Bitcoin Drops 10%… Is This How the Mania Ends?

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If you were expecting me to write today about how Bitcoin cracked $25,000, trust me, you’re not alone. 

Because I was expecting to do the very same thing. 

But I’m not going to do that today because instead of continuing what must be the strongest, most sudden price rally for any commodity ever, the run-up seems to have done the unthinkable…

It’s lost steam. 

As I write this, Bitcoin is selling at around the $16,500 mark, putting its market cap at $275 billion — still by far the biggest and most actively traded cryptocurrency out there. 

That said, $275 billion is more than $40 billion short of where Bitcoin was trading at its peak just about a week ago. 

So what happened? Is it all over? Has the mania finally turned to panic?

Don’t count on it.

No, the Crypto-Haters Weren’t Right… This Was Expected

You see, for the crypto market to have officially turned a corner, the entire sector needs to go into a downturn. 

As of yesterday, the total market capitalization for the crypto space stood at $642 billion, an all-time record despite the fact that Bitcoin values were in free-fall when that milestone was hit. 

Which means even as Bitcoin mania was waning (or at least starting to show signs of age), something was rising to fill the vacuum, and then some. 

This week, that something was Bitcoin Cash. 

Abbreviated as BCH, Bitcoin Cash is actually an offshoot of Bitcoin itself (hence the name). 

The coin was designed to add liquidity to Bitcoin to help solve its built-in scalability issues. Bitcoin holders were rewarded for their loyalty by receiving one unit of Bitcoin Cash per bitcoin held on August 1, 2017. 

The new coin quickly shot up in value off spillover demand from the parent cryptocurrency, but then stagnated as Bitcoin mania regained momentum to rise past the $10,000 mark.

This week, however, something happened that forever changed BCH’s status.

It’s Not What You Know or Even Who You Know… It’s Where Your Products Are Traded

Coinbase, the most active crypto exchange in the world, announced yesterday that BCH would become its latest listing. 

So, what does it mean when you give more than 14 million established crypto buyers sudden access to a new digital currency?

Well, the chart below illustrates that effect.

BCHchart

Bitcoin Cash more than doubled in value the day after the announcement, rising to a market capitalization of over $70 billion — just narrowly behind Ethereum, the world’s second-biggest cryptocurrency.

By the time this article publishes, it’s likely that BCH will be in the #2 spot.

So while Bitcoin stagnates, even declines a bit, BCH carries the sector to new heights.

And most of this popularity can be credited directly to Coinbase itself.

Now, I know you’re sick and tired of hearing how rich Bitcoin owners are getting. 

You didn’t need another kick in the guts with this Bitcoin Cash thing, and believe me, that wasn’t the goal here. 

Diversification is inevitable in any industry once mass adoption drives it past the initial mania stages. 

Options appear, market shares decrease, but overall the sector expands… and that’s exactly what’s happening here today.

The Biggest Gains May Yet Be in Our Future

I’m writing you today because there are whispers of the next cryptocurrency to get listed on Coinbase. 

It’s not confirmed yet by any means, but the rumors are there, and there is some solid evidence. 

The best part is this: This crypto isn’t a multibillion-dollar market cap currency like every other coin listed on Coinbase. 

It’s 1,000 times smaller than Bitcoin… and almost 200 times smaller than Ethereum.

In fact, it’s less than 1/30th the size of the smallest coin currently listed on the Coinbase exchange: Litecoin. 

It’s a microcap cryptocurrency with the growth potential Bitcoin had when it was trading in the tens of dollars. 

Which means it’s your second and probably last chance for those kinds of gains — at least in this market. 

I urge you to access my free informational video on this groundbreaking new digital currency right now, before it’s too late.

Fortune favors the bold,

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Alex Koyfman

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Coming to us from an already impressive career as an independent trader and private investor, Alex’s specialty is in the often misunderstood but highly profitable development-stage microcap sector. Focusing on young, aggressive, innovative biotech and technology firms from the U.S. and Canada, Alex has built a track record most Wall Street hedge funders would envy. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.

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