WOOF! There’s been absolute crypto carnage this week on Wall Street. Coinbase’s brief online outage Wednesday morning — due to the major crypto sell-off that began last week — may have been the nail on the coffin for this frenzy. The news got Joy of the Trade’s Jeff Zananiri 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 Wednesday: 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 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…
We beg to differ.
Jeff 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.
Bitcoin is destined to keep falling in 2021. It’s written in the stars.
Why Bitcoin Will Keep Falling in 2021
Bitcoin has successfully erased all its gains that came when Tesla announced it 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 Jeff and I are professional money managers — and 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 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 our 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.
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