…Especially When It Comes to Crypto.
Live in the moment, they say.
Well, truth is that sometimes the moment is a lie against which you must rebel…
Case in point: June 6, 2023. The Securities and Exchange Commission announces, all big and bad, that it has filed a complaint against crypto brokerage giant Coinbase for, allegedly, violating various securities laws.
The news sent Coinbase shares plunging to the high-$40s from mid-$60s a day earlier.
My immediate reaction was to log into my brokerage account and buy a bunch of Coinbase stock at $47.53, pretty much catching the low.
Today, Coinbase is north of $180, and had been well over $250 before the most recent (and temporary) pullback.
Many people on Twitter said I was lucky. That I was trying to catch a falling knife, and I’m lucky I didn’t lose a finger or three.
I disagree. I knew the stock market gods were giving me—and everyone else paying attention—a unique opportunity to own a future financial blue-chip at blue-light special prices (for all you who remember those at Kmart).
The panicked sell off was misguided…
The SEC was always going to lose its case. That was apparent from my reading of what the SEC was up to, as well as commentary from Congressional leaders, the crypto industry, and all that I know about crypto relative to the SEC’s complaint and what Coinbase actually does.
Jumping into Coinbase’s shares was an obvious trade with very limited downside and a huge amount of upside.
Which brings me to the real topic of today’s dispatch: The Big Lie of the Moment that’s happening right now…
As is always the case, crypto is once again in a temporary funk, pushed down by worries about the US economy.
But that is a momentary distraction, and that moment is the lie.
The truth is tomorrow—the future.
And for crypto, the future’s so bright, it’s gotta wear shades.
You already know I am a massive crypto fanboy. So much so that about 20% of my entire net worth is wrapped up in crypto investments.
This moment is yet another opportunity to own bitcoin and several other cryptocurrencies before tomorrow arrives. Because just as with the SEC/Coinbase kerfuffle, crypto prices are going to be much—much!—higher soon enough.
But why, you might rightly be thinking?
Well, we have a confluence of events that are tag-teaming to drive crypto higher.
First, let me stipulate that crypto loves an abundance of cash sloshing through economies because that cash ends up flowing into the crypto market. When governments open the money spigots through money-supply expansion, crypto is pretty much the drunk who brazenly walks behind the bar, wraps his lips around the beer tap, and guzzles down everything that flows out.
I stipulate that because we are moving back into a free-money age.
In fact, where the money supply had been shrinking in recent years as the Fed tried to corral inflation, it’s now expanding once more, according to the Fed’s own data on M2, the primary money-supply statistic.
We also have the Federal Reserve on the cusp of a new interest rate cycle that will see rates sliced several times this year and into next year. Financial markets around the world widely expect those cuts to begin this month.
Other major central banks have already begun to cut rates—the Bank of England, the European Central Bank, the Swiss National Bank, et al.
That makes money easier to access for consumers and businesses, meaning more money in the system… more cash sloshing around.
And, finally, we have the US presidential beauty contest in November. No matter which loser—I mean, candidate—wins, America is 100% guaranteed to see another mountain of debt added to the $35-plus trillion Uncle Sam already owes. Both candidates have already laid out plans that are clearly reliant on borrowing heavily…
The upshot is bad news for the dollar, bad news for anyone who wants America to get its fiscal house in order… and great news for bitcoin because it thrives when the dollar weakens. And when bitcoin goes up, it tends to bring the rest of the crypto market with it…
And so… now is the moment to be a buyer. Bitcoin’s price has come under pressure in recent weeks, but the tailwinds are apparent—just as the tailwinds were apparent that drove a temporarily depressed Coinbase up 3x or more.
I suspect we’ll see something similar with bitcoin—a price that rises from less than $60,000 today to more than $250,000 before this current bull market ends. (Longer term—meaning by the end of the decade—my bitcoin target price is seven figures.) And I’ve identified several smaller cryptos that could do even better in terns of percentage gains…
So this moment is a lie, which means this is the moment to be a buyer. If you’re already familiar with bitcoin, then you already known how to buy the granddaddy of crypto. And if you’re not familiar with the ins and outs of crypto market mechanics, then this is your alarm going off.
Time to rise and learn all you can about crypto, why it’s the future, and how and where to buy it and hold it for the massive price increase to come.
Coinbase represents the future of finance, which is why I loaded up on those shares on the cheap.
Bitcoin and crypto are the future of money and commerce… which is why every savvy investor should be loading up on them on the cheap today.
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