Welcome back to another jam-packed Trader Top 9! While last week focused on some members of the old guard trying to slow down the momentum of bitcoin, this week will make it quite clear that nothing can slow it down at this point. Bitcoin has had a strong week as it traded above $57,000 and has reclaimed it's trillion dollar+ market capitalization.
9. First, let's remember that one year ago to the day was the declaration of the pandemic. Society has overcome a lot of hurdles over the last 12 months and while the future remains uncertain, here's hoping we can return to semi-normalcy over the next 12 months.
8. The early days of the pandemic were difficult for a lot of financial assets, including bitcoin. One company eternally grateful for the strong bitcoin rebound is Coinbase, as the company's direct listing is one of the most highly anticipated events of the year. While some feel that the company is deserving of a $100 billion valuation, I expressed my doubts in an article for CoinDesk.
7. In addition to perhaps being the biggest crypto event of the year, Coinbase's direct listing will also set the stage for a few of its closest competitors such as BlockFi. The company already had plans to go public later this year and this Series D capital raise gives a bit of clarity into how the popular trading platform might eventually be valued.
6. BlockFi and Coinbase aren't the only ones cashing in on the red hot crypto market as NFTs are continuing to grow in demand and popularity. And now, a new record has been set as a Beeple NFT just sold for an astonishing $69 million.
5. Institutions have been racing to acquire bitcoin due to its scarcity, which they believe could serve as a hedge against inflation. Another popular digital asset, ethereum, may soon enjoy similar attention due to the passing of EIP1559, which will reduce supply. Bloomberg reporter, Matt Leising, goes into more depth in his recent article.
4. Bitcoin and gold are often mentioned as two assets that serve as a hedge against inflation. While that may be true, Alex Kruger reminds us that when it comes to return on investment, gold doesn't even come close to matching bitcoin's dominance.
3. Given the return that Alex cited above, should it come as a surprise that JP Morgan is launching a cryptocurrency exposure basket?
2. JP Morgan isn't the only bank increasing its exposure to crypto. Goldman Sachs, which recently announced that it was restarting its cryptocurrency trading desk, acknowledged that it's currently trying to find ways to satisfy the growing demand to invest in and own bitcoin. Big WOW!
1. Some may look at a bitcoin price of $50,000+ and think its too expensive to own. Was TSLA too expensive to own at $100? What about AMZN at $1000? Pierre makes a great point that investment decisions should be based on what the future holds, not past prices that can no longer be had.