As you likely already know, crypto markets have slumped lower over the past few days.
Bitcoin’s trading at around $5,595 as I write this, and altcoins are down similarly. Things have stabilized a bit over the last 24 hours, but we could be in for more selling over the coming weeks. As I often say, every move in crypto is exaggerated – both up and down.
If you’re buying the dip, I do recommend doing it in phases. Spread out your buys over six months or longer. Crypto markets are unpredictable and need to be thought of as long-term bets.
Unfortunately, this type of sell-off is just a thing that happens in crypto. I try to ignore it and think long term, because we have a number of upcoming catalysts that have the potential to reverse the downtrend, including…
- Bakkt launching in December
- Fidelity Digital Assets launching in 2019
- Inevitable fiat/debt crises occurring
- Bitcoin halving in May 2020
- Infrastructure upgrades happening (scalability, exchanges, custody, sidechains).
The Fidelity launch is one potential catalyst to keep a close eye on. This is one of the most reputable financial firms in the world, which manages $7.2 trillion in assets, making a big public bet on crypto. When this operation is up and running, institutions will have an extremely reputable way to get into the crypto market.
Don’t get me wrong, the Bakkt news is big too. It’s backed by some really large financial players. But Fidelity is on a different level in terms of size and reputation.
In short, nothing’s changed about our investment thesis. Now is simply a time to buckle down and perhaps focus on your traditional portfolio management. The next few years are going to be challenging in many markets. By comparison, crypto is far easier, assuming you simply buy and hold.
We’re recommending you do just that: Sit tight and hold.
Good investing,
Adam