The crypto bubble will burst in July.
I am an early Bitcoin investor. I have full trust in the disruption of the cryptocurrency market which will tumble down the financial sector as we see it today. Even if we are all sure about this, the market will fall in July.
The question now is, how to make money out of this future crash?
WHY WILL THE MARKET CRASH IN JULY
Uncertainty and miner's own private interests.
On the 1st of August, we will see the BIP 148 with a majority of support. It's already with more than 80% support from miners. The chances of a chain split on BTC are extremely low. And even if this happens, game theory indicates that the smallest chain will probably perish (there's not the same stagnation or conservatism for a "Bitcoin Classic" as there was for Ethereum Classic. But uncertainty is anyhow present, as there's multiple scenarios like hacking, useless generated blocks, small chances of a chain split, etc.
- Uncertainty: If you are an investor which is not a miner and lacks the power and influence within the community, you will not risk to a third party's decision making your portfolio's value.
- Organized Whales and Miners make money from dips and pumps: They will want to move the market in their advantage when there's opportunities to do so. If you create the dip, you control the dip.
- Controlled Chaos: The big players in the market want to control where the market is heading. The higher the degree of uncertainty, the higher the need of the whales to control market movements.
- The alt-coin market is highly inflated: We have seen huge ICO fails such as Bancor, Dao, etc. But we are also seeing other many coins with a huge potential, but completely overpriced as per today's fundamentals, such as Siacoin or Golem. Uncertainty will hit them stronger. Some of these coins are already falling highly. there is a clear movement back from Alt to BTC.
- BTC is getting capital back from alt-coins due to the higher volatility. That's why it has fallen so little this weeks compared to some analysts predictions. Dominance is back at 45%. But btc will suffer on the upcoming weeks.
- Alt-coins have huge Betas on BTC: Falls on BTC on July will drop even higher the crypto market.
WHAT TO DO:
Clearly the best way is to invest in inversely correlated assets to BTC, depending on how much you belive segwit2x and BIP 148 will affect the BTC price.
- If you expect major drops: USD Tether: It will give you liquidity for when the market hits minimums to be able to buy again.
- If you expect moderate drops: LTC: If you think the drop will not be so high, you should go to LTC. Strong community with strong support and always beating BTC on their drops.
- If you expect testing 2100 level: ETC: Similar to LTC. It's not inversely correlated, but it will remain strong due to its community and the new updates on Emerald Wallet.
