Trader Top 9: Elon Musk Tanks Dogecoin and Bitcoin

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It's been a while since crypto experienced a week as crazy as this one. Although the crypto market, particularly Ethereum, started off the week strong, Elon Musk managed to put an end to that.  In addition to Elon's contribution, this week witnessed renewed inflation concerns as well as an acknowledgement from a legendary investor that bitcoin will be hard to unseat as the top store-of-value crypto asset.

9. Let's start off with another case of FUD, silly FUD.  Andrew Bailey, the Governor of the Bank of England, said that crypto investors should be prepared to lose all their money.  Hmmm, well he said the same thing in March 2020.  How did that prediction work out for Mr. Bailey?

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8. Andrew Bailey wasn't the only one who wanted to "protect" crypto investors.  The SEC called bitcoin "a highly speculative investment" and warned investors of the asset's volatility and lack of regulation.  As most of us know, however, the volatility in crypto is a major reason why astronomical gains can be achieved.  Can't get the gains without a little pain along the way.  

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7. One of the big narratives in crypto has been all the FIAT printing occurring throughout the world, especially in the U.S.  Although economists, such as Jerome Powell, have tried to downplay the risk of inflation, the evidence is starting to mount.  The only question that remains is whether this period of rising costs is transitory or permanent.

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6. One of the most anticipated events of the past week was Elon Musk's appearance on Saturday Night Live.  The big question was whether he would find a way to mention Dogecoin.  Well, he didn't disappoint.  During one of his skits, he admitted that Dogecoin was a hustle.  Elon laughed but DOGE investors weren't, as the coin price corrected hard after that.  As a side note, DOGE will soon be available for trading at Cove Markets.  Please stay tuned for further details.

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5. Dogecoin wasn't the only coin that suffered because of Elon Musk.  Elon cited environmental reasons as the primary driver behind Tesla's decision to suspend vehicle purchases using bitcoin.  Bitcoin fell sharply after that announcement!

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4. Bitcoin's impact on the environment has been debated a lot over the past few months.  Strangely enough, Elon Musk previously acknowledged that bitcoin incentivizes renewable energy.  Oops!

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3. Although this week saw a lot of FUD, there were also some fun and positive developments.  Tom Brady, QB of the Tampa Bay Buccaneers, posted a new picture on Twitter with laser eyes.  Is Tom a bitcoin maxi? :)

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2. Institutions have been a driving force for crypto's surge during the current market cycle.  Rick Rieder, Blackrock's Chief Investment Officer of Global Fixed Income, and Head of its Global Allocation Investment Team, stated that bitcoin is durable and will be part of the investment arena for years to come.  

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1. One of the most exciting developments of the week came during CNBC's interview with legendary investor, Stanley Druckenmiller.  Druckenmiller acknowledged that the USD could lose reserve status within 15 years and that bitcoin would be hard to unseat as the top store-of-value digital asset.  You've heard it before and you'll hear it again, bitcoin is king.

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🔥 Cove Markets now has a Telegram group and a Reddit community page.  Please stop by and let us know what you thought about this week's Trader Top 9! 🔥

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