Why Crypto is So Volatile

(and how to use it to your advantage) June 19, 2024 [WEBSITE]( | [UNSUBSCRIBE]( Yes, crypto is volatile. Here’s how to take advantage of it. Why Crypto is So Volatile It’s been a rough week for crypto investors. That’s why, although our offices are closed today… I didn’t want to leave you empty-handed. This morning, I pulled something off of the shelf from our private crypto library. This library, made up of the best (and most actionable) crypto knowledge on the net, is reserved exclusively for our Early Stage Crypto Investor members. But we’re letting this one “leak,” with certain portfolio details redacted. Check it out below. Why Crypto is So Volatile (And How to Take Advantage) ESC Crypto Library Dear Reader, Cryptocurrencies, despite their rising popularity, still represent a small market compared to traditional financial sectors, making them prone to significant price swings. Here, we'll examine seven factors driving this volatility: the developing market, security breaches, market speculation, regulatory uncertainty, media coverage, limited use cases, and liquidity cycles. Each factor presents unique challenges and opportunities for us as investors. Let’s begin. - Developing Market Despite the growing popularity of cryptocurrencies, the market is still relatively small compared to traditional financial markets like gold (worth $7.9 trillion) and the US stock market (worth $93.7 trillion). The smaller scale of the crypto market makes it more susceptible to significant price fluctuations caused by modest factors. The opportunity: We see crypto eventually becoming a $10 trillion market. And then we also -- further out in the future -- see it becoming a $100 TRILLION market, going beyond most analyst’s wildest expectations. It’s not a guarantee, but if it happens you’ll look back on today -- hovering around 2.5 trillion -- and be glad you got in. Especially when it comes to XXXXXX and XXXXXX . - Security Breaches Crypto exchanges and platforms are often targeted by hackers, leading to security breaches and the loss of funds. These incidents can cause panic among investors, leading to a sell-off and a drop in prices. For example, in 2017, the South Korean Bitcoin trading firm Youbit experienced losses of up to 17%, causing the company to declare bankruptcy, instilling fear among investors. The opportunity: We’re always on the lookout for crypto projects that can help keep the hackers at bay. For example, some blockchains are working on ways to become “bot free.” That’s a huge deal in the age of AI and offers a massive opportunity for investors if they succeed and take market share in DeFi. - Market Speculation Speculative trading is a significant contributor to cryptocurrency volatility. Traders often try to predict price movements and buy or sell accordingly to make quick profits. This speculative activity can exacerbate the already volatile nature of the market, as traders constantly attempt to anticipate the ups and downs of cryptocurrency prices. The opportunity: While we’re long-termers, there are short-term opportunities in the markets. We don’t mess with purely speculative frenzies like meme tokens, but the most interesting blockchain right now with speculative flurries is BASE, Coinbase’s public blockchain. This is where the puck is going. And it’s why we’re invested in XXXXXX and XXXXXX. James' New Warning: "FINAL Crypto Wealth-Building Event?" James Altucher just issued a critical crypto warning. Since the Bitcoin halving took place in April, BTC is up 45%, which is enough to turn $10,000 into $14,500 in 2 months. But James believes there are 6 other coins that have the potential to turn $1,000 into a six-figure nest egg in the next 12-18 months. These coins are already on the rise, so you have to act fast. A wealth-building event like this may never happen again in crypto. [This is your chance - click here for the details.]( - Regulatory Uncertainty The lack of clear regulations and the different approaches taken by governments worldwide also contributes to volatility in the cryptocurrency market. Uncertainty about the legal status of cryptocurrencies and the potential for future regulations can cause investors to become cautious, leading to price fluctuations. The opportunity: Regulatory clarity will be the TOP driver of mass-adoption. If you thought Blackrock’s move into the tokenized security space was BIG, just wait until the government creates clear frameworks. Then it’s off to the races. - Media Coverage and Public Perception Media coverage and public perception can have a significant impact on cryptocurrency prices. Positive news and increased adoption can drive prices up, while negative press, such as reports of scams or hacking incidents, can lead to a sell-off and a decline in prices. The opportunity: Again, it’s all about knowing where the puck might be going. The media is fickle, so this is a hard nut to consistently crack. One method is to look for future catalysts (like the halving) and start positioning yourself accordingly LONG before the mainstream media begins talking about it. We always take this into consideration when trying to find new coins. - Limited Use Cases While the potential applications for cryptocurrencies and blockchain technology are vast, the current use cases are still limited compared to what they will be. As a result, the value is largely driven by speculation rather than real-world utility, contributing to their volatility. The opportunity: As the cryptocurrency market matures and gains wider adoption, we are betting that ALL of these factors will diminish, leading to more stability in prices - and at WAY higher prices than they are today. Where will we see the most utility? Stay tuned for our tokenization report for more on that. Want to learn more from the library? [Go here]( and see if ESC is right for you. Rate this email Like Dislike Thanks for rating this content! Looks like something went wrong. Please try to rate again. You have [(1) item]( on hold at our warehouse: Item #: [51987]( Status: On hold Value: Approx. $300 Claim by date: 06/21 at 11:59 PM To see how to claim yours simply [click here]( our Head of Customer Experience will show you what you need to do. You Might be Interested in... [America’s New Money is not green. 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