1. Public interest is the lowest in 9 months
One of the biggest arguments for the bears is that the public interest in the lowest it has been since September 2017. While this is factually true, I use the public as a contrarian indicator and in my opinion, when public interest is at relative lows, it is a great time to buy.
Below is a screenshot from google trends that shows the current level of interest for Bitcoin…
As I said before, we are roughly at the same levels as September 2017, but there is one massive difference…
The market cap in September was just above 100 billion, where as the market cap at the moment is near 300 billion, even with a massive decline in interest.
What do you think will happen when interest picks up again?
Warren Buffett famously said to be “Fearful when others are greedy and greedy when others are fearful.”
At the moment the majority of the crypto market are panicking, many newer investors are down by a significant amount and public interest is at a relative low. Investors are losing faith and the public are just not interested in cryptocurrencies during a bear market.
After reading the next two points, I think you’ll agree with me that now is actually a great time to get involved in the cryptocurrency markets.
The problem with the mass public is that they only get involved during mass rallies, hence the December rally we had, but for the best ROI buying when there is little interest and fear in the market makes far more sense.
Circle are quietly making the biggest moves in the crypto space.
What is Circle?
“We’re a global crypto finance company on a mission to make it possible for anyone, anywhere to help change the global economy…
Circle was founded in 2013 because we believed money should work like the internet — open, secure, free, everywhere. Today, we offer four products. Circle Invest makes it easy to invest in crypto even if you’ve never invested in crypto. With Circle Pay you can send money like a text — across the table or the ocean. Our OTC crypto desk Circle Trade moves over $2B each month. And our addition of Poloniex welcomes one of the world’s largest crypto exchanges.
Oh, and guess who Circle is backed by…. Goldman Sachs.
Circle invest — their mobile app — is very close to completion, and it will be one of the greatest drivers to mass adoption that we will see in this space.
In December, when the interest for Bitcoin peaked, people could not get involved in the cryptocurrency market. Almost all of the major exchanges had to close registrations as their infrastructure could not handle the mass demand that was presented in December. This, in my opinion, was one of the leading reasons why we have seen such a major market reversal.
The public are lazy, people do not want to wait weeks for exchanges to verify them, and they certainly do not want to set up wallets and have to send alt coins to altcoin exchanges.
It’s difficult and takes time to learn. For the average person, they will (and have) simply not bother investing in cryptocurrencies because the barrier to entry is too high.
Introducing Circle Invest…
I love this app and it isn’t even out (lol)
– $1 Minimum Buy In
Meaning literally anyone with access to the internet has the opportunity to invest in cryptos.
– Buy The Market With One Tap
I’ve been waiting for this for ages, all it takes is one click of a button and you will ‘buy the market.’ This is absolutely beautiful, and when the markets start to rally again, many people will put a lot of money in this option.
– Instant deposits
No more waiting 1–5 business days for funds to clear. Instant deposits will mean the markets can rally a lot quicker than in December (think about all the bank holidays we had then!).
Circle also have OTC (over the counter) trading desks in several locations globally. When institutional investors buy cryptocurrencies, they do not go to exchanges, they do it over the counter. Circle moves over $2 Billion worth of transactions monthly, so they can easily facilitate institutional orders.
Oh, and something to think about…
If Institutional investors thought the crypto market was dead, why would they spend over $400 million buying an altcoin exchange and go through the effort of creating all of the above?
There is a high chance that once the app is ready, they will pump the market with good news and cause the prices to rally and the mass public to suddenly become interested again, this time with the option to instantly buy the market!
Keep the bigger picture in mind.
3. Bitcoin ETFs
The SEC have just approved ‘VanEck SolidX Bitcoin Trust’ who’s purpose is to:
“investment objective of the Trust is for the Shares to reflect the performance of the price of bitcoin, less the expenses of the Trust’s operations. The Trust is not actively managed.”
Having an SEC approved ETF is just another way both institutional investors and the public can get involved in cryptos with less risk.
Just as a benchmark, stocks globally have a market cap of over 70 Trillion. If just 1% diversified into cryptocurrencies, we would be at all-time highs across the board. Oh, and that’s just for stocks and 1% is a very conservative figure in my opinion.
To conclude, these are just two examples of what is happening in the background. There are plenty more, and plenty more will pop up once the market starts increasing again. There is simply too much going on in the background for the crypto markets to be over. But the big money wants you to think that the market is dead, because when YOU sell, they will be the buyers on the other end.
Thanks for reading this article,