Hi, below is an article from one of my students, Jonah, who is also a member here and crypto investor.
Introduction from Marc:
Currently, the crypto markets are messy, after the big pullback. Those who joined me 15 months ago are still +300% so its not all doom and gloom 🙂
A great deal of press overreaction and deliberate “crypto boom” & “bust” clickbait from the press and the little guy doesn’t know what to believe. This has been going on in stock markets for over 100 years.
Here is an example from an email I received the other day about stock market manipulation: (source Stansbury Research)
One of the commentators who used to work for one of the BIG US news corporations explained why the press do what they do (this is why I tell you to never pay any attention to what the “talking heads” on CNN etc are saying).
In answer to what’s going on in the markets right now, he explains “One word: its a ……”circus. I try to not watch the news unless I’m on. But I will tell you this: Being behind the scenes, and actually being paid by a major news corporation for many years, we get these emails in the morning, and they’d be pushing certain topics. And a lot of the topics you hear right now are bearish. Because all networks care about their advertisers. And to get advertising, you need more viewers. So, if we scare people, they tend to watch more.
Get this, the week after President Trump declared a national emergency Fox News saw its ratings climbed 89% over the same time… CNN saw 193% growth… and MSNBC saw 56% growth.
So, for the unsophisticated investor who blindly follows these “talking heads,” they help the big boys make extra profit. They buy on the news that everything is going up and then sell a few days later when the news is negative.
Exactly the same thing is going on in crypto right now and these top funds have guys who are given free airtime on the networks to push their own narrative and agenda. Never believe a word from anyone from one of the major banks or funds... “we are selling the éuro at xxx price, with a stop here… and target there.”
Some current examples from an article in www.crypto-news-flash.com
BlackRock claims no one wants Bitcoin
Recently, BlackRock CEO Larry Fink claimed that institutional investors are not interested in crypto. According to Davis, Fink has a different motive for making that statement as his words do not match the action of his company.
About six months ago, BlackRock claimed Bitcoin was going to hit a $10 trillion market cap. The company further predicted that Bitcoin could replace gold. Furthermore, a couple of days ago, the company bought 12 percent of all MicroStrategy shares. MicroStrategy has roughly 100,000 Bitcoins, so basically, BlackRock bought 12,000 Bitcoins from them. According to Davis, they want to scare people to sell their Bitcoins while they buy them cheaply.
You do not buy a stake in MicroStrategy unless you want exposure to Bitcoin…Don’t look at their words, look at their actions.
Fink’s statement further contradicts the reality on the ground as Fidelity Digital Asset proved otherwise by announcing plans to increase staff by 70 percent due to the high Bitcoin demand from institutions.
Guggenheim claims Bitcoin is going to 10K
Guggenheim’s Scott Minerd recently predicted that Bitcoin will go down to $10,000 days after his $15,000 prediction. However, Davis claims that like Fink, he wants to play with the emotions of investors. Guggenheim interestingly predicted in February that Bitcoin will go as high as $600,000, which is basically in agreement with BlackRock’s prediction that the market cap would match that of gold.
They are overly bullish at the top, and overly bearish at the bottom.
Just like BlackRock, Guggenheim is literally scaring investors to sell their Bitcoins while they silently buy the dip.
Goldman Sachs claimed Bitcoin is not viable as a currency
For some time now, Goldman Sachs has been saying Bitcoin is not a viable currency or investment. Yet, their internal memo disclosed that they are unveiling a new crypto trading team. Another report also claims that Goldman Sachs is ramping up Bitcoin trading in a new partnership with Mike Novogratz’s Galaxy Digital.
This is like somebody saying ‘I love you, I love you, I love you, but beats you all the time.
JPMorgan claims Bitcoin will fall to $25,000
JPMorgan recently predicted that Bitcoin will drop to $25,000. Davis admitted that this is the closest prediction to reality, however, they just want people to dump their assets. The same institution predicted this year that Bitcoin will hit $146,000 when it was bullish. The firm also endorsed clients’ 1 percent allocation to Bitcoin as a hedge.
Here is the video that goes with the article. I haven’t seen this guy before, but he talks a lot of sense. As he says “don’t listen to what these guys: GS, JPM etc are saying, watch what they do”
( I do NOT recommend trading any crypto using leverage- it’s a sure-fire way to lose your shirt,
Why would they tell you?! What’s in it for them? They probably want the market to drop so they can buy lower down. It’s rigged against the little guy and that’s exactly what is currently going on now is that the big institutions are manipulating prices to scare the little guy into selling (many of whom already have).
Despite the current crypto market uncertainty and negative news “China bans Bitcoin”- they already did it in 2017. China just happens to be launching its own digital currency, anyone notice a vested interest? This week Fed chair Powell …. “you wouldn’t need stable coins, you wouldn’t need cryptocurrencies if you had a digital U.S. currency. I think that’s one of the stronger arguments in its favor.” He also mentioned that “the $ won’t lose its reserve currency status”… he hopes not for sure! If the central banks can’t keep printing fake money out of thin air they have lost their omnipotence.
Central banks were too slow to react and seemed to hope that Bitcoin and the like would just disappear. Now they are terrified that they are losing control of the money supply. They will do everything possible to taint crypto is already out of the bag. Also, the US government has given permission to US companies to invest $billions in the crypto sphere, so it’s unlikely they will try ban it outright. What they do want to do is control it and take it out of the hands of the average person. Why, for example, are wealthier people and funds allowed to invest in crypto all over the USA, but the little guy can not?
Surely if crypto is as evil as they like to convince us, then they wouldn’t have allowed it.
What I believe will happen is that the next 6 months could be very rocky. They will try to create as many obstacles (think Binance) and scare off as many smaller investors out of the crypto world as possible. Then the big boys, who are easier to control and tax, will sweep in and mop up. For all the reasons I explained in last year’s webinar and the mini-course here in FMP, I still believe that those who hold their nerve will see life-changing gains over the next few years. The only difference is now it may take a little longer than it first seemed.
I am convinced that for the long term everyone should at least have some BTC if they have some spare cash. Just buy it and forget about it for a while if you have the stomach for it. As ever do not risk money you can not afford to lose and I am not a licensed financial adviser.
These big guys may succeed in driving Bitcoin much lower but if it does I will buy more.
Those who bought Amazon at the original IPO in 1998 at $18 a share (at the tail end of the dot.com boom) saw their $1800 invested grow to approx $2.3 MILLION
I do not expect to wait that long to see massive future growth in Bitcoin and some of the other cryptocurrencies in my portfolio.
While e little guy runs away the big guns are buying huge amounts. More and more of the biggest financial companies and funds on the planet continue to move into the crypto world. The most recent in the last few months being JP Morgan (master manipulators and short-sellers wherever they go) and Goldman Sachs. GS this time last year said that “Bitcoin was not a viable investment” and warned investors away from it. The price was around $8000 at that time. They advise it’s a terrible investment but they are now offering it to their wealthy clients and have employed more staff to manage their trading desks.
Paul Tudor Jones, billionaire hedge fund manager and one of Americas richest men tentatively put 1% of his fund’s wealth into Bitcoin in May of 2020.
By October he had increased that to 2%.
In May of this year, he announced that he is now comfortable with 5%.
He is credited with being one of the most successful fund managers of all time.
Article by Jonah:
In a recent poll by Nickel Digital Asset Management, it was revealed that institutional investors and wealth managers from around the world are looking to increase their cryptocurrency exposure between now and 2023.
The poll was cast between the months of May and June 2021 and asked institutional investors and wealth managers from the U.S, U.K, UAE, France, and Germany who already have exposure in cryptocurrencies on their investment strategies. Of those asked, a staggering 82% said that they would increase their crypto exposure between now and 2023. 40% said they would dramatically increase their holdings. And on the other side, 7% said they would reduce their holdings and only 1% said they would sell all of their holdings.
When asked about their future crypto investment plans, 58% of the respondents said that their main reason for investing in crypto is for long-term capital growth. 38% said they invested because they have confidence in the asset class. 37% said they were investing in it because more leading corporates and fund managers were investing in it. And lastly, 34% said that improved regulatory certainty will play a role in increasing their holdings.
Anatoly Crachilov, co-founder and CEO of Nickel Digital stated “The number of institutional investors and corporates holding bitcoin and other cryptoassets is growing and their confidence in the asset class is also increasing.”
He touched on this further by stating “Many of those professional investors with holdings in crypto assets are looking to increase their exposure … These trends will continue to expand.”
Anatoly explained that the trend is “being driven by several factors including strong market performance during the Covid-19 crisis, more established investors and corporations endorsing the market, and the sector’s infrastructure and regulatory framework improving.”
This carries weight as it is true that crypto is being accepted in more places and more companies are taking it more seriously after the highs the market made during the pandemic. Some examples of this are companies like PayPal and Venmo, but more recently, Fidelity and Bank of America have announced that they will be expanding their digital asset investigation team. A trend that has already been done by other banks like JP Morgan, Wells Fargo, Citi, and many others who have developed research teams to better understand and invest in the market.