How to Survive the Final Bitcoin Shakeout of 2024

How to Survive the Final Bitcoin Shakeout of 2024

A few years ago, asset manager Fidelity reportedly conducted a study on investor behavior. And the results shocked everyone…

It found the best-performing accounts belonged to people who had forgotten they had an account or – even crazier – had passed away.

The study proved the best way to build wealth from the markets is to invest in high-quality companies and hold them for the long term.

Traders who thought they could outsmart the market by moving in and out of stocks generally found themselves underperforming the market.

Today, the study is considered urban legend by many. But like all legends, there’s a kernel of truth embedded within.

According to a study by the prestigious Wharton School at the University of Pennsylvania, active fund managers (those who buy and sell handpicked stocks) trail passive funds (those who buy and hold broad-based indexes) consistently over a 10-year period.

Look, whether it’s an urban legend or a study done by a top business school… It’s pretty common knowledge that buying and holding quality assets and just not touching them for the long term is a winning strategy when it comes to investing.

You don’t need a PhD in economics to understand that. Unfortunately, too many crypto investors fail to grasp this simple investing principle.

They buy on FOMO (fear of missing out) and sell on FUD (fear, uncertainty and doubt).

Here’s why I’m telling you this…

Wednesday, December 11, marked the fourth anniversary of The Final Shakeout.

Four years ago on the same day, bitcoin plunged 12% and trended lower after a failed break of its previous all-time high.

If you panic-sold, the decision probably haunts you to this day. But if you held on, you likely made life-changing gains.

Since then, bitcoin is up 470%. By comparison, the S&P 500 is up 66% over the same period.

Here’s why I’m sharing this with you now…

This past week, we saw a similar shakeout. Bitcoin (BTC) hit an all-time new high above $103,000 on December 5 and fell as much as 10% by December 10.

Our longtime readers know this type of volatility is par for the course. I’m confident they’ll ride it out as we’ve educated them to do.

But if you’re new to crypto, I don’t want you to make the same mistake the weak hands made during The Final Shakeout of 2020.

In today’s essay, I’ll show you why we believe $100,000 is just the beginning of what will be one of the greatest bull markets in history.

And if you hang on, I believe you’ll be rewarded just like those individuals who didn’t let volatility shake them out four years ago.

Higher Highs Are Ahead