The Time for FOMO is Now
[Originally posted on July 19, 2023]
(Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.)
We believe the window for optimal crypto asset investment entries is quickly closing.
ETF applications are flooding in, regulations are in process (XRP with a big win last week), BTC forecasts are climbing higher, and the cycle lows of 2022 are getting farther behind us. We want to take smart money into our fund that is willing to invest ahead of the FOMO, when the risk might be slightly higher, but the reward even more so.
If you’re on the fence on whether you should have more exposure or not, now is the time.
Here are three reasons why now is the time:
1 — Institutional Smart Money
Smart institutional money is starting to take notice of all of this. This is evidenced by the flurry of ETF activity over the last few months, which could result in a BTC ETF approval as soon as this quarter (August/September). Last week the CEO of Blackrock said “More and more of our global investors are asking us about crypto…Because [crypto] is so international, it’s going to transcend any one currency.”
We’ve also started to see institutional research desks start to up their Bitcoin price forecasts:
The impact of sizable institutional investment in the crypto space (currently only ~$1T asset class) would be massive.
2- The Bitcoin Buy Zone
The Bitcoin Buy Zone, shown here as the shaded region on the Logarithmic Growth Curve (LGC) chart, has proved an impeccable time to buy and hold Bitcoin for the long term. The upper limit of the Buy Zone (shaded area below) is currently around ~34K up to ~40K. This signal has been spot on for multiple cycles, we’re currently nearing the top.
In 2015, after we broke the Macro Downtrend, BTC price soared 6,600%. In 2019, BTC price increased another 2,100%. BTC broke out of the Macro Downtrend in March of this year and history suggests we’ve got plenty of room to the upside.
We often use BTC to serve as a macro indicator of the broader crypto space. However, we are trading and identifying opportunities across the entire ecosystem.
3- Alt-Coin Opportunities are Primed
A diversified portfolio will outperform just holding BTC. As a fund, our benchmark is against a buy-and-hold ETH/BTC equal weight index. Inception to date, 8DC has outperformed this benchmark.
A U.S. District Judge ruled against the SEC in a long standing case against Ripple ($XRP). The judge stated that it depended on how the token was being sold to determine if the token was a security or not, defining token sales on exchanges as non-securities. Coinbase, Kraken, and many other exchanges immediately relisted $XRP.
This has huge implications going into a bull market. Alt-coins (non-BTC/ETH) have a clearer path to safely being listed across exchanges. With less fear on the alt-coin market, we expect more liquidity, and outperformance in a bull market. This chart shows a beautiful falling wedge pattern on the broader crypto assets space (excluding BTC and ETH) setting up a move to $4T on a breakout of this pattern. This aligns well with our target of the Total Crypto Market Cap reaching ~$10T over this next cycle.
Optimize your Crypto Holdings with 8DC
Now is the time for FOMO, not in a couple years at the cycle top.
It takes discipline and patience to be a successful crypto investor. At 8DC, we are constantly living and breathing crypto markets so you don’t have to. We can be your trusted partner to help you optimize your crypto stack through market timing and broader asset diversification across the crypto ecosystem.
HODL Strong.
~ 8DC Team
