The Overlooked Opportunity: Cheap, Hated, and In an Uptrend
The crypto market has quietly moved into the phase of disbelief, and it's an overlooked development.
Let me tell you what I mean. A few months ago I set out to help several people get exposure to crypto. I reached out to everyone I could think of that might be remotely interested. I was trying to gauge interest. What I found was that it was extremely hard. Not a single person wanted anything to do with the asset.
Fast forward a few months, and the crypto market has surged by more than 50%, significantly outperforming traditional stocks. Yet, I haven't received a single call back from those I reached out to earlier. It appears that either A) they are oblivious to the crypto market rally, or B) they remain disinterested, or even both.
Just last week, I had a conversation with a woman who had invested $10,000 in PancakeSwap, a popular crypto decentralized exchange on Binance, back in 2021 when it was priced at just $0.30. Her investment skyrocketed to over $40, making her a millionaire many times over. However, she eventually diversified into other assets and, like many others, experienced some losses. What surprised me was that as of last week, she expressed no desire to re-enter the crypto market.
It's shocking that someone who experienced such an extraordinary windfall, which is virtually unparalleled in any other asset class, would want to distance themselves from it. It's hard for me to believe.
Not long ago, I recounted a story about one of my mentors, a highly regarded market analyst, who adamantly asserted that I would never make money in crypto. This was just before the recent run up.
These stories highlight just how early we are in the market cycle. Such anecdotes are exactly what one should anticipate during the initial stages of a bull market.
The scars from the previous market cycle still linger, and crypto remains a deeply polarizing asset with limited interest from the broader public. People are hardly enthusiastic about the stock market, let alone venturing into something as volatile as crypto.
For you, the reader, this translates into the opportunity of a lifetime. You have the chance to invest in one of the best-performing asset classes in history while it remains cheap, hated, and in an uptrend.
The recent breakout in the market is a significant development. In fact, I highlighted this specific time period weeks ago as a crucial inflection point that would either make or break the crypto market's performance for the rest of the year. There will be big draw downs along the way but this move to the upside confirms that we are in the early phases of a bull market and are likely to witness a violent year-end rally.
While most people continue to remain on the sidelines in disbelief, influenced by concerns of an impending recession, high interest rates, and global conflicts, the price and time factors reveal a different perspective. Markets don't peak when everyone is standing on the sidelines and uninterested. Peaks occur when EVERYONE is fully committed and invested. We are nowhere near that stage, and it's likely to be some time before we get there.
You can make the choice to invest now, positioning yourself ahead of the curve, or you may find yourself buying in later at much higher prices when everyone else jumps on board. It's all about psychology, and it's how markets operate.