Crypto Asset Strategies

Crypto Market Update

Crypto Market Update
By Adam Sharp
Date March 12, 2020

Dear Member,

It’s been an absolutely brutal few weeks in the crypto markets. As I write this, bitcoin is down 20% and trading around $6,000.

And as I feared, altcoins are doing even worse. Almost every coin is down from 25% to 38%. This is not the time to be heavily invested in speculative altcoin projects. That day will come again sometime. But unfortunately, I don’t think it will be in the very near future. I continue to prefer bitcoin over all other projects.

We are now almost certainly in what will be a sustained bear market. Not just in crypto, but in almost everything.

Central banks will try to fix everything by printing money, but I’m not hopeful on that front. Here’s how I put it last Friday:

I expect we’ll see central banks, like the Fed, and governments try all sorts of things to keep the market going up.

I don’t think it will be enough.

Eventually, there needs to be a correction to flush the market and clear the debt. Yes, that means there will be a recession. And some companies will go bust.

This is how the economy improves. It needs to happen. It will happen eventually. It always does. The stock market and debt party can’t go on forever.

Over the last 10 years, we’ve been trained to buy the dip every time. But eventually, there’s going to be a dip that’s a lot bigger than 10% or 20%. Unfortunately, I think there’s a good chance we may have reached that point.

In the long run, central banks printing money will be good for bitcoin. It will erode the value of fiat money and push people into alternatives like bitcoin, gold and silver. I think buying bitcoin at these levels is very likely to make you money over a two-year time frame.

But right now, the market panic is the only thing that matters. As a result, we may get a chance to buy bitcoin at even lower prices.

I will continue to add to my gold and silver positions (I already have plenty of bitcoin). And I am holding roughly 25% cash to eventually buy very beaten-down stocks.

If you haven’t started a “buy very low” list, I recommend doing so now. I suspect we will get a rare chance to buy stocks at huge discounts in the near future (we’re not there yet).

Needless to say, I could be wrong on some things. These are just my opinions. And we are going through a very unpredictable time.

P.S. Our video news show Crypto Monitor will return next week. And topic No. 1 will be the state of the crypto markets.

Top Posts on Early Investing