Bitcoin Miami, the biggest crypto event of the year, may be over, but the repercussions are still being felt. In addition, there were several notable developments this week including a legendary investor throwing his support behind bitcoin, a meme coin revolution, and the return of the prodigal son (Elon Musk)... maybe.
9. What would a Trader Top 9 be without some FUD. This week's FUD is brought to you by Eswar Prasad, who claims that bitcoin is too volatile and that its price makes little sense. But, as we all know, volatility is what makes the astronomical gains possible. There are also many reasons why bitcoin is valued where it is and why it's likely to trend higher over time.
8. Bitcoin Miami, the biggest crypto event of the year, took place more than a week ago. While it may have been an exciting event for many, it may also turn out to be a Covid-19 superspreader. This is a great reminder that we've come a long way since the beginning of the pandemic but we aren't completely out of the woods yet.
7. Of course, the impact of the pandemic is being felt in many ways other than superspreader events, such as inflation. The FOMC met this week and although it left rates unchanged, it did acknowledge that rate hikes could come as soon as 2023. Have you ever wondered how inflation might impact your life? The below story perfectly encapsulates why inflation is a big problem for savers.
6. NFTs have captured the imagination of many in crypto. For those of you who collect NFTs, have you ever wondered what the creator of your favorite NFT looks like? Perhaps they look like the person below.
5. Meme coins have risen in popularity but why? Perhaps because everyone loves a good underdog story. But does that make them a good investment? Dogecoin (DOGE), which is now available for trading at Cove Markets, might be the king of meme coins, but Shiba Inu (SHIB) is close behind, especially after Coinbase's announcement that it will list the coin on its exchange.
4. Elon Musk was our friend, then our foe, and now possibly our friend again. As Thomas Lee points out, it's amazing how much influence one person can have on the entire crypto space. It also shows how early we still are and that the crypto market has to evolve and mature. And all of us will get to witness that first hand.
3. The big news last week was that El Salvador passed a law to accept bitcoin as legal tender. Max Raskin wrote a great article for the Wall Street Journal explaining the potential impact of this decision.
2. First there was Michael Saylor, then Elon Musk, then Ray Dalio. How about Paul Tudor Jones? Jones is the founder of the Tudor Investment Corporation, one of the largest hedge funds in the world. In a recent interview on CNBC, PTJ expressed his concerns over government spending and that bitcoin was a great way to play the inflation trade.
1. They say pictures are worth a thousand words. So, the below images can speak for themselves. See you next week!
Trading and Investing Thoughts
1. Do you prefer idea driven (big picture) trades or do you follow the charts? Altcoin Psycho shares his thoughts.
2. Crypto can generate impressive returns. But those returns are not possible without volatility, which can lead to occasional losing streaks. Peter Brandt shares what works for him during a rough patch. If you have other ideas you'd like to share, stop by our Telegram group and let us know!