sport football: When It Comes to Crypto, Throw Your Charts in the Trash

October 14, 2024 | Listen Online | Read Online

When It Comes to Crypto, Throw Your Charts in the Trash

Since I started researching cryptocurrencies back in 2016, I never really focused on the technical analysis of their price movements.

I was always only interested in the fundamentals.

Rather than bogging my subscribers down in the technical details, mechanics, coding, and math that goes into bitcoin and its underlying blockchain technology… I wanted to help them understand the idea.

And the idea is simple: Usage and adoption.

All you need to know to make money in this asset class is that crypto will go from being used by a small number of people to a massive number of people.

That's it.

I get it. After hearing my constantly beat the drum on "usage and adoption" for over eight years, people will start to tune out. They'll get bored.

And that's the worst thing you can do – become bored. That's when you're most susceptible to fear, uncertainty, and doubt (FUD).

When you're bored, you'll focus on the daily price action instead of the fundamentals. You'll follow technical analysts.

Now, many technical analysts are very good at reading their charts. And based on those charts, they'll tell you, "Bitcoin has already peaked"... "The top for bitcoin is in"... Or "The Fibonacci levels are saying this or that about bitcoin."

Technical analysis has its place… And it certainly has value.

But when it comes to an asset like bitcoin that's on a long trajectory to mass adoption, technical analysis can really impoverish you.

That's because it can get price action right over the short term… But it's terrible for creating wealth over the long-term.

Whether you're investing in bitcoin, Amazon, Microsoft, Google or Facebook, at some point, the charts will point to huge price drops. And you might be tempted to act on those short-term technical signals.

But over the long term, these companies have seen mass consumer adoption. And each company – as well as bitcoin – has a value above $1 trillion.

As I've written in the past, if you want to use technical analysis to trade bitcoin or any other crypto, you should only use it for your short-term trading stack. Never to inform your thinking about your core stack.

Your short-term stack is your play money. But for those of you who are letting boredom creep in, I have some incredibly bullish news for you…

Old Money Is Chasing New Money (Crypto)

If you've been with me for a long time, you've seen multiple bull and bear cycles in this space. So you're familiar with how this asset class moves.

But that's not true of the new cohort of digital asset investors. If you're among that group, you've probably never experienced the rollercoaster ride of extreme volatility and extreme boredom that comes with owning bitcoin.

That's what you deal with as an owner of bitcoin.

You can have massive volatility one day and agonizing boredom the next. This asset bounces back and forth between terrifying drops, exhilarating rallies, and the mind-numbing nothingness of sideways action.

It's enough to drive you mad.

I get it. I'm not asking you to be a robot. Feel your feelings. Scream into a pillow if you have to. But don't let your emotions drive your decisions. Just focus on the long-term narrative of increasing usage and adoption.

For instance, just last week, federal regulators gave the Bank of New York Mellon a waiver allowing it to custody digital assets on behalf of its institutional clients.

BNY Mellon is one of the oldest banks in the world. It's tasked with safeguarding more money than the entire annual economic output of the United States.

As I asked in the October 4 issue of Digital Asset Daily, "Why would you put that at risk if you weren't completely convinced that bitcoin and digital assets have a bright future of further adoption ahead?"

The answer is quite simple: BNY Mellon sees digital assets as the future. And you don't have to take my word for it.

The bank's CEO, Robin Vince, has described digital assets as the bank's "longest-term play."

Through its fund services business, BNY Mellon already supports 80% of SEC-approved bitcoin and ether exchange-traded products, according to Bloomberg.

Think about that. I want you to really, really think about that.

BNY Mellon has been around since the founding of the United States… You don't survive that long by making dumb moves. People don't trust you to hold more wealth than the entire GDP of the United States unless you have immense credibility.

The fact that one of the oldest and most prestigious banks in the world now has approval to custody digital assets validates my entire thesis of usage and adoption.

Those of you who have been with me since 2016 remember the abuse we took from the mainstream financial media when we advocated owning bitcoin. They accused us of facilitating money laundering and gun running and all manner of illegal trade.

Today, the most respected banks in the world are launching products around that very asset. They no longer see it as "illicit" or "magic internet money."

Once you realize how early we are in this adoption cycle, you can understand why the volatility doesn't faze me. And why it shouldn't bother you, either.

Mass Adoption of Bitcoin Will Skyrocket the Altcoins

Friends, during my first crypto bull market, I bought bitcoin as low as $400 and as high as $16,000. And then watched it go down to $3,500.

During the previous bull cycle, I got bitcoin for as low as $9,000 and paid as much as $60,000. Then I watched it go to $15,000… And bought more.

And here we are, back up at $62,000.

That's the beauty of getting into a technology early in its adoption cycle. Even if you have truly terrible timing, you can still make money.

We saw this with Microsoft. From 1986 to 1999, you could have bought Microsoft at its high every single year and still made money.

Remember, this is the first year bitcoin has been available to the traditional financial system at scale and in a regulatory-compliant way via exchange-traded funds (ETFs).

And that's why I focus on bitcoin so much.

Because if you want to get a glimpse as to where crypto as a whole is going, you have to look at bitcoin. It's the gateway into the entire digital asset class.

And while I believe bitcoin will trade to at least $150,000 during this bull cycle, there's a tiny subsector of altcoins that will do much better.

What makes these tokens unique is that they have automatic payouts that generate income month after month after month… no matter what's happening in the market.

That's why we call them "crypto payout coins."

Recently, I held a special briefing where I pulled the curtain back on a convergence of three massive tailwinds that will send these tokens higher. You'll also get details about six tokens I'm targeting in this niche sector.

You can watch the replay right here.

Friends, always remember: On any given day, bitcoin can drop 50%. That's just the nature of the asset. But it doesn't matter because nothing can stop its long-term adoption by global investors.

The incentives that govern bitcoin are so well aligned and so self-reinforcing that usage and adoption can't help but beget more usage and adoption.

That is important to understand because with the approval of bitcoin ETFs, we are on the cusp of the single largest explosion of usage and adoption by global investors in bitcoin's history.

And some of this rush of money into bitcoin will naturally percolate into the much smaller altcoins, sending them orders of magnitude higher.

It will all be painfully obvious in hindsight. The only question is: Will you just watch it happen?

Or will you grab the bull by the horns, embrace the volatility, and ride it out to life-changing gains?

The choice is yours.

Let the Game Come to You!

Big T