Why tracking money is a winning crypto investment strategy
Based on the current price action and overwhelmingly positive investor sentiment, it seems almost inevitable that the current Bitcoin rally will see prices climb to previous highs. It’s not too late to support Bitcoin’s latest bull run, but if history has anything to say about it, a predictable flow of money from fiat to small-cap altcoins is likely to be catalyzed by this Bitcoin rally and present smart investors with a series of opportunities to achieve significant returns.
Historical analysis shows that a Bitcoin rally is followed by a logical flow of money, primarily driven by a set of behavioral triggers within the crypto investing community.
The Bitcoin hype as a catalyst
Why does a Bitcoin rally seem to trigger a cascading series of opportunities to invest in cryptoassets in descending order of market cap size? The answer is mainly due to the fact that a Bitcoin rally is a precursor to a general resurgence in the popularity of cryptoassets as an investment. When the price of Bitcoin grows steadily, diversification into crypto again becomes something even the most resilient investor begins to consider. At the same time, seasoned crypto investors with new capital earned through savvy small-cap crypto trades certainly won’t allow themselves to miss out on the gains on a Bitcoin rally.
The result is an unusually large influx of fiat money into Bitcoin. With a market cap of over $ 1,000 billion, however, the days when the price of Bitcoin rose 40% overnight are well and truly over. It takes a large number of well-funded and enthusiastic investors to change the price of Bitcoin in 2021.
For investors savvy enough to participate in the Bitcoin rally before it starts to run out of steam, gains will have already been made. The result is an invigorated group of happy investors, many of whom will see returns on their crypto investments for the first time. Emboldened by the newfound confidence in crypto’s legitimacy as an investment, these investors are starting to wonder what’s next? Based on the historical silver flow that we are looking at here, it will be the next largest crypto assets by market cap that will start to see positive price action.
Finalists get their moment in the spotlight
As the rush of a Bitcoin rally begins to ease, it makes sense that investors are now looking for the next best opportunity to grow their portfolios. History shows that large-cap “alt-coins” are the next stream of money. Take Ethereum as an example of a cryptoasset of this class. The table above compares the prices of Bitcoin and Etherum during Bitcoin’s bull run in 2017. The spectacular flow of money from Bitcoin to the next crypto asset by market cap could not be clearer. In this case, we have seen Etheruem steal the flame of Bitcoin to the point where it has gone from almost no price movement to outperforming Bitcoin by over 76% in just two months. This is not the first or the last time that we are likely to see this happen.
Here we see the same data shown in the table above as a graph. We can clearly see Ethereum attracting the lion’s share of investments once the Bitcoin rally starts to slow.
It’s time for the upstarts to shine
All good things come to an end, and a rise in prices among large-cap crypto-assets is no exception. From this point on, making smart investment decisions becomes considerably more difficult. The options available among mid and small cap crypto assets are vast and increasing day by day, and every investor, influencer, and alleged crypto expert will have their own opinion on which holds the key to unimaginable wealth.
Nonetheless, if market trends follow historical patterns, money will go to cryptoassets in this class, and there is no way around the fact that an investor’s own research and intuition is the key. only way the benefits of the previous stages of the cycle can hope to be matched… at least it used to be.
Revix: The Death of Guessing
Revix, a Cape Town-based crypto investment platform, has made it their mission to take the guesswork out of making smart crypto investment decisions, no matter what stage in the price cycle. you choose to invest. Want to participate in the current Bitcoin rally? Revix performs a no purchase costs promotion on Bitcoin between October 15 and 21.
When the time comes, you can also buy Ethereum simply and securely and get the best market price possible through Revix’s proprietary service, which guarantees the best price from several third-party exchanges.
Most importantly, when the time comes to create a portfolio based on your own research, don’t. Instead, just go with one of Revix’s crypto sets. Most relevant in this case is the Smart Contracts bundle, an incredibly easy way to add five of the top performing crypto-assets that are defining the future of finance and IT to your portfolio. Revix balances and reviews its offerings monthly so that you are always invested in the best performing assets on the market. It’s a simpler, smarter way to make sure you don’t run out of returns during the last stage of the crypto price cycle.
Revix offers everyone the opportunity to be part of this Bitcoin rally with their zero purchase fee offer on Bitcoin purchases when using ZAR and GBP for a week. (October 15 – 21, 2021)
Let’s do profit of this cycle together!
Revix brings simplicity, confidence and excellent customer service when investing in cryptocurrencies. Its easy to use online platform allows anyone to securely own the world’s best cryptocurrencies with just a few clicks. Revix Guides new clients through the sign-up process to their first deposit and first investment. Once configured, most customers manage their own wallets but can access support from the Revix team at all times.
Remember that cryptocurrencies are high risk investments. You should not invest more than what you can afford to lose, and before investing, please consider your level of experience, your investment goals and seek independent financial advice if necessary.
This article is intended for informational purposes only. Opinions expressed are opinions and not facts and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell a cryptocurrency.
To learn more, visit www.revix.com