2 Legitimate Questions About Crypto

You’re cooking pasta and you’re watching the water… and the pot never comes to a boil. Frustrating, but it’s that whole “watched pot” truism.

And then you turn away for a moment to deal with the kids or a phone call or whatever, and just like that the pot comes to a boil instantly and pasta water is burbling onto your stove and making a right mess of the joint.

Just the way it goes.

Which has nothing to do with crypto.

But everything to do with crypto.

And I tell you this because of a couple of questions raised in a live Q&A I hosted over the weekend for my Crypto Profits Masterclass.

The two particular questions were:

1. When will the bull market in crypto begin?

2. A particular crypto I recommend is down 75% from its all-time high, and why would we expect it to ever recover?

Very solid questions, actually. Legitimate concerns for anyone involved in crypto.

Let me address them in order since the answer to #2 plays into the answer to #1.

When will the bull market in crypto begin? It already has begun.

Back in January 2023, I sent out a dispatch saying that the animal spirits were alive and kicking in crypto. That I saw them in action in daily dealings on “crypto Twitter,” and that that moment was a good time to snap up bitcoin, Solana, and Ethereum.

Since then, bitcoin is up about 190%. Ethereum, the laggard, is up more than 60%. Solana, meanwhile, is up 550% (and at one point earlier this spring was up nearly 770%).

So, yeah. The bull market in crypto is confirmed.

Since the spring, however, crypto has fallen into a mini-funk for particular reasons (primarily tied to the Federal Reserve and on-again/off-again worries about what the upcoming presidential election will mean for crypto as an industry).

But every bull market in every asset class is marked by periods of temporary pull and consolidation. High-flying assets always get ahead of themselves in a bull market, and they dip for a while.

To me, there’s zero worry in that.

That just marks an opportunity to add to your position.

If nothing else, it just means you get to sit on your hands for a while and go about daily life without checking your daily wealth progression (yes, I do this daily too when crypto is running hot).

And that leads me into the answer to Question 2: Why would we expect a crypto that’s down 75% to ever recover?

Well, this is crypto.

And crypto moves and changes direction with the speed and agility of a bat chasing a mosquito at dusk.

Let’s return to Solana for a moment…

From its lows below $10 per coin in December 2022, SOL, as it’s known, was up more than 2,000% by the spring of 2024. Not many stocks are doing that regularly. Certainly no bonds or currencies or real estate are doing that.

But let’s look at a monstrous move over an even shorter period: One of the tokens I recommended as part of the portfolio in my Frontier Fortunes service. At one point, we were down more than 90% as Crypto Winter ravaged the industry in 2022.

In October 2023, you could’ve bought this particular crypto for about roughly 8 cents per token.

By this past March, just five months later, it had rocketed 3,160% higher. In Frontier Fortunes, we closed out half our position with a multi-hundred percent gain.

That’s how fast crypto can move.

You turn away from your wallet for a moment and boom goes the dynamite… and you open your wallet again one day and realize your several hundred dollars or several thousand dollars that was in there before is now tens of thousands of dollars, if not more.

So, that’s why a particular crypto still down 75% from its all-time high doesn’t faze me. I know it’s one of the most important cryptos in one of the most important segments of the cryptoconomy—something called an “oracle,” which trolls the online world to fetch data and bring it onto the blockchain. Sounds dull. It is dull. But the services oracles provide are an absolute necessity for the world of “smart contracts” that is rapidly emerging, and which will rule the cryptosphere in coming years. (Smart contracts are contracts that self-execute when certain conditions are met; there’s no need for a lawyer or middleman or to worry about the delinquency of the other party.)

As I told my Masterclass attendees, I am buying this crypto every single week through an automatic dollar-cost averaging plan at Coinbase. I truly do not care about the price.

I know crypto moves in sectors, just like stocks move in sectors.

Oracles are a necessity.

Investors always return to necessities.

They will absolutely return to one of the most important oracles on the blockchain.

And when they do, down 75% is going to be up several hundred percent.

It’s just the way crypto works.

You’re waiting, waiting, waiting for the pot to boil…

And just when you’re no longer paying attention, you have pasta water all over your stove.