The cryptocurrency crash is responsible for chest pain around the globe.
While the market may not appear to be healthy, there are a few reasons to stick around.
Prices are at their Lowest Points
Cryptocurrency skeptics have prematurely called the death of Bitcoin 300 times.
However, they’ve also been wrong each and every time.
Right now, prices are at historic lows and may rise further with government currencies such as the Lira falling apart. Bitcoin for example is now sitting at key support dating back to November 2017. If it can hold that line in the sand, we wouldn’t be surprised to see a test of $8,000.
The Long-Awaited Bitcoin ETF is Coming
Remember, there’s no reason for rejection, as pointed out by SEC Commissioner Hester Peirce.
She has made it very clear there is “no reason to not allow” the ETF.
Instead, according to Crypto Disrupt, “she believes the proposed change is not only consistent but that the SEC,” but, “went beyond its jurisdiction with the decision. She believes the focus should have been on the market where the ETF product would be traded rather than the less relevant issues of price manipulation within the cryptocurrency market.”
As we approach the September 30th, 2018 decision from the U.S. SEC, we expect to see a rally.
It’s a Great Tool for Diversification
Cryptocurrency assets are an ideal way for investors to diversify a portfolio of stocks and bonds.
“Research shows that a 2% exposure to crypto assets in a portfolio could, on average, boost returns by up to 200 bps. Five percent exposure could boost performance by over 500bps, nearly double that of a typical stock/bond blended portfolio.”
Smart Money is Buying Cryptocurrency
Following every price drop is a wave of interest from the big money. It doesn’t matter how far valuations drop, institutional investors seem relatively unfazed.
According to billionaire Mike Novogratz, “I think institutional investors are slowly coming to the realization that blockchain will be Internet or Web 3.0 and they’ll want to participate just like they want to participate in the Web.”