Today may be the best time to BUY bitcoin since November 2017.
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Have you missed out on cryptocurrency bull market? Or perhaps you’re simply wishing you’d invested more cash into cryptos early last year. Now may be your shot at “buying the dip.”
In Wednesday morning trading, bitcoin is trading at $10,350 on the Coinbase exchange. That marks a 46% decline from the all-time high of $19,250 on Dec. 17.
Everyone knows that bitcoin is extremely volatile. And it regularly drops by more than 30%. In the past, every one of these bitcoin crashes or pullbacks has proven to be a buying opportunity.
Let’s take a look at three major bitcoin crashes in the last four years.
Bitcoin Crashes: The Meltdown of 2013
In April, the price of bitcoin plunged from $233 to $67 in just one day. That 71% drop spooked many bitcoin traders. Those who were confident enough to invest had a chance at 247% gains within the next seven months.
Mt. Gox Hacked in 2014
In Feb. 2014, a Tokyo-based exchange called Mt. Gox was handling 70% of bitcoin transactions. The exchange was hacked, with thieves walking away with 850,000 bitcoins. Today’s value would be $8.8 billion – making it the biggest heist in history.
The hacking scared many investors, who felt that their bitcoins were no longer a safe place to keep their wealth. As a result, the price plunged 49% in less than a month.
Bitcoin Crashes: Summer 2017
In the first half of 2017, bitcoin made a rapid 300% ascent from $1,000 to $3,000. After a huge move, some speculators got nervous about the underlying technology and software that was supporting bitcoin.
This was enough to send bitcoin plunging 36% in just one month. Within 60 days, the cryptocurrency was trading above $4,000, giving opportunistic traders a quick 110% profit.
Right Now: January 2018
Today, bitcoin prices are under pressure. With a 46% decline in just one month, lots of folks are wondering “what’s next?”
It’s a logical question. After all, lots of folks trading cryptos were NOT in this market during the last major crashes (summer 2017, Feb. 2014 or in 2013).
After a major run-up in price, we’re seeing a temporary pullback in the price. And this selloff has been sparked by increased regulation.
In South Korea, the finance minister said the government is considering shutting down cryptocurrency exchanges or introducing new regulations. China is similarly cracking down on bitcoin mining. And this week, the Chinese central bank said that the government should ban the trading of cryptocurrencies.
Government intervention and threats have sparked selloffs in bitcoin in the past. And they’ve proven to only be temporary.
Anyone who understands how bitcoin works will understand that the cryptocurrency is designed to be out of reach of governments. The distributed ledger technology makes it impossible for any government regulator to successfully stop its use.
Bitcoin speculators could view this recent pullback as a buying opportunity.
One global bitcoin exchange is getting ready to go public. And it could benefit from the shutdown of cryptocurrency exchanges in South Korea.
Yours in Profits,