WOOF! There’s been absolute crypto carnage this week on Wall Street. Coinbase’s brief online outage Wednesday morning — due to the major crypto coin sell-off that began last week — may have been the nail on the coffin for this cryptocurrency frenzy. The news got WealthPress Senior Strategist Roger Scott and I talking… and we ended up compiling a list of the reasons why Bitcoin will keep falling in 2021.
Just look at the news from today: Bitcoin tumbled to almost $30,000 during the morning, fueled by investors’ desires to get cryptocurrencies out of their portfolios.
Bitcoin hasn’t traded below $30,000 since January 2021, and had plunged 50% since its record April high of $64,829.
And now we just witnessed a 40% sell-off from recent highs in the past week.
That means these more recent crypto traders are finally getting a taste of the types of risks that come with it.
While some investors can make the argument that having Bitcoin as a part of their assets is a good way to diversify their portfolio and a good form of hedging…
I beg to differ.
Roger and I are treating all cryptocurrencies as speculative. And if you happen to come across one of those crypto gurus urging you to make Bitcoin part of your investments: RUN.
Why?
Bitcoin is destined to keep falling in 2021. It’s been written in the stars.
Why Bitcoin Will Keep Falling in 2021
Bitcoin has successfully erased all its gains that came when Tesla announced it had bought$1.5 billion worth of the crypto.
And while there will be a solid place in the market for cryptocurrencies in the future, now is not the time to try to capitalize.
Being as Roger and I are professional money managers — have been for decades — it’s become part of our DNA to be intuitive and paranoid people. We’re always thinking about how much we could lose and how much we’re willing to risk.
As things stand now, it’s safe to say we’re not willing to risk a dime on Bitcoin…
If there was any hope left that Bitcoin would stop falling in and become a mature asset class in 2021, it’s been shot down after having 30% and 40% and 50% drops in price this year.
Bitcoin is starting to become a terrible player on Wall Street and it’s time for investors to bench the cryptocurrency.
But what actually scares me the most about Bitcoin isn’t its rollercoaster of volatility… It’s the sheer size and amount of money in it.
And it’s causing a spillover effect that could jeopardize some investors’ most beloved assets.
Check out my short video below to learn more about how and why Bitcoin will keep falling in 2021. We’ll also cover which stocks we expect to make money during May.
Be sure to share your thoughts in the comments section below.
And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.
P.S. Wall Street legend Chuck Hughes is about to share the secret behind his Triple Threat strategy.
It’s the exact same strategy that gave him the chance to grow his small $5,900 trading account into over $212,217…
In just two years!
Chuck’s never shared details with the public on how he achieved that number…
But after some major convincing, I talked him into offering a select number of traders the opportunity to not only get in on these trades, but to master the stock market.
