Updated: Jun 30
This is not investing advice. Seek a financial professional before making important financial decisions. Nothing we say or write is a recommendation to buy/sell/or trade any security.
By Bernard Baruch
Some say markets are efficient.
That you can't predict price movements because there are simply too many smart people trying to do it.
The future is uncertain! Its all random!
Well...check the timestamp on this article and watch Bitcoin and Ethereum move higher from here.
There are ten reasons why we moved into Bitcoin and Ethereum last Thursday. These reasons are causing a cascade of adoption in these crypto assets that is driving up volumes and prices along with them.
Here they are...
Why Bitcoin and Ethereum are Rising
1) Crypto bear market ended on July 27, 2020.
2) Adoption is accelerated last year because payment platforms like Square and Paypal added Bitcoin making it easy to buy and use.
3) Crypto cycles tend to last around 3 years...and now investors are aware of it. So when they see that the bear market is over they don't wait for cheaper prices. (Note: Bitcoin was prices at $14,100 at the time of this tweet).
4) Even old conservative white guys with billions of dollars are buying into Bitcoin. Stanley Druckenmiller is one of our favorite old conservative white guy billionaires. Another one is...
5) Ray Dalio runs the largest hedge fund in the world called Bridgewater. We wrote a White Paper on why he is considering adding Bitcoin to his fund. That's ... kind of a big deal.
6) Elon Musk is not that old .. but he is the richest person in the world and despite running the several of the world's coolest and most innovative companies like Tesla, SpaceX, Neuralink, Boring Company...he has "Bitcoin" as his Twitter handle now and some of his 45 Million followers have noticed.
7) Bitcoin already had the 25% correction. We warned our followers to take some profits when Bitcoin fell from the $40,000 high on January 7th. Also available in Periscope. Then we ... bought the dip at $29,100. All the weak hands are gone chasing the price now.
8) Investors are aware that Stocks are expensive and bonds are stupid given that we are heading into an inflationary environment. Crypto is the new TINA. That's why we sold a lot of stock and bought a ton of #Bitcoin and #Ethereum before the market tanked last Thursday.
9) We also track a lot of high frequency indicators to see which assets are about to explode. Its complicated...but if you follow us on Twitter you can see for yourself.
10) But the biggest reason of all is that Crypto is useful. Try buying something with gold. You can't do it! But hundreds of businesses like Microsoft accept Bitcoin. And Ethereum has hundreds of decentralized applications that hundreds of thousands are using every day. We wrote about it yesterday.
So yes ... market timing is hard and most people that try fail ... but every now and then the stars align on an investment that makes for a positive skew opportunity.