Cryptocurrency trading volume just hit a four-year low…
That’s according to CCData. It’s a leading source of crypto trading data.
You’d have to go back to March 2019 to find lower trading volumes than we’re seeing today.
To most folks that may seem like a bad thing.
It shows that traders are losing interest in crypto. After all the manic trading of the pandemic years, the speculators are moving on.
But at the risk of you thinking I’ve lost it, I’m here to tell you that the low in trading volume is actually great news for bitcoin investors.
And this time around, thanks to an event that will send bitcoin demand soaring, the gains could be even higher than we’ve seen coming off lows in the past.
March 2019 was the end of the last “Crypto Winter” bear market…
A Crypto Winter is a steep and prolonged bear market in cryptocurrencies… and especially for crypto bellwether bitcoin.
For example, from June to November 2011, bitcoin plunged from $30 to $2.
Between December 2013 and January 2015 it plummeted from $1,150 to $200.
And from January 2018 to March 2019, bitcoin went from $17,000 to $3,700.
Most investors run for the hills when they see prices plunge like these. But catching the end of these bear markets was a fortune-making event for well-placed investors.
That’s because the lower the price you pay to own an asset, the higher your profits will be when you go to sell as it rises.
For instance, from its 2015 low, bitcoin soared to more than $17,000 in 2017 – a 9,212% move.
But the usual high swings out of a low aren’t the only reason to expect a major move higher for bitcoin soon.
We’re also just nine months away from the next bitcoin “halving”…
There can never be more than 21 million bitcoins in circulation… which means we’ll see new supply enter only until we reach that maximum of 21 million. The whole thing is governed by the bitcoin source code.
Right now, there are a little more than 19.4 million BTC tokens. But also baked into the code is a rule that supply gets cut in half every roughly four years.
This is formally known as a bitcoin halving.
And, of course, when the supply of any assets drops… while demand stays steady or rises… the price of that asset must go up.
That’s why each past halving has sent prices soaring. Take a look…
And as colleague Teeka Tiwari has been showing his readers, as supply drops, demand isn’t just going to stay steady. It’s set to skyrocket.
As I’ve been showing you, we’ve never been closer to a bitcoin ETF…
That stands for exchange-traded fund. ETFs are the cheapest, simplest, and most popular way to hold all kinds of assets – from stocks, to bonds, to commodities, to currencies.
So far, nobody has been able to persuade the main U.S. stock market regulator, the Securities and Exchange Commission (“SEC”), to greenlight an ETF that holds bitcoin on behalf of investors.
And it’s not for a lack of trying…
BlackRock, the world’s largest asset manager, has tried. So have ETF managers WisdomTree, Invesco, and VanEck.
But as we looked at in more detail last Thursday, a federal appeals court has taken the SEC to task for blocking one of these ETFs without a clear reason.
And the court ordered the SEC to reconsider a proposal to convert the world’s largest existing bitcoin fund – the Grayscale Bitcoin Trust – from a trust into an ETF.
For colleague and crypto investing expert Teeka Tiwari, that means the tide is finally turning in favor of a bitcoin ETF for the masses… and a flood of new demand into the cryptocurrency.
Nothing is easy when it comes to crypto and crypto adoption. So, I expect the SEC will drag its feet and come out with new reasons why it doesn’t want to approve a bitcoin ETF.
But the writing is on the wall. We’re going to get a bitcoin ETF. The court unanimously came out and executed every single point the SEC had for refusing these proposals.
So now, it’s not a matter of if we’re going to have an ETF, but when we’ll get one. Now that this ruling is in place, it’s removed a massive hurdle for bitcoin ETFs to get approval.
Right now, the only way to buy bitcoin is through a crypto exchange… or through more complex, high-fee bitcoin funds.
That’s keeping hundreds of millions of investors out of bitcoin because it’s still too finicky to buy.
But as Teeka’s readers will know, when we get a bitcoin ETF, that will change. Mom and pop investors… as well as big institutions… can use the ETF to easily buy bitcoin.
Let me recap why all of this is so bullish for the King of Cryptocurrencies…
First, bitcoin trading volume is at the kind of depressed levels we saw at the end of the last Crypto Winter bear market.
That’s a classic contrarian buy signal.
And if you’d bought then, you’d have had the chance to see bitcoin rally as much as 51% in a month… before it moved on to a cycle high of $68,000.
That’s a gain of 1,130%.
Second, we are right around the corner from the next halving.
Third, we’re getting closer to a surge in demand from a bitcoin ETF.
That’s why I said gains this time around for bitcoin investors could be even bigger than the ones we saw at the end of the last Crypto Winter.
I’ll leave Teeka with the last word on that…
Be patient, focus on the large-scale drivers of adoption. That’s ETFs, institutional money coming into the space, and the broadening of the holder base of bitcoin and all digital assets.
How do you take advantage of that? You buy the best assets that you can – with bitcoin at the top of the list.
Then you go on with your life, enjoy your family, and let time do the rest. It’s a simple formula.
Just make sure you don’t overdo it. History shows you only need to put a small sliver of your portfolio into bitcoin to see outsized returns.
In the mailbag: “God has blessed us with an investment SAGE in Teeka Tiwari”…
Teeka’s been writing about the life-changing gains on offer for crypto investors since he first recommended bitcoin to his readers back in April 2016… when it was trading at just $428.
That’s a roughly 6,000% return for folks who bought in then and have stomached all the volatility since.
It’s why a panel of 130,000 independent analysts voted Teeka America’s “most trusted crypto expert.” And it’s why his readers keep turning to him through the Crypto Winters and bouts of volatility that come with crypto investing.
So, for today’s mailbag, we turn to a Teeka subscriber with a word of thanks and good faith in Legacy’s resident crypto expert…
Teeka, I do not know if this will ever reach you, but I want you to know that God has blessed us with an investment SAGE in Teeka Tiwari. I cannot tell you how much I appreciate your videos and the perspective you give me on investing. I do not think without your support I would have ever become a crypto investor.
I now truly believe that sitting back and letting things unfold will pay enormous returns in a few short years to come. I feel it’s like a seeing a giant wave forming offshore just waiting to break and overwhelm us with wealth. So, thanks Teeka. You’re the greatest.
– Vincent B.
It’s all a matter of keeping calm and, as Teeka says, letting time do the rest.
If you have any questions or comments for Teeka or the rest of the Legacy Research team, you can write in at [email protected].
Editor, The Daily Cut