VIDEO: The Perfect Storm: Why Now Is the Ideal Time to Invest in Crypto
Welcome to Crypto Investing Daily. July has been a wild month in the crypto market and many things have changed recently. I have a short one for you today, focusing on what’s been going on in the market that has me so excited right now. As always, watch the video for my full analysis, or read on for a summary.
Why Now is the Time to Invest
If you’ve been sitting on the sidelines or waiting for a certain time to invest in the crypto market, or if the correction this spring and summer has deterred you, I want to urge you that right now is the time to get into the market. Today’s video is all about why I believe this is perhaps one of the best market setups I have ever seen in my seven years of crypto investing and why this might be the last great Bitcoin (BTC) bull market.
Seasonality of Bitcoin
The first factor contributing to the current market setup is the seasonality of crypto, particularly Bitcoin. As I discussed in a recent article this month, Bitcoin (BTC) always performs best as we head into the fall, specifically in Q4. Historically, October, November, and December are when Bitcoin rallies start to take hold, often peaking in November or December. According to the four-year cycle theory, while we wouldn’t be topping this year, we are likely to see a significant market jump as we head into Q4 of this year.
BTC is up almost 24% from the low it set on July 5th. It’s now trading above $65,000 for the first time since late June. There is clear momentum building that could continue to push Bitcoin higher.
Reduced Selling Pressure
Another reason for optimism is the reduction in typical headwinds and selling pressures. Recently, the German government sold 50,000 Bitcoin, which hit the market just as Bitcoin was bottoming out. Despite this, Bitcoin has been resilient, even amid rumors of potential selling pressure from Mount Gox creditors. The market seems to believe that these seasoned investors will not dump their Bitcoin into a weak market, suggesting that selling pressure is diminishing.
Impact of the ETFs
The introduction of the spot exchange-traded funds (ETFs) has been a game-changer. Spot Bitcoin ETFs took hold in January, sending Bitcoin to new all-time highs ahead of its halving for the first time in history. We have since been in a correction period, which is typical. The biggest start of the bull market usually happens about six months after the halving, putting us in the October timeframe. Moreover, Spot Ethereum (ETH) ETFs are potentially hitting the market on July 23rd, which could bring substantial institutional investment into Ethereum, boosting its price and potentially lifting the entire altcoin market.
Anticipated Liquidity Boost
We are also on the brink of a liquidity boost, with the Federal Reserve likely to cut rates soon. This move would trigger other central banks to lower their rates, leading to a flood of liquidity and capital into markets. Historically, liquidity tends to jump into risk markets first, and Bitcoin is still seen as a risk asset by traditional investors. This influx of liquidity could significantly boost the crypto market.
Political and Regulatory Environment
The political and regulatory setup is another bullish factor. The market has seemingly priced in the likelihood of a pro-crypto Donald Trump presidency. Trump has expressed strong support for crypto, even selecting a vice president with significant Bitcoin holdings and a solid understanding of the cryptocurrency space. Trump is also slated to speak at the Bitcoin Conference in Nashville later this month, with rumors suggesting he may announce plans for a U.S. strategic Bitcoin reserve. If true, this could lead to other countries adding Bitcoin to their balance sheets, driving unprecedented demand in the market.
Final Thoughts
With all these factors in play, I have never seen such a bullish backdrop for the crypto market at the beginning of a four-year cycle. If you’ve been waiting for a sign to invest in this market, this is it. The setup here is incomprehensibly good, and I urge you to take action now. You will not regret this in six months. Thank you, and I’ll see you next time.
Editor’s Note: Cryptocurrency has been the best returning asset class of the last decade and is know for its parabolic bull markets. However, those days won’t last forever. This may be your last chance to get in on the action before what could be the last great Bitcoin bull run. Every day you wait is literally costing you thousands in profits.
If you’re worried you can’t figure out crypto… don’t be. Our in-house crypto expert, Alex Benfield, will walk you through everything you need to know about crypto, step by step.
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This article previously appeared on Investing Daily.