Bear Market Jitters (Day 2 of 4)

Editor's Note: In June of 2021, crypto's total market cap was just below $1.2 trillion. Fast forward to one month later, and crypto’s total market cap is back over the $2 trillion mark. So, what sparked the rebound? As always, it's difficult to pin it on any one thing. But that doesn't stop us from poking around. Let's dig in... (Day 2 of 4) Bear Market Jitters Every time Bitcoin prices slump, we get a slew of questions asking why… Most of the time we have no answer. Bitcoin can move without rhyme or reason. It can be up $1,000… down $1,000… literally in a day. In March of 2020, we saw Bitcoin drop 50%. Six weeks after that... it rose 100% off the bottom. In May of 2021, shortly after hitting a new all-time high, we saw the market fall a worrisome 50%. Three months later... prices crawled back ~60% off summer lows. It bears repeating: On any given day Bitcoin can do anything. So why would you want to risk your money on something so unpredictable? Here’s the thing most people miss about Bitcoin… Over the short term, it’s difficult to gauge what it’ll do. But over the longer term, its massive increase in value just might be the easiest prediction we’ve ever made. 🔎 Recommended Research Urgent Alert: The Next Bitcoins Weiss Ratings, the only financial ratings agency in the world that provides ratings on cryptocurrencies, is now publishing [a list of rare, undiscovered cryptos]( with the best potential to become the next Bitcoins. They won't replace Bitcoin. But collectively, they could create more wealth for early investors than Bitcoin ever has or probably ever will. [To find out more, go here now](. Considering that prices collapsed nearly 50% in May (as shown in the chart above)... the current narrative for the "common" investor is that crypto (specifically bitcoin) is in yet another bear market. But we don't necessarily agree. The people who think Bitcoin is in a bear market right now are the same people who fail to look at the big picture. They fail to take a step back and appreciate all the progress that has conspired over the years. They fail to realize that despite all the market corrections, BTC prices are still up 43% YTD... 301% YOY... or ~700% since 2018. The average investor gets way too caught up in Bitcoin's short-term movements. They dabble a little bit of money in the market, only to look at the charts every day and eventually pull their hair out as watch Bitcoin's volatility go to work. If you've fallen victim to this kind of stress, here's what we need you to know: Three things drive Bitcoin’s value. - Usefulness - Rarity - Adoption (usage) And over the years, despite all the price corrections, flashy headlines, hysteria, scammy altcoins, volatility, bear markets, etc – those three main price drivers have only strengthened. Part II: What's Driving Prices Up Again? To understand where things might be going next, let’s take a look at the bigger picture... and all that's been happening under the radar in the past few months alone... Global Institutional Adoption Is Still A (Big) Thing A July Fidelity survey found seven in ten institutional investors expect to invest in or buy digital assets in the future. Furthermore, Global crypto adoption has risen 881% in the past 12 months according to Chainalysis. VC's Are Pushing Boo-Koo Amounts Of Capital Into Crypto... At A Record Pace Ten companies have raised nearly $4 billion in 2021. Crypto exchange FTX, for instance, raised a record-breaking $900 million in July 2021. 🔎 Recommended Research [Are You Ready For Financial Lockdown?]( Few Americans seem to realize the repercussions of $11 TRILLION being pumped into the U.S. financial system in the past 18 months. If you’re counting on IRAs, 401(k)s, insurance policies, annuities, pension plans, stocks, or bonds, you NEED to prepare for what one former Goldman Sachs trader is calling “[Financial Lockdown]( Learn what’s happening now, what’s coming next, and most importantly, what YOU can do to protect and grow your money in the years to come. [Click here for details]( (includes 4 steps to prepare now). A Slew of Optimistic Reports Around Crypto Payments Have Emerged Walmart, Amazon, and Apple all listed crypto jobs, an increasing number of athletes are choosing to get paid in BTC, and America’s second-largest mortgage lender announced it would soon accept BTC. Blackrock, the world’s largest asset manager, has made significant bets on the mining industry. The firm, which oversees $9 trillion in assets, took roughly 6% stakes in public mining companies Marathon Digital Holdings and Riot Blockchain. Fidelity made similar investments in both companies in July. Ethereum Just Had A Major Upgrade Things just got a bit easier for Ethereum users thanks to gas fees becoming a bit more predictable. Since the London Fork upgrade, the Ethereum blockchain has been much more efficient and has triggered upward price momentum. Meanwhile, Cardano (ADA) revisited $2.00 after a long-awaited announcement about smart-contract functionality. NFT Insanity Continues NFT marketplace OpenSea and NFT game Axie Infinity have seen combined revenues north of $400 million in the last month alone. Institutional Money is Flowing Into BTC trusts, Showing Wall Street’s Growing interest in Gaining Crypto Exposure In the Summer of 2021, J.P. Morgan and Wells Fargo registered Bitcoin trusts, while new institutional money has been flowing into the $31.7 billion Grayscale Bitcoin Trust. Bitcoin Mining Power Has Recovered 40% From July Lows Following China’s Ban While some miners saw a temporary revenue boost from decreased competition, others have relocated to cheap-energy regions ranging from Kazakhstan to Texas — with over a dozen firms in North America racing to restore some of the six gigawatt capacity that went offline in China. El Salvador’s Bitcoin law, which makes the crypto legal tender, takes effect in q3 2021 President Nayib Bukele tweeted about the official crypto wallet, Chivo (slang for “cool”), and the widespread rollout of Bitcoin ATMs — both of which will allow citizens to quickly convert BTC and dollars without commissions. Residents who download the wallet will receive $30 of BTC to get started. Part III: Final Thoughts As always, crypto moves fast and is notoriously hard to predict. But for now, it appears that a broad and consistent array of positive news has propelled this market closer to all-time highs. Remember, at the end of the day... Investment into the sector continues at a rapid pace as a legitimate hedge/ portfolio diversifier (Usefulness)... Demand is still rising (Adoption)... Institutions/funds are still gobbling up the free float (Rarity)... Each one of these narratives is driving up Bitcoin's value. And despite the inevitable, sometimes drastic, price swings... All the fundamentals are still in place. Best, CoinSnacks Copyright © 2021 CoinSnacks, All rights reserved. CoinSnacks 5500 Military Trail Suite 22-250Jupiter, Florida 33458 [Add us to your address book]( [unsubscribe](.