As you, dear regular readers of this newsletter, will surely know, I generally like to act countercyclically. That’s why I never let myself be disturbed in 2018 or 2019 and consistently advised to invest in certain coins and tokens again and again. As you then experienced in 2020 and 2021, that wasn’t the stupidest idea.
In general, the best investments of the past ten years have been cryptocurrencies, technology stocks and whiskey. Yes, you read that right, whiskey. Of course not standard whiskey à la Jack Daniel’s, which one likes to drink with cola. But selected whiskeys, single malts from Scotland or Japan. Incidentally, I also own a whiskey collection. 😉
But let’s get back to cryptocurrencies. I’m still sticking to my investments here. But I am fully aware that we will soon arrive at the (temporary) zenith. In this newsletter I would also like to explain to you why that is the case. Before I get to that, however, I would like to briefly address a very recent piece of news.
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Lionel “Leo” Messi also receives crypto tokens!
Yes, you read that right. As I learned a few minutes ago, soccer superstar Lionel “Leo” Messi will receive part of his salary (around 40 million euros) in crypto tokens after moving from FC Barcelona to Paris Saint-Germain. Specifically, it is about the Paris Saint-Germain Fan Token (PSG), whose price development you can follow here at any time: https://coinmarketcap.com/currencies/paris-saint-germain-fan-token/
Admittedly, this is not a sensation. Because other athletes are already having their salaries wholly or partially paid out in crypto currencies, Bitcoin (BTC) is a popular choice. What else should you know about it? Well, the PSG Fan Token was issued by the club in collaboration with Socios.com, in whose crypto project Chiliz (CHZ) you can also invest!
One (last) high is still missing, but then …
Which brought me to my main topic today. Many thought that the correction phase from May to July was the new “crypto winter”, we had seen the highs for most coins and tokens for a long time. For two or three weeks, however, the cryptos have been on the gas again and some coins / tokens have now completely, or at least largely, made up for their price losses from the correction phase.
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This is atypical for a “crypto winter”. It is true that there are occasionally, sometimes longer and larger, course recoveries in one of these. However, an overarching downtrend always remains intact. The fact that there were concrete reasons for the – undoubtedly severe – correction from May to July (Elon Musk and the attack by the Chinese communists on the miners in the country) speaks against a “crypto winter”.
From a chart technical point of view, one last high is still missing, as the Elliott Waver in particular among the chart technicians will confirm. Last but not least, the mood, the so-called sentiment, is not yet euphoric enough. Yes, there was definitely euphoria until April / May. But as a result of the very sharp correction just mentioned, many investors were finally grounded again. Or, to put it in other words: if there were euphoria, Messi would have had his entire salary paid out in cryptocurrencies.
What we can and should take with us today: The crypto markets went through a severe correction from May to July, but are now back on track. Sure, there can and will always be short-term price setbacks. But these are still entry and purchase opportunities. Because in the next few weeks and months I expect new all-time highs for Bitcoin (BTC), Ethereum (ETH) and Co.
But when these are achieved, you have to be careful. It should continue to run a little further, because before a speculative bubble can burst, it has to be excessively inflated. This has recently been seen well in the shares of BioNTech and Moderna, for example. But when the speculative bubble bursts, you should be out. In my opinion, we are therefore just at the beginning of the last phase of the great crypto price rally.
By 2022 at the latest, probably by the end of the second quarter at the latest, we will see an end to the wonderful increase in money through crypto currencies. Prepare yourself mentally today – and keep reading this newsletter diligently. Because when the time comes, timing is essential. Mine won’t be perfect either, that’s clear. But at this point I will try to blow as early as possible to get out. Promised!
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How will Bitcoin develop now? Is your money safe in this stock? The answers to these questions and why you need to act now can be found in the latest analysis of the Bitcoin share.