If I could point to one example that today’s crypto market reminds me of… it would be October 1987, when Microsoft was trading for a split-adjusted 36 cents per share.
Some people were arguing it was worth 15 cents… Others believed it was worth $1.20. That year, shares hit 17 cents (during the ’87 crash).
At the time, I’m sure those bears felt like heroes. But by August 1991, Microsoft was trading over $1.20. And those traders who held and took their profit at that time probably felt like even bigger heroes.
In the end, both groups of traders were right in the short term… but they were horribly wrong over the long term. That’s because today, Microsoft shares are changing hands at $292.
If you’d invested $10,000 in Microsoft right before the ’87 crash – even with the worst timing in the world – it would be worth $8.1 million today.
And if you’d bought the dip and bought Microsoft at the $0.17 low… Your $10,000 would now be worth over $17 million.
That’s the power of buying the dip in a world-class asset. And it brings me to my point today…
We’ve seen bitcoin drop as much as 53% since hitting its all-time high of $64,863 in April 2021.
And while the Debbie Downers in the mainstream press say the sky is falling… Wall Street firms were rolling out the crypto red carpet for their clients.
This tells me there’s immense FOMO (fear of missing out) among institutional investors. And as I’ll show you, it’s starting to spread to other sectors of the economy.
The good news is you can still get a jump on these big players.
That’s because – despite the rapid growth we’re seeing in crypto adoption – we’re still in the early stages of this multitrillion-dollar trend.
Institutional FOMO Is Heating Up
The reason Wall Street is jumping on the crypto bandwagon is simple: Greed.
These companies didn’t have some epiphany about crypto. They just figured out a way to make money from it: by charging fees.
These firms are now turning to crypto financial products as a new revenue source.
We’re seeing that unfold now. In just the last 90 days:
- PNC Bank, the sixth-largest bank in the U.S., plans to offer crypto investment services to clients. The bank is partnering with Coinbase and Elon Musk to complete the project.
- Venmo – the mobile payments platform owned by PayPal – launched a new crypto cashback credit card.
- Institutional bitcoin shop NYDIG will enable 650 U.S. community banks and credit unions to make bitcoin purchases available to their customers.
- Visa’s crypto-related cards saw $1 billion in spending activity in the first half of 2021.
- Mastercard added seven startups to its engagement program to support fast-growing digital assets, blockchain, and cryptocurrency firms. The companies will work with Mastercard to make it safer and easier to buy, spend, and hold crypto.
- JPMorgan will soon offer a passively managed bitcoin fund in-house to private clients.
As you can see with your own eyes, we’re on the cusp of widespread adoption of this asset class.
The firms above oversee trillions of dollars’ worth of assets. And so far, just a tiny fraction of the world’s assets have made their way to bitcoin…
And that brings me to the second point: It’s not too late to get in.
We’re Still Early in the Game
Despite all this FOMO, we’re still only in the early phases of crypto adoption.
According to estimates by Finder, only 5% of the world owns bitcoin. Now, compare that to the nearly 55% of people who own stocks.
We haven’t seen the flood gates open to crypto yet. But we will. As these institutions begin to get comfortable with bitcoin, the billions coming into crypto right now will look like a trickle compared to the trillions of institutional capital that will eventually flood into this space.
That’s why I predict we’ll eventually see bitcoin hit $500,000.
Friends, just like internet stocks were the “gateway” for institutions into the entire tech sector… Bitcoin is the gateway into the greater crypto ecosystem. Once bitcoin takes off, investors will flow into the smaller altcoins and send them soaring even higher.
The gargantuan upside nature of these assets still gives you the ability to hit a life-changing home run. That’s what these assets can do.
They won’t be able to do it forever… But they sure can do it now.
When the reality of all this latent demand for bitcoin kicks in… The move higher will be parabolic. It will be utterly insane. And it will leave you breathless.
Let the Game Come to You!
Editor, Palm Beach Daily