The Crypto Winter years, from 2018–2020, were the most painful market years of my life.
After watching crypto soar throughout 2016 and 2017, the swift fall down and slow grind sideways for over two years sucked the life out of me.
It was a hard slog.
I took plenty of ridicule from skeptics and naysayers. But despite their slings and arrows, I stayed true to the course.
That’s because I believed in my research. And that research showed me crypto was still in its early stages of adoption.
As long as I got the adoption story right, I knew bitcoin and the overall crypto market would eventually rally to new highs.
And that’s exactly what happened…
From its Crypto Winter depths, bitcoin skyrocketed 2,002% to a new all-time high of nearly $70,000 in November 2021…
As bitcoin goes, so does the altcoin market… and the overall crypto market rose from around $100 million to more than $3 trillion.
It wasn’t only a triumph for me… but for all the readers who made life-changing gains following me and my research.
But I knew the journey to mass adoption for crypto is a marathon – not a sprint. And I warned you there’d be more bumps in the road before we reach the finish line.
So when crypto crashed again, I was better emotionally prepared to deal with a long, drawn-out bottoming process.
As you know, I’ve been quite cautious, expecting this bear market to drag out and possibly break to lower lows.
However, my position has changed. And while we may retest old lows and perhaps even go lower… I do not believe it will be a long, drawn-out affair.
In fact, I’m willing to say that I believe this Crypto Winter won’t last as long as the last one.
Before I get to why I’ve changed my view, let me tell you what’s different…
This Time Is Different
During the 2018–19 crypto bear market, there was no new demand for crypto. It was the same group of people trading the same coins.
That’s why bitcoin and the entire crypto space languished for over two years.
This lack of new demand didn’t change until the inflation-fighting narrative behind bitcoin took hold among early institutional adopters like billionaires Paul Tudor Jones, Stanley Druckenmiller, and Ray Dalio.
Tudor Jones and Druckenmiller have said they prefer bitcoin over gold as an inflation hedge… with Dalio calling bitcoin a “younger generation’s alternative to gold.”
These men run some of the most powerful hedge funds in the world.
Once they threw their weight behind bitcoin, we saw some “green shoots” of life spring up in the market as prices firmed up off the back of institutional money nibbling at bitcoin.
We had to wait over two years from bitcoin’s previous peak for that to happen…
This time around, we’ve only had to wait nine months. And that’s where my change in viewpoint comes into play…
This $10 Trillion Titan Is Coming Into Bitcoin
Unlike Crypto Winter – when nearly every institutional player hastily backed away from their early commitments to “examine” bitcoin as it dropped 85% – the biggest player in the institutional money game is ready to enter the space.
I’m talking about Blackrock, the world’s largest asset manager with over $10 trillion under management.
Last Thursday, Blackrock announced a partnership with crypto exchange Coinbase.
Drink that in for a moment.
Blackrock says its institutional clients want access to this space so badly that it’s teamed up with Coinbase to provide them an access point to crypto assets.
According to Bloomberg, the first asset these ultra-wealthy clients will be able to buy is bitcoin.
The focus of the partnership with Coinbase, the biggest US crypto-trading platform, “will initially be on bitcoin,” BlackRock said.
The company’s institutional trading platform for crypto assets, Coinbase Prime, will provide crypto trading, custody, prime brokerage, and reporting capabilities to institutional clients on BlackRock’s Aladdin, who are also clients of Coinbase.
Aladdin offers a suite of software tools designed to help institutional investors manage their portfolios.
“Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets,” said Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, in a statement.
It’s impossible to overstate how bullish this is.
Despite all the volatility we’ve seen in crypto over the past nine months, the biggest institutional investor in the world has just publicly announced they’ve joined the party.
Bitcoin is down 66%, Ethereum is down 65%, and the whole space is down 64%.
Three Arrows Capital, Celsius, and Voyager have blown up. Even an investigation into Coinbase by the SEC is underway… and yet Blackrock is still coming in.
Again, I cannot overstate how bullish this is. Blackrock would never risk its credibility if it wasn’t 100% convinced that bitcoin and crypto assets were here to stay.
And it’d never align with a partner (Coinbase) if it thought its partner would get shut down by the SEC.
Let me be clear… This does not mean the volatility is over.
What it does mean is a new buyer has entered the room. A buyer with pockets so deep they can swallow this whole space 10 times over.
And with a buyer like that in the room, I no longer fear that should we drop another 50% from here, we’ll be down for an extended period.
We still may drop another 50%, but I can virtually guarantee we won’t stay down for long… that’s why I’m getting ready to double down again.
Why I’m Ready to Double Down Again
How bullish has this news made me?
I bought more bitcoin on the Blackrock news.
I’ll increase my BTC position by another third if Federal Reserve Chairman Jerome Powell caps the next rate increase at 50 bps.
And I will double my entire BTC position once he stops raising rates.
This isn’t the first time I’ve doubled down on bitcoin.
In April 2019, when everyone else was running scared, I wrote an update saying it was time to double down.
On that day, BTC traded at $4,922.80. Fast forward to April 12, 2021, and BTC hit $63,314.01. That’s a nearly 1,200% return in two years.
And that was without a titan like Blackrock stepping into the arena.
So can you see why I’m so bullish.
The bond market is telling us rates will start dropping in 2023. Once rates drop, so-called “risk on” investments will soar.
Friends, remember bitcoin is the mother of all risk on trades.
If the bond market is right (and I believe it is), the prices we pay today for BTC (and crypto in general) could prove very cheap.
Isn’t Bitcoin Supposed to be Immune to The Fed?
It’s a bitter pill for me to swallow, but I must acknowledge that even bitcoin is beholden to the Fed for this market cycle.
It would be a far more bitter pill for all of us if I lacked the humility to accept that this is the current reality we find ourselves in.
Don’t let that fact get in the way of owning more bitcoin.
Long story short: If it’s appropriate for you, now’s the time to consider buying more bitcoin
Again, let me be clear: We aren’t out of the woods yet…
But we can see a way out through the trees where before there was nothing but darkness… reinforcements are coming… and any big bad wolf in this forest won’t live long when facing the army of institutional capital gearing up to join our cause.
Let the Game Come to You!