Since its $2.9 trillion all-time high in November, the global crypto market has fallen as much as 44% to a $1.69 trillion market cap.
We’ve seen bitcoin fall 45% to a low of $35,180… While Ethereum fell as much as 51% to $2,407.
And last Thursday, investors pulled more than 18,000 bitcoin (about $670 million) from centralized exchanges like Coinbase and Binance.
It was the largest one-day move in over a month, according to Glassnode.
At first glance, it looks like the worst possible time to be – or get – in crypto.
But that’s a mistake.
As I’ll show you today, these negative moves aren’t unusual… and while skittish investors are selling, Wall Street and banks are pouring money in.
But first, let’s do a quick refresh on crypto volatility…
We’ve Been Here Before
Volatility, including bitcoin’s most recent 22% drop, is the norm in crypto land.
Over the last decade, we’ve seen bitcoin fall 40% or more about 10 times.
Both the 2013 and 2017 bitcoin bull runs had at least five separate 20–50% drops, according to crypto education platform Onramp Academy.
But when those cycles peaked, investors that held on saw over 8,000% and 4,000% returns, respectively.
Or look at March 2020… bitcoin fell 50% to under $4,000 in just two days. But if you persevered through that drop, you’d have seen bitcoin soar 1,894% to $68,789.
In all three examples, nervous investors got spooked and sold out of crypto on negative short-term news. Mainstream finance declared crypto dead or dying. And investors who held on saw life-changing returns.
So, while some crypto newbies are panicking… our longtime readers have been here before. They know how this story plays out over the longer term.
Especially now that Wall Street has made a U-turn on bitcoin.
In the past, Wall Street was rooting for bitcoin to fail. They had no skin in the game. When investors bailed, Wall Street cheered.
Today, it’s quite the opposite…
Wall Street’s Crypto 180
Crypto and bitcoin may be down on the year… but institutional interest and investment are higher than ever.
According to Candace Browning, head of global research at Bank of America Securities, the number of executives mentioning crypto in earnings calls rose from 17 in 2021… to about 147 in just the most recent quarter.
At the same time, crypto companies are raking in funding hand over fist…
Just look at what’s happened in the crypto space in the first month of 2022:
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Digital-asset custodian Fireblocks raised $550 million.
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London-based venture capital (VC) firm Blossom Capital raised $432 million to invest in crypto and European tech startups.
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Crypto exchange FTX.US raised $400 million in outside capital at a valuation of $8 billion.
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Hong Kong-based metaverse startup Animoca Brands raised $360 million.
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NFT marketplace OpenSea raised $300 million in new venture capital.
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Privacy-focused blockchain Secret Network raised $225 million for an ecosystem fund and $175 million for an accelerator pool.
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Blockdaemon, an institutional-grade blockchain infrastructure company, closed a Series C funding round of $207 million.
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All-star quarterback Tom Brady’s NFT platform, Autograph, raised $170 million.
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The Near Foundation, developers of the eponymous blockchain, announced a $150 million private token funding round.
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Swiss crypto bank SEBA raised $119 million.
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Crypto asset software and data provider Lukka closed a $110 million funding round.
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Bahrain-based crypto exchange Rain Financial raised $110 million.
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Crypto services startup Zero Hash raised $105 million.
This baker’s dozen raised over $100 million each in one month. That’s on top of another 50-plus announcements of crypto-related funding in January alone.
And it’s not like January started the party. In 2021, Galaxy Digital reported VCs invested more than $33 billion into crypto and blockchain startups. A record high.
A good chunk of these investment dollars comes from major VCs, like Andreessen Horowitz, Coatue Management, Kleiner Perkins, Sequoia, Softbank, and Tiger Global…
The “big money” is backing crypto like never before.
Follow Wall Street’s Gravy Train
Here at PBRG, we believe in crypto just as much as we did in 2016, 2018, and 2020… but this month’s pullback is different.
Institutions that once bashed crypto are now invested.
Remember, we’ve seen crypto pullbacks like this before. But while some investors are dumping their crypto, big money is buying while prices fall.
Consider this warning from Daily editor Teeka Tiwari back in March 2020. Just days after the 50% bitcoin crash I mentioned earlier…
It feels like the world is burning around us. Markets are crashing. A global recession appears imminent. And fear is running rampant…
But today, I’m going to ask you to do something really difficult… You won’t want to do it. You might even hate me for asking you to do it.
Today, I am asking you to go on the offense… I’m asking you to make a move that could alter the course of your family’s fortunes forever…
Today, in the midst of all this broad market carnage, I come to you again, pounding the table to buy crypto.
If you listened to Teeka that day and just bought bitcoin, you’d have seen a 480% gain by the end of the year… today, you’d be up even more. A whopping 680% in less than two years.
So, take Teeka’s advice… “Go on the offense.”
This pullback is a short-term blip in a long-term crypto trend that’s made millionaires out of patient investors.
As crypto continues to go mainstream… and more of Wall Street comes aboard… there will be fewer opportunities for life-changing returns.
Regards.
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Grant Wasylik
Analyst, Palm Beach Daily
P.S. Going on the offensive means more than just upping your crypto in a downturn…
It also means setting yourself up for life-changing opportunities before they go mainstream.
Thanks to the crypto pullback, some of the best crypto projects have room to run 20–50x higher from here.
But as prices recover, the opportunities will become fewer… and fewer… until they’re gone.
Click here to learn how Wall Street’s crypto craze is boosting one of the most profitable crypto opportunities of 2022.
You’ll even get the name of Teeka’s next trillion-dollar crypto to buy right now, no strings attached.