Anyone who’s glanced at a chart for two seconds could probably tell you crypto is in serious trouble.
Those people don’t know what the hell they’re talking about.
We are right about crypto, but they’re way off base. But we need to look at exactly how they’re wrong.
The first and most obvious point is that crypto climbs upward on a jagged slope. The gains are extremely strong, but there are peaks that usually don’t last very long. That’s what we saw in 2021 as well as 2017. And 2017 wasn’t even the first time it happened. In late 2014, Bitcoin almost made it to $400, and then fell below $300 for most of 2015.
So, the fact that, after the latest decline, Bitcoin is holding steady well above the 2017 peak is a good sign.
But even that’s doesn’t necessarily tell us exactly how and why crypto’s on the right track. For confirmation there, all we need to do is look at our own wallets, and up and down the street, in the news – all around us, really.
What I mean is, we can get confirmation we’re right by looking at crypto’s role in society, and how quickly adoption is accelerating.
Because that’ll tell us we’re right, for one thing, and it’ll give some clues as to the kind of upside we’re looking at long-term…
After This, There’s No Going Back for Crypto
There’s no returning to a pre-crypto era, and we’re sure as hell not headed for a “post-crypto era,” either.
If we were drifting that way, we would not be seeing the kinds of big-money moves that are unfolding in Bitcoin and cryptocurrency right now.
BlackRock Inc. (BLK), the biggest money manager in the world, just announced the creation of a trust for its institutional clients meant to track Bitcoin. Think Grayscale Bitcoin Trust (GBTC)… on steroids. And I do mean steroids – Grayscale has about $37 billion in assets, while BlackRock manages more than $10 trillion.
In terms of adoption, this trust represents a tremendous step forward for the entire world of cryptocurrency.
Blackrock is like the Jupiter of money management; it sits out there in the financial solar system being gi-normous and drawing other bodies into its orbit. It packs a punch in the investing world. And because this is an institutional trust, by definition, BlackRock is looking to get other gigantic money managers involved.
And that’s important because, like I always say – like you’re probably tired of hearing me say – we’re still in the early innings here in terms of crypto adoption and price action. Crypto is still in a place where the primary driver isn’t the ups and downs of individual coins. What matters to crypto right now is the status of the entire sector with investors.
What matters is the answer to this question: Is it “normal” to invest in crypto?
When people like Matt Damon show up to endorse crypto in Superbowl ads, it’s a sign of the answer slowly creeping from “no” to “yes.”
But what Blackrock is doing, that’s what’s really going to shift that needle.
By drawing institutions towards crypto exposure, Blackrock is pushing crypto into the mainstream. It’s also essentially throwing down the gauntlet and daring the rest of Wall Street not to follow them; BlackRock’s issuing a challenge here.
Before long, we’ll see smaller money managers – people who oversee $5 million, $10 million, $50 million, and who live and die on performance bonuses – regularly put their clients into digital assets.
That’s fantastic for crypto as a concept, and it’s fantastic for crypto as an asset. For investors, it means higher…. and higher…. and higher prices. That’s absolutely a ride you want to take.