Whether you own real estate, stocks, cryptocurrencies, or other assets being able to predict, or at least have a sense of the future market movement will help determine your future financial success.
The strategy is simple, buy low and sell high. However, to do so in a declining market is very difficult. While none of us have a crystal ball, we can learn from history and current economic and financial events to help assess future market conditions and determine the best investing strategy.
For starters, we know that markets are cyclical and always have been throughout time. Knowing the market cycle and when to invest and when to sell is key.
Some of the greatest wealth in history was made during the great depression. And while recessions and depressions are troubling for the average person, it's the contrarian investor who sees the opportunity in these markets.
Once in a generation opportunity to build wealth
We are on the cusp of a once-in-a-generation opportunity to build wealth right now. While many are panicking and markets are down across the board, you can set yourself up for more wealth than you have ever imagined if you prepare yourself for what is coming and the opportunities it provides.
The Upcoming Global Financial Crisis
This recession we are entering into is going to be like none other we have experienced in our lifetimes and over the upcoming months in these weekly dispatches, I will highlight how to take advantage of these opportunities to create generational wealth within the cryptocurrency space.
What's happening in the global markets now?
The Euro is at a 20-year low, the British pound has fallen to its lowest level against the dollar since 1985 and this is the second consecutive quarter the US has had negative GDP numbers (technically making it a recession).
Just last week, The Pope instructed the Vatican to move all its funds back to the Vatican Bank by Sept 30th (Interestingly, this is a few days after the end of this Shemitah Cycle).
Even Michael Burry, the contrarian investor (the movie The Big Short was made about him) who made a fortune betting against everyone in the 2008 financial crisis has exited all his positions in the market - except one. The only stock he is currently holding is the GEO Group, a company that invests in private prisons and mental health facilities!
One-third of Pakistan is underwater. Many European countries like France and Germany are experiencing a +1,000% increase in their price of gas, with countries like Switzerland even imposing imprisonment for heating their homes above 19°C.
Individually, each of these events may not be significant but aggregated, they are a sign of a global financial market crisis. Not to mention increasing global supply chain shortages and food shortages being experienced around the world for the last 2 years.
All these events will have an impact on the global financial markets and as a consequence the crypto markets. With rising inflation, rising interest rates and quantitative tightening, many companies will be looking to sell off their highly risky assets, which will include cryptocurrencies.
There is also the implementation of a new financial monetary system, the biggest change to our financial system in 50 years, taking effect in November (ISO 20022).
While the future outlook for the economy and global financial markets does not look good, for the contrarian investor massive investment opportunities will soon present themselves.
Upcoming Significant Crypto Events
- September 15th - Ethereum Merge
- September 15th - Mt. Gox will release 137,000 BTC - This could have a massive impact on the price of Bitcoin.
Mt. Gox to Release 137,000 BTC
Mt. Gox, which was hacked in the early days of crypto will be released to the market 137,000 Bitcoins to their investors. For these investors, this return of their Bitcoins would be equivalent to a 4,000% profit from the original prices they purchased them at.
Many of these investors will be looking to sell, putting downward pressure on the price of Bitcoin, potentially lowering it even more and taking profits from their newly returned bitcoin.
Low Cap Gainers in the last 30 days
Although the market has been moving sideways over the last month, within the smaller capitalized projects there have been some significant gains. The projects listed below fall within the Nano, Micro & Small market capitalization.
Here are a few low market cap projects that have performed well in the last 30 days:
- Aidos Kuneen +416% - Privacy coin, zero fees, quantum secure (Nano-Cap)
- DEI +460% - Decentralized Finance Application (Nano-Cap)
- Kaspa +223% - Fastest fully scalable Layer-1 blockchain (Nano-Cap)
- QLC Chain +246% (30-days) Decentralized Network-as-a-Service (Nano-Cap)
- Sperax +189% (30-days) New Stable Coin (Nano-Cap)
- Bone ShibaSwap +100% (30-days) Governance token of Shibaswap (Small-Cap)
Monthly Altcoin Pick:
We will continue with our monthly altcoin picks, focusing on projects with long-term potential with our next Altcoin pick will be released near the end of September.
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Until the next report,