The Trader Top 9: Satoshi Era Coins and the Davey Day Trader Effect
Cove
05/21/2020 09:32

Welcome back to the Trader Top 9. What a seriously strange week. We had one of the world’s most famous authors wade into the bitcoin space; Satoshi-era BTC move for the first time since 2017; and a whole lot of discussion of the force of retail in the good ol’ fashioned stock market.

9. Let’s start with something that started fun and got ridiculous fast. On Friday, Harry Potter author J.K. Rowling made the mistake of asking the bitcoin community to explain bitcoin to her. It went….poorly.

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8. Things did get more interesting in bitcoin over the week, however. On Wednesday, approximately 50 Satoshi era coins - mined in February 2009 - moved. It was the first time any 2009 bitcoin had moved since 2017.

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7. While the understandable first instinct was to ask “are these Satoshi coins?” the blockchain archaeologists quickly pointed out this wasn’t likely.

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And by the way, if that chart makes no sense to you, here’s a helpful thread from Volt Capital’s Soona Ahmaz

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6. Of course, as exciting as coins from that age is, what really matters is modern investors acting now. Influential firm A16Z expects we’re headed towards a new bull cycle.

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5. CME open interest certainly suggests a rising level of interest

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4. In traditional markets, it seems like much of the current bullishness is coming from retail traders 

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3. Some are calling this the “Davey Day Trader Effect” after Barstool Sports’ Dave Portnoy, who has been building a massive audience day trading since the pandemic began.

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2. Outside of the day traders and the r/WallStreetBets types, there remains concern in the market at the impact of recent extreme economic policy.

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1. Yet for traders, that ever present question remains: do you really want to fight the Fed?

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About CoveTrader

CoveTrader by Cove Markets is a platform for active traders of bitcoin and other cryptocurrencies. The crypto market is highly fragmented with dozens of exchanges and limited availability of trading tools. CoveTrader ties the market together in one powerful and transparent trading and analytics platform.

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