Navigating the "Bitcoin Bear Market"

By Wayne Mulligan, on Thursday, July 5, 2018

It’s been a tough year for Bitcoin, Ethereum, and the 1,500 other cryptos that exist.

And now, with the cryptos markets battered by new regulations and negative sentiment, we’ve officially entered a “Bitcoin Bear Market.”

Today, we’ll show you what we’re doing not only to survive this market…

But to put ourselves in position to thrive once the tide finally turns.

What Happened?

Before we reveal our “Bear Market Playbook,” let me quickly explain what happened to the crypto market…

Normally, pullbacks in cryptos happen because of one of two reasons:

First, they occur because of “bad news,” like negative statements from influential investors, or the introduction of new regulations. For example, after J.P. Morgan’s CEO bashed Bitcoin last September, its price fell by about 25%.

And second, pullbacks occur when investors take money out of cryptos to take profits.

The thing is, this current pullback wasn’t caused by the first or second reason…

It was caused by both of them.

Let me explain...

Bad News for Bitcoin

After the crypto market hit an all-time high around Christmas — with Bitcoin trading at over $17,000 and Ethereum at about $1,400 — things quickly went downhill:

Today, Ethereum and Bitcoin are off about 66% from their highs, and other cryptos are down even more than that.

Just like always, this pullback was caused by two main factors:

First, many crypto investors were forced to take profits..

That’s because, after Bitcoin and Ethereum soared by thousands of percent the previous year, investors owed Uncle Sam a fortune in taxes — and the only way they could pay their bill was to sell off more of their crypto holdings.

But as soon as tax season ended and the selling pressure ended, prices shot up again. For example, Ethereum soon skyrocketed from about $450 to more than $800.

But the post-tax season surge didn’t last for very long. That’s because of the second factor I mentioned earlier: bad news.

You see, two of the wealthiest men in the world, Warren Buffett and Bill Gates, soon came out strongly against cryptos — and this caused cryptos to resume their slide.

Today, the crypto market is worth just a fraction of the value it had at the beginning of the year — and understandably, investors are scared.

As an investor, it can be terrifying to watch your crypto holdings get slashed in value…

It might make you want to leave the crypto market entirely.

The thing is, that would be a HUGE mistake…

Bitcoin is Dead... Long Live Bitcoin!

You see, price swings like this have happened many times before…

And the patient folks who took a long-term approach have made fortunes.

For example, over the past six years, Bitcoin has been declared “dead” 166 times by the mainstream financial press.

And guess what: not only has it been “resurrected” every time, but it’s ALWAYS gone on to reach new highs shortly thereafter.

For example, in November 2011, Wired published a now-famous article entitled “The Rise and Fall of Bitcoin.”

At the time, Bitcoin’s price was $10. But earlier in the year, it had hit at an“all time price high” of $29.57. Since Bitcoin had lost about 66% of its value (sound familiar?), the media proclaimed that the bubble finally burst.”

And countless similar stories have been written over the past seven years.

But here’s the bottom line: If you’d sold your Bitcoin after each of those “declarations of death,” you’d have missed out on making a great deal of money (each and every time!).

And that explains why it would be a mistake to give up now...

Here’s What To Do Now

In fact, not only are we recommending that investors hold on to what they have...

But we’re recommending they start doubling-down on some core holdings.

By adding to your holdings at today’s beaten-down prices, you’ll stand to make even more as prices rise again.

As Warren Buffett himself said: “You have to be greedy when others are fearful.”

That’s the secret to making money in any type of investment, including this one.

Which is why, over the next few weeks, Matt and I will be sharing specific ideas and investment recommendations for how to play this bear market.

We’ll show you how to manage your existing crypto portfolio and which new cryptos to invest in now.

So stay tuned!

Best Regards,
Wayne Mulligan
Wayne Mulligan


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