The Wolf Den #171 - Great Investors Are Adamant
Bitcoin Thoughts And Analysis
DAILY CHART
Bitcoin is retracing slightly - no surprise here. As you can see, price has arrived at the resistance of the bull flag shown above on the daily chart. A clean break of this line with a strong close above would signal a likely move to around $63,000. That means this is strong resistance! My expectation is to see price consolidate around this area before making a strong push up. That could be today or in a week, but this flag should eventually break to the upside.
4-HOUR CHART
It may really be this simple. Price is currently bouncing out of 4 hour demand. For a scalper, this would have been a long entry. For most people, we are waiting for the larger pattern on the daily to play out.
HOURLY CHART
Zooming in, we can see that bullish market structure is still clearly intact, with a series of higher lows and higher highs. Unless price breaks below the black line, we still have a higher low in the works. Depending on how this hourly candle closes, it could also be a nice hammer or reversal signal.
Chart Requests
Here is yesterday's chart request stream - enjoy!
$ALGO $BAL $BAND $BAO $DEXE $DOT $EASY $EGLD $HARD $IOTA $LTC $MAHA $MTL $OCEAN $ORN $PLTR $QS $REN $SFIX $SHOP $SIRI $SUSHI $UTK $VALUE $XLM $XTZ
Grayscale’s Take On Defining Ethereum
Defining Bitcoin has become simple; over time a consensus has formed around the idea that Bitcoin is a store of value or digital gold and, in that role, it provides idiosyncratic risk and a hedge against inflation. Ethereum has not been as easy to categorize because its properties are wider spread. It is much younger than Bitcoin. This hasn’t stopped macro thinkers like Grayscale from providing their own framework on the role of Ethereum and its own differentiated investment thesis.
In the report LINKED HERE, Grayscale takes 3 approaches to defining Ethereum - “Ether as money, Ether as a consumable commodity, and Ether as an interest-bearing asset.” Ethereum as money hinges on the design of Ether being the fuel behind the network. It is the primary capital source for applications built on the network and used for borrowing and lending.
Ether as a consumable commodity refers to the rumored system upgrade EIP-1559 that proposes burning Ether used to pay for transactions. This would also ensure that Ether is the native economic unit on Ethereum rather than other coins being used to pay fees.
The final segment explained how Ethereum’s transition to 2.0 is implementing staking. “This (staking) asset structure is unlike anything else in the physical world. Commodities are consumed. Equities provide rights to cash flows. Under Ethereum 2.0, Ether can be consumed as a commodity or staked as a claim on cash flows, similar to equity.”
It will take time for Ethereum to develop a clearer role, but reports like these are helping consolidate the ideas in a presentable way for investors to digest and act upon. By the time Ethereum has a clearly defined role, it will probably be worth a whole lot more.
Grayscale Trust Is Adding Ethereum Fast
The Grayscale Ethereum Trust has so much demand that Grayscale has had to shut it down multiple times to keep up with growing interest. Just as Ethereum began to tease new levels, Grayscale reopened the trust with a bang, publicly announcing their purchase of 25,000 new Ethereum totaling close to $38 million USD. It’s not a surprise that the trust conveniently opened right around all-time highs and a few days prior to the highly anticipated CME launch. Ethereum is about to receive widespread exposure in the coming days.
Michael Saylor Is Pitching Bitcoin To Over 1,000 Companies
Michael Saylor bought over 1 billion dollars in Bitcoin and wants the world to understand how he did it. He is currently sharing his playbook with eager and curious company executives. Over 1,400 companies signed up for the conference and over 1,000 tuned in on day one. Today is the second day, with Friday concluding the summit. All of his videos are free and still available, and Michael Saylor has already announced that he will continue to hold workshops around the subject in the coming months.
Visa Is Working With Banks To Implement Bitcoin
An official announcement from Visa:“We set out to make Visa the bridge between digital currencies and our global network of 70 million merchants and today we are the leading network for crypto wallets with 35 crypto platforms choosing to issue with Visa,” said Jack Forestell, chief product officer, Visa. “With this pilot program, we want to extend the value of Visa to our neobank and financial institution clients by providing an easy bridge to crypto assets.” In short, Visa is looking to build applications to enable banks to offer Bitcoin services. Most exciting is their next phase where they plan to “be a bridge between the thousands of financial institutions … and help them tap into the growing world of crypto assets and blockchain networks.”
Will Ripple Beat The SEC?
In a pleasant twist, former SEC official Joseph Hall has stated that he believes that the SEC will lose its case against Ripple. This definitely bears watching.
The Wolf Of All Streets Podcast Ft. Andrew Henderson
At a young age, Andrew Henderson was advised to “go where you are treated best.” With a deep-seated love of travel and an entrepreneurial spirit, Andrew became an expert on international investing, taxes, property, citizenship, and regulations. He became a "nomad capitalist," building a business around teaching high-net-worth individuals how to manage their and protect their wealth in a cost-efficient and enjoyable way.
Andrew and I further discuss going where you are treated best, coining the term “nomad capitalist,” second citizenships, wealth taxes, overseas audits, tax havens, offshore hiring, mega-wealthy crypto investors, finding a culture that suits you, the most underrated places to live, citizenship by investing, building an escape hatch, political homelessness and more.
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor.