That’s according to hedge fund manager and prominent bitcoin bear Mark Dow.
He’s got impeccable mainstream credentials. Before turning his hand to trading, he was an economist at the U.S. Treasury and the International Monetary Fund.
And last week, Dow took to Twitter to make his uber-bearish call.
If you’re new to the crypto market, it’s easy to see why you might take it seriously.
The price of bitcoin logged a five-day losing streak after Dow’s bearish claim. And at $7,162, it’s now almost 50% below its high for the year, set in June.
But as you’ll see today, Dow has got it all wrong. And he’s not the only one…
As The Wall Street Journal reported it in today’s edition…
On Friday, the Shanghai headquarters of the People’s Bank of China and an arm of the local government pledged to continue to target exchanges, and warned investors not to confuse blockchain technology with virtual currencies. […]
They said they will shut down companies that market cryptocurrency exchanges registered outside China to mainland investors, or that introduce Chinese customers to these trading venues.
This may seem scary. After all, China is a huge potential market for bitcoin. But mainstream investors like Dow… and the mainstream press… freak out every time there’s a fall in bitcoin.
Don’t join them…
That’s how colleague Teeka Tiwari put it to readers of his Palm Beach Confidential advisory…
We’re seeing bitcoin go down to $7,000 and Ethereum [the second largest crypto] get whacked. And that’s taking the whole market lower. So the first question on your mind is, “Oh my goodness, is this it? Is this the end?”
No, it’s just another day in the land of cryptocurrency… and the wild volatility that appears to come out of nowhere for no reason.
Teeka first recommended bitcoin to his readers in April 2016 (when it was trading for just $428). He’s seen this movie before. And each time, bitcoin has not only recovered… but it’s also gone on to new highs.
Here he is with more on the idea that a crackdown in China is going to sink bitcoin for good…
Every now and again, the Chinese central bank gets riled up and goes on a mission to eradicate all the crypto exchanges in China. It’s tried to do this for about five years. Every time, the crypto market gets walloped on the news. This happened in 2015, 2016, 2017, and 2018.
There was a time when it seemed that every other week I was sending a video alert to my subscribers saying, “Let’s not freak out about what’s going on in China.” The government was getting super aggressive on the exchanges. I remember when bitcoin went from something like $7,400 back down to $5,000 on news like this. But once the uncertainty passed, it cleared the way for bitcoin to make that run to $20,000 in 2017.
Here we are again in 2019. And once again, it will pass. If bitcoin has proven anything, it’s that it’s impossible to shut down. So you’re going to see the same type of situation here. The uncertainty will blow over. Bitcoin prices will recover.
I’ve been in this game long enough to know that we will see volatility. And I’ve also been in this game long enough to know that we’ve got years and years of upside ahead of us. So, the worst thing you can do is panic sell on volatility.
It’s why Teeka stresses the importance of keeping your risk under control…
People are naturally greedy. When an asset is soaring, our instinct is to back up the truck and buy. But when it’s something as volatile as bitcoin, that can be a disaster.
When prices take a tumble… the pain of loss can be too intense… and we end up selling at or near the bottom of a price move.
That’s why Teeka urges his readers limit themselves to small stakes in individual cryptos.
For smaller investors, he recommends a stake of between $200 and $400 a coin. And if you’re a bigger investor, he recommends a stake of between $500 and $1,000 a coin.
As we’ve already seen, the upside potential of cryptos is huge…
Teeka’s Palm Beach Confidential readers booked wins of 2,050%… 11,004%… and even 14,354% on his crypto recommendations.
And his top open crypto position in the model portfolio is up 7,704%.
That’s why, if you haven’t already, you should consider getting some long-term exposure to cryptos. The best way to do that is with bitcoin.
Right now, the entire crypto market is down on fears that China’s cracking down on crypto. But as Teeka showed, it won’t stay that way for long.
So, try to fade out the naysayers who come out of the woodwork every time bitcoin prices dip.
When crypto prices skyrocket again, you’ll be glad you did.
We’ll be looking at another of our favorite long-term speculations – legal pot stocks.
They’ve had a horrible six months or so. But as you’ll see, there’s a lot of bullish news on the legalization front… and it’s only a matter of time before prices catch up.
November 25, 2019
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