. Twenty-four-hour trading volumes are down 56% since January 1, while the entire cryptocurrency market capitalization has fallen 80%.
The same article noted these price drops were due to, “crackdowns by U.S. regulators and a breakdown in key technical levels.”
Forbes summed up the mainstream media’s attitude toward bitcoin and crypto by the time Christmas 2018 rolled around with the headline: “Why Bitcoin Crashed, and Why It Will Crash Again.”
By the end of 2018, the atmosphere surrounding bitcoin was horrific.
The mainstream media was loaded with news articles about the “crypto bubble bursting” and bitcoin going to zero. Warren Buffett called bitcoin “rat poison squared” at the Berkshire Hathaway annual shareholder meeting.
Everything was moving against bitcoin and crypto… until you looked at the data.
The chart below shows the number of bitcoin wallets holding more than 0.1 BTC. It’s overlayed against the price of bitcoin.
As bitcoin’s price rises, so does the number of wallets holding more than 0.1 BTC. Shortly after the price begins to fall, so does the number of wallets with more than 0.1 BTC.
But then the “HODLers” – those holding on for dear life – pick up in numbers again.
By the end of 2018, even though bitcoin was cratering in price, the wallets continued to rise and were near the levels at the peak of the late 2017 market mania.
This helps to understand that what you hear and read about in the mainstream media is often wildly different from what’s really happening in the crypto industry.
The perceived atmosphere in a moment of panic selling doesn’t paint the real picture of what’s happening beneath the surface.
It’s in these periods of collapsing prices – the proverbial Crypto Winters – that real crypto people are made.
Forging Diamond Hands for 2024
When you’re under the most extreme pressure – from the media, family, friends, your portfolio’s value – that’s when you forge diamond hands.
(By the way, “diamond hands” is a popular phrase among crypto traders. It means to be unwilling to sell in a heavy bear market, holding one’s nerve until the next bull cycle when the market takes off.)
If you’ve been with us since the lofty heights of 2017, then you’ve experienced not one but two Crypto Winters.
You have fists of diamond – even if you’ve only withstood this past Crypto Winter.
Not only were 2018, 2019, and early 2020 lean times… They were downright nasty.
However, that’s exactly when the projects primed for the 2021 bull cycle were established, developed, and locked in for the mania to unfold again.
Not only did bitcoin demolish its previous all-time highs in 2021, but other cryptos exploded even more in value.
It was in this 2021 boom that we locked in some of the most historic gains ever seen.
For example, our worst-performing profit sell in our flagship crypto newsletter, Palm Beach Confidential, that year was Status Network (SNT) – which only delivered a 1,052% gain.
The best-performing was Neo (NEO) – 37,573% higher than our original entry.
This is why it’s so important to set yourself up during the periods before the bull market kicks off. It’s why forging diamond hands in a Crypto Winter makes you one of crypto’s elite.
And if you’re only just starting your crypto journey with us now, the good news is the next bull market cycle is only just beginning.
You’re still early… And that means you’re in a prime position as you build your crypto portfolio and we step into 2024.
The Bull Market Case for 2024
In 2024, we expect bitcoin to soar past $69,000 and reach new all-time highs. We expect Ethereum will be hot on its heels.
We expect this thanks to several crypto events on the horizon, such as:
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The approval of a spot bitcoin exchange-traded fund
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The bitcoin halving, which is scheduled for April 2024
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The eventual approval of a spot Ethereum ETF
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The adoption of bitcoin as a reserve asset by governments, central banks, and institutional investors
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Tokenization of equity, real estate, and other real-world assets on blockchains – a $16 trillion opportunity, according to Boston Consulting Group
These are just some of the big catalysts we see on the horizon for 2024. And as they play out, the market will soar higher.
What does that look like in practice?
Well, in the chart below, you can see how small the 2017–2018 peaks are compared to the 2021 peaks.
Now, picture those 2021 peaks looking equally as tiny as the entire crypto market booms to new all-time highs.
Not only will 2021 look like a small event… But the 2017 peaks will barely even register on the charts.
Right now, we’re starting to see signs of crypto moving into a full-blown bull market mania.
When it does, expect FOMO (fear of missing out) to kick in for those who haven’t yet added crypto to their portfolios or who were unable to forge their diamond hands in the last Crypto Winter.
Expect that inflection point to come thick and fast, and for this market to enter hyperdrive.
Let me be perfectly clear: The time to move isn’t as the market is rocketing up. The time to add to your portfolio is now.
Teeka’s #1 AI Coin for 2024
Daily editor Teeka Tiwari believes the next stop for bitcoin is new all-time highs. And as bitcoin goes, so go the altcoins.
And according to Teeka, who picked the #1 crypto six years in a row…
This AI coin that’s trading for less than a quarter could be the #1 AI trade of 2024.
Teeka has already given his readers 27 chances to make at least 1,000% gains in the crypto market…
Including multiple chances to turn $1,000 into massive six- and even seven-figure payouts.
And now he’s released the details on his #1 coin for the AI boom.
Just like in 2018, the media is clueless about what’s happening with crypto. So most people will be left in the dark.
But those of you with diamond hands – who seize the opportunity to buy when others are scared – have the chance to see life-changing gains.
Until next time,
Sam Volkering
Analyst, Palm Beach Daily