sport football: The Second-Biggest Event in Crypto Happened Last Month

August 05, 2024 | Read Online

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The Second-Biggest Event in Crypto Happened Last Month and the Market Barely Noticed

Last month, the second-most important event in the history of cryptocurrency occurred.

This event will radically increase adoption of this asset class. I'm talking about bringing in billions of new users and investors to crypto.

Yet, the crypto market is selling off...

Most investors would take the lack of positive price momentum as a sign the bull market might be in trouble.

But I'm excited by this action because it's setting up a whole new wave of buying opportunities.

And you should be excited, too.

Friends, I've told you repeatedly in these pages: The best time to buy any asset is when investor sentiment is horrible.

Because when sentiment is at its worst, even great assets trade at fire-sale prices.

The Market Is Sleeping on Crypto's Biggest Story

The most important event for crypto in terms of adoption was, of course, the approval and launch of spot bitcoin exchange-traded funds in January.

ETFs are investment funds that trade on stock exchanges. They provide investors with an easy way to invest in an index, sector, commodity, or other asset.

Currently, there are 11 bitcoin ETFs trading on U.S. markets, including funds backed by Wall Street powerhouses like BlackRock, Fidelity, and Van Eck. Combined, they have $58.6 billion under management.

When the bitcoin ETFs launched in January, bitcoin actually dropped from a high of $49,000 to as low as $38,500. The market totally got it wrong because while they were selling, I was telling my readers to buy, buy, buy.

Just 50 days later bitcoin hit an all time new high of $73,700.

You can see that in the chart below…

I'm telling you all this because we're seeing a similar situation play out following the approval and launch of spot Ethereum ETFs.

With a market value of $385 billion, Ethereum is the second-biggest crypto behind bitcoin.

And in my view, the launch of Ethereum ETFs is more bullish for the greater crypto ecosystem than the bitcoin ETFs.

Here's why…

Bitcoin is essentially a central bank in cyberspace. That's why I believe many countries will turn to it as an alternative reserve asset.

Its primary use case is for issuing a finite amount of monetary units as well as providing for the safe storage of those units. And the ability to transfer those monetary units without the need of a middleman.

The bitcoin issuance rate is hardwired into bitcoin's code. Unlike a human-run central bank, nobody can manipulate it.

So in terms of its use case, bitcoin is basically a savings mechanism that happens to use blockchain technology. In that primary use case, it has no competitors. Let that sink in for a moment.

How many technology networks can you think of that have zero competitors?

I can't think of any.

We have tech oligopolies made up of Amazon, Google, Facebook, Apple and Meta. But no one operates in tech without competition.

No one except bitcoin.

The launch of bitcoin ETFs is very important for bitcoin adoption and bullish for bitcoin's price. But it doesn't do really much for the rest of the crypto ecosystem.

That's why I believe the launch of spot Ethereum ETFs could be as big – if not bigger – than the launch of spot bitcoin ETFs.

Ethereum's use case is completely different from the use case of bitcoin. Ethereum is not a monetary system… It's an operating system like Windows or Linux.

Longtime readers know I believe the next stage of transformational software development will happen on the blockchain... not the traditional internet.

Just like Microsoft was the world's most popular PC development platform in the 1990s... And Google's Android and Apple's iOS are the most popular mobile app development platforms today...

Ethereum is the go-to platform for blockchain projects.

That's why the Ethereum ETFs are so much different than bitcoin.

They are proof that Wall Street can successfully financialize crypto assets with radically different use cases than bitcoin.

This is something I've been writing about since 2018. To see this vision finally coming to reality is incredibly humbling for me. (And incredibly profitable for subscribers who invested early in my ideas.)

Yet, despite billions of dollars' worth of inflows so far…

The market has responded to the launch with a collective yawn. Since they came online, the price of ETH is down 27% from its highs set in March. And it's down 14% since the launch of the Ethereum ETFs last month.

Most investors would see this type of price action and assume the worst. That's a mistake I won't let you make.

Remember, when the first bitcoin ETFs hit the market, the price of BTC dropped from $55,000 to $38,000.

People were screaming, "I thought the ETF was going to be the Alpha and Omega of crypto and we'd hit $100,000 right away."

As mentioned above, I suggested short-term traders could buy the dip and sell the rip. Well, if you did that with your bitcoin trading stack, you could've made 15% in a few weeks.

(Remember, I don't recommend you trade in and out of your core bitcoin stack. I suggest you set aside a trading stack for short-term bitcoin opportunities)

I believe we're seeing a similar short-term set-up with Ethereum. If we just snap back to the March 2024 highs, that's' an 36% gain right there. Ethereum is a buy right here on this weakness.

But there are even bigger gains to come…

The Money Train Is Coming

My job is to put you in front of a massive money train. And right now, the biggest money train in the crypto space are the ETFs.

They're the single largest funnel of money from investors into crypto.

For years, I've told you the profit motive was so strong that you'd see Wall Street shift from being anti-crypto to pro-crypto.

We've seen that play out with the launch of spot bitcoin and Ethereum ETFs.

If you're a longtime reader, you know I see bitcoin hitting at least $150,000 this cycle. Now that Ethereum has its own ETFs, we could see its price hit $10,000-12,500 during this bull market.

Now that the two largest cryptos have their own funds, I'm betting Wall Street will launch funds for other types of cryptos, including staking tokens and meme coins.

Will they launch these products because they believe in crypto? No. They'll launch them because of the fees these products can generate.

Friends, these ETFs will attract billions of dollars from the marketplace and into crypto.

So again, my message to you is, no matter the volatility, don't worry about it. Treat the volatility as a gift.

If you have extra money, go buy more bitcoin and/or Ethereum. If you don't have extra money, don't worry about it. Just go live your life.

But don't drive yourself crazy watching the day-to-day price moves. This is a volatile asset class. Embrace that. Accept it as the admission price for the opportunity to make life changing gains.

I want you to understand that right now everything is on our side.

Everything is now working in our favor as crypto investors. Nothing and no one can get in the way of the adoption of crypto assets. That's an amazing place to be in when you're an investor.

All you have to do is wait patiently at the station for the money train to arrive.

Let the Game Come to You!

Big T