The Trader Top 9: What Happens When Markets Get Sick?
Welcome to the inaugural edition of the Trader Top 9, a new newsletter from Cove Markets.
The Theme of the Week
Fears of disruption from the Coronavirus are finally catching up to markets - both traditional and crypto - with implications in both numbers and narratives. Without further ado, our countdown.
The Trader Top 9
//THREAD— Cosmonaut (@CosmonautC) February 15, 2020
Let's talk fees.
One of the common phrases on CT is that "fees kill your gains"
Most humans are visual learners and the ones who aren't usually need some sort of proof to back up a statement for them to believe it. Normally no data is presented.
Time to change that pic.twitter.com/hRMHCIp5nf
New show with @SBF_Alameda just dropped!— Luke Martin (@VentureCoinist) February 20, 2020
Whenever I speak with a team doing billions in volume and launching products like TRUMP coin...it's an epic convo.
We also talk $BTC bull, Bitfinex maintenance, and being in HK during Corona outbreak.
Watch here: https://t.co/hrNstNjf4U pic.twitter.com/2lhIl7Wv4n
Warren Buffet has a habit of missing the biggest investment opportunities of a life time.— Jacob Canfield (@JacobCanfield) February 24, 2020
❌ Apple (bought some last year)
He also has significant investments in major banks, the direct competitor of Bitcoin. pic.twitter.com/O41h0VVO0e
Welcome to the Fourth Turning. At this time, we have entered the "crisis stage" as defined by the generational shift currently in progress. Boomers are retiring, handing the reins to Gen-X, and Millennials are entering their wage-earning years. Let's look at some data.— Hans HODL (@hansthered) February 22, 2020
This drop wasn't caused by excessive leverage, the fed, interest rates, or valuations.— Michael Batnick (@michaelbatnick) February 25, 2020
It was a virus.
Good reminder that risk is what you never see coming.
Most sell offs have little to do with news. Bernie’s rise & the virus were both known beforehand & became bigger risks over the weekend. This was worth a percent or two. Outsized sell offs however are almost always due to systematic players interacting (CTAs, delta hedging, etc) https://t.co/irGwVhq3gU— THE LONG VIEW ⚫️ (@HayekAndKeynes) February 26, 2020
Bitcoin is seemingly not reacting to the coronavirus and market shakeup. Gold is ripping, equities are dumping. The bitcoin market never closes - it should have reacted already if it was a flight to safety. That said, it’s still a massive benefit if it remains uncorrelated.— The Wolf Of All Streets (@scottmelker) February 24, 2020
Bitcoin is currently dumping alongside legacy markets.— The Wolf Of All Streets (@scottmelker) February 25, 2020
Did everybody who called bitcoin a safe haven asset flipped already and is now calling it a risk-on asset?— Alex Krüger (@krugermacro) February 25, 2020
Asking for a friend. He's writing a paper on pancakes.
“#Bitcoin trades 2/3s like a #tech stock and 1/3 like digital #gold.” @JanvanEck3 told me this a few years ago. This is an insightful observation that I found true, especially during big market sell-off days when Bitcoin moves more with tech stocks then the gold-safe-haven trade. pic.twitter.com/NAxaFv7m7u— Gabor Gurbacs (@gaborgurbacs) February 24, 2020
“Everybody should have 1% of their assets in Bitcoin specifically.— Yassine Elmandjra (@yassineARK) February 26, 2020
When you see the amt of leverage the financial industry is running, there is a lot of risk to the downside. Now, an average individual citizen of every country in the world has an uncorrelated hedge.”@chamath pic.twitter.com/vlSIJaaJS2