Literally last week, the world stood in awe at the continuing bull run of Bitcoin. People were talking about its potential to break the $30,000 mark and soar higher than ever before.
Well… for those of you who hold Bitcoin and were paying attention to its price over the weekend, your wishes for 2021 came true. Not in the middle of the year, but at the very start of the year.
On Saturday morning, even the cryptocurrency skeptics at ZeroHedge saw their jaws drop to the floor as Bitcoin kept going up, and up, and up:
“Well that escalated quickly. Less than an hour after first breaking above $30,000, Bitcoin has spiked beyond $31k, then $32k… and now $33k… Bitcoin prices accelerated overnight, surging through $30,000 for the first time and nearing $31,000 as we write… Now over $10,000 beyond 2017’s record high…”
What shocked them even more was the rate at which Bitcoin was dwarfing the value of gold, which has been THE “hedging asset” against the markets for the past century:
“As Bitcoin nears $31,000, the digital currency trades at over 16 ounces of gold, surpassing the 2017 highs (15.6).
As we detailed previously, Bitcoin’s biggest proponents believe the digital currency is eating away at gold’s market cap as investors opt for the efficiency, portability and proven scarcity of the asset. Astonishingly, that view is also shared by JPMorgan Chase analysts, who believe Bitcoin’s digital gold narrative is drawing capital away from precious metals.”
At this point, Bitcoin reaching the $40,000 mark is not a matter of IF, but WHEN. If this momentum keeps up, it wouldn’t even be unreasonable to say we’ll get there by the end of January.
And why wouldn’t it? Gold only went up by 25% last year, and the S&P 500 trailed far behind at 16%. In any other circumstance, those two numbers would be extraordinary. But when pitted against Bitcoin’s +305% rise in 2020, it almost seems like you chickened out and chose to play small with your capital if you didn’t put SOMETHING into Bitcoin.
(NOTE: As of this writing, at 7:40am UTC today, Bitcoin appears to be flatlining at $32,302.10.)
Not only did Bitcoin shoot straight up, but so did Ethereum as of last night. Once again, the writers at ZeroHedge couldn’t help but stare in amazement:
“Less than 8 hours after breaking above $800, and just an hour after surging beyond $900, Ethereum has broken back above the $1000 mark for the first time since Feb 2018 ($1001 was the day’s high so far).
After breaking $600 for the first time since May 2018 in November 2020, it broke $700 for the first time since that same month in 2018 on Dec. 27, 2020, and has now notched $800, $900, & $1,000 in the same morning.”
The ONLY thing stopping Bitcoin from having another massive crash like it did in 2017 is the growing interest of the big banks, mega corporations and institutional investors. If they’re putting a lot of money into Bitcoin, you can bet they’d hate to see it fall as much as the rest of us.
Nothing more from me to say, other than 2021 will turn out to be a very wacky year.
What do YOU think about Bitcoin nearing the $34,000 mark over the weekend? Will these gains continue on, or should we prepare for another 2017-esque crash? Reply to this newsletter and share your predictions with us!
+398% and 343% Gains… WITHOUT Being in the NASDAQ or S&P 500!
I just came across this fascinating article from MarketWatch which proves that you don’t have to follow the status quo in order to pick the right stocks and become a wealthy investor.
Writer Philip van Doorn did a little experiment where he looked at the 15 best-performing stocks of 2020 that WERE NOT a part of the S&P 500 or the NASDAQ. Companies that haven’t been minted in the stock exchanges, yet are just as legitimate as the big names and demonstrate just as much potential for explosive growth.
I won’t list all fifteen of them here, but I will list the top 5 to show you just how much they soared:
- Cloudfare (Information Technology Services): +398%
- CrowdStrike (Packaged Software): +343%
- Zcaler (Software): 341%
- Pinterest (Internet Software/Services): 281%
- Twilio (Software): 269%
You notice that one word which keeps on repeating itself over and over again? SOFTWARE!
Even if you ignored the FAANG stocks and just focused on other tech companies which directly benefitted from the COVID-19 pandemic and the work-at-home movement, you would have stood to make some once-in-a-generation gains.
What a time to be alive… hopefully we’ll have more of this in 2021 without the devastating impact of joblessness and the destruction of small businesses nationwide.
Three HUGE Chinese Companies Delisted from the New York Stock Exchange
Even though the future of President Trump appears to be uncertain (and 100% over according to some outlets), the effects of his policies are still well and alive.
According to the Financial Times, this impact is especially evident in the stock market:
“The New York Stock Exchange has begun delisting China’s three largest state-run telecom groups to comply with a Trump administration executive order barring US investors from holding stakes in companies suspected of having ties to the Chinese military.
The move by the US’s largest exchange follows similar restrictions from index providers and will restrict the Chinese companies’ access to capital from American investors.
China Mobile, China Telecom and China Unicom all maintain listings in Hong Kong, which will limit the damage of being removed from the NYSE… The NYSE said the companies had the right to review the decision, with the delistings set to begin as early as January 7.”
For more details about this executive order… supposedly, if the Pentagon alleges that a Chinese business has ties to the military in China, new transactions in their shares are prohibited. This order is set to roll out on January 11th and beyond, which I suspect is why the delisting has started early.
Oh well – at least they’ll have a brand new home in the Hong Kong markets!
Where Are the Bailouts for American Cities?
If there was anyone that deserved a multi-billion dollar bailout, it would be the cities of the United States of America, not the mega-corporations. Yet it doesn’t seem as if any financial aid was set aside for them in the second stimulus bill, as reported by Reuters:
“In Washington’s months-long political slugfest over who should get aid to counter the financial damage from the COVID-19 pandemic, there was at least one clear loser: local government.
In the midst of cutbacks in workforce and emergency services and growing poverty, US cities, especially the smaller ones, are hoping the next round of stimulus includes them and that President-elect Joe Biden advocates for them when he takes office on Jan. 20.”
Some of the consequences include the following:
- The mayor of Dayton, Ohio will not be able to hire new firefighters and police officers this year
- The mayor of Arlington, Texas warned that additional job cuts could be on the way for his city of 400,000 people without help from the federal government
Not a good start to the year of 2021. Unless every single disenfranchised government gets some form of assistance, it will truly be a battle of the coastal cities against the rest of America.