Even if you’re not investing in cryptos right now, you’ve probably seen the headlines:
- Crypto exchange Coinbase (COIN) just went public and is now worth $50 billion.
- Bitcoin and Ethereum continue to hit new all-time highs.
- And “alt coins” like Dogecoin are now worth more than major companies including Moderna (MRNA), Ford (F), and Chipotle (CMG).
Given all the heat in the sector, you might be tempted to dive in headfirst. But before you do, it might be wise to hit the “pause button”…
After all, haven’t we seen this movie before? Wasn’t it just a few years ago that everyone and their mother was plowing money into cryptos and earning a fortune?
And wasn’t it just a year or two later that it all came crashing down, with prices falling 80% or 90%?
So before you invest a penny here, you really need ask yourself something:
Will this time be different?
The “Little Guy” Takes Charge
To answer these questions, let’s compare today’s crypto bull market to the one that peaked in 2017.
In 2017, Bitcoin had been around for several years, but it was still a niche technology and investment.
For the most part, traditional financial institutions were extremely negative on it. Jamie Dimon, the CEO of J.P. Morgan, famously called cryptos a “fraud.”
In other words, Bitcoin and other cryptos had almost no institutional support.
So where did all the hype and price appreciation come from?
Simple: individual investors like you! People who were sick and tired of seeing the world’s money supply controlled by a small handful of bankers — or investors who were looking for big paydays.
But this time around, it’s a completely different story…
You see, today, it’s not just individuals like you who are pushing the crypto market higher…
This time around, the catalyst is from major banks and financial institutions.
- One of the world’s largest payment processors, PayPal (PYPL), recently began accepting bitcoin.
- CNBC just reported that “Bitcoin is coming to hundreds of U.S. banks this year.”
- And last month, the “crypto haters” at J.P. Morgan broke down and announced they’d finally be helping their 51 million clients invest in bitcoin.
This is big news. It speaks to the fact that things are truly different this time around.
The crypto market today isn’t being supported solely by individual investors or speculators…
Now it’s being pushed higher by massive institutions with trillions of dollars at their disposal.
Add it all up — and all indicators suggest that, not only could crypto prices go much higher than they ever have before…
But today’s crypto bull run could last.
Why the Change of Heart?
But perhaps you’re curious:
Why are some of the biggest financial institutions finally getting behind cryptos? Why the change of heart?
Well, as Matt will explain next week, it’s because, for the first time in nearly 200 years, traditional financial businesses are facing an existential threat.
You see, because of the latest developments in the crypto sector, these behemoths could potentially see billions of dollars in profits get wiped away in the coming years — and they’re going to do everything they can to make sure that doesn’t happen.
The thing is, this might be bad news for them — but it’s great news for you.
Matt will explain more in next Wednesday’s issue.
So stay tuned!