Last week, the price of bitcoin dropped sharply after Chinese officials announced they would be closing most cryptocurrency exchanges.
In the update we sent Friday, when bitcoin had dipped to around $3,000, I said this was no reason to panic, and definitely not a reason to sell. In fact, we called it a buying opportunity.
The last time the Chinese government banned bitcoin, it reversed the situation after only a few months. And remember, China is just a single market. Cryptocurrency is global. I expect more announcements from China in the next few days. And they could very well trigger more selling.
But it’s important that you keep the big picture in mind. Following this correction, the cryptocurrency market will begin a new climb that will reach new highs.
The climb back up has already started.
Bitcoin is up more than 20% from the lows reached last Friday, and it’s currently sitting around $4,000.
As I suspected, investors left billions of dollars on the sidelines while patiently waiting for a major correction.
Even with the upward trend intact, remember that corrections will continue to happen in the cryptocurrency market. Take advantage of them by adding to your portfolio on dips.
If you haven’t already, be sure to read my research report “How to Score a Massive Fortune on the Next Three Digital Currency Superstars” (available only to First Stage Investor subscribers). This report outlines the cryptocurrencies I’m very bullish on and explains how to add them to your portfolio.
Also, don’t forget to check out my video tutorial on how to purchase cryptocurrency.
In other news from the cryptocurrency world…
“Ethereum will match Visa in scale in a ‘couple of years’ says founder”
Vitalik Buterin, the dynamic founder of Ethereum, and his team of top-notch developers have been hard at work improving the scalability of their network.
“The Bitcoin Cash Network Continues to Grow With an Ambitious Roadmap”
It’s been more than 48 days since the hard fork, and the Bitcoin Cash network is alive and well.
“John McAfee challenges Jamie Dimon’s bitcoin skepticism”
The British-American computer programmer and founder of McAfee Associates challenged the JPMorgan CEO’s assertion that bitcoin is a “fraud” that will eventually blow up.
“Will Bitcoin Be Banned?”
Last week, I appeared on The Oxford Club’s Market Wake-Up Call to discuss all things cryptocurrency, including my take on why big banks are embracing blockchain technology.
Co-Founder, First Stage Investor