The Wolf Den #353 - The ETF Is Here!
Bitcoin Thoughts And Analysis
There is almost nothing to look at on the crypto charts! That's not a bad thing, it's just a simple statement of fact as price chops sideways on Bitcoin preparing for the next big move, and altcoins continue to slowly bleed out.
As I mentioned yesterday, we have either confirmed or potential bearish divergence on every time frame from the daily down to the 4 hour, but with likely and or confirmed hidden bullish divergences in between. You can see it here on the 4-hour.
To me, this is less a sign of bearishness and more a sign of indecision and consolidation. Each drop is likely to cause a hidden bullish divergence, and at the moment this has given RSI a chance to retest on most time frames. There's still a LOT of room to run to the upside if this decides to push.
Bottom line: every time frame looks bullish, with price consolidating above key support, having broken through major resistance. There's nothing to look at on the charts, just the all time high above.
Legacy Markets
TSLA (TESLA)
Tesla appears to be going parabolic once again. Our newsletter entry was on the breakout from the blue descending line, which was not clean and was looking weak. But the idea was to accumulate between $635 and $700. That has obviously paid off in a big way.
As you can see, price is parabolic and looks likely to hit the all time high in the near future. If that happens, you know what we look for next, right?
Price discovery.
The real trade here at this point is a break of $900 and retest as support. Then the sky is the limit.
Stay Consistent With Your Research
Have you ever taken a day or week off from daily consumption of the markets only to return feeling like the entire world has left you behind?
This is completely normal and a common phenomenon amongst investors who habitually follow the news. With any market, and crypto in particular, finding a rhythm is necessary in order to continue making good financial decisions. There's nothing wrong with taking a break. In fact, you should do this often to avoid burnout. But it is important to make sure that you still have a general understanding of what is happening if you are actively trading the market.
FOMO is most likely to kick in when you feel left out or behind, which can lead you to make impulsive and financially poor decisions. The markets can only change so much in a day, but one rash decision can ruin your entire year.
Stay on top of this market, and you should never feel compelled to make an impulsive decision.
New York Is Cracking Down On Crypto Lend Products
New York has long been the strictest state in the country when it comes to crypto regulation. Yesterday, the NY Attorney General office publicly demanded the shutdown of two companies and required three more to answer questions immediately. The published cease and desist letter redacted the names of the 5 targeted companies, but carelessly forgot to erase the name of the Word documents which read, “Microsoft Word - Celsius Letter 10.14.21” and 'Microsoft Word - Nexo Letter.”
It doesn’t take a genius to realize that the letters were sent to Celsius and Nexo, especially considering their ongoing battle in the state. Quickly after the mistake circulated the internet, the documents were republished minus the names. Similar crackdowns are taking place in Texas, Kentucky, and New Jersey. If you use these products in these states, I highly suggest you stay on top of the news to avoid being blindsided by regulation.
NEXO Says NYAG Letter Is A "Mix Up"
To add to the story above, NEXO was quick to point out that their products are not even offered in New York State, and that this was a clear mix up.
“Nexo is not offering its Earn Product and Exchange in New York, so it makes little sense to be receiving a cease and desist order for something we are not offering in New York anyway.”
According to Nexo, the allegations of operating an unregistered business in New York “appears to be a case of mixing up the recipients of the letter.” The company also confirmed the use of IP-based geoblocking on their platform that prevents New Yorkers from participating in locally unregistered services:
“Still, we will engage with the NY AG and seek clarity. Our company retains top-tier legal counsel both from US-based law firms and our in-house legal team.”
In addition, the company has also highlighted that Nexo Terms & Conditions explicitly state, “we do not offer our Earn product and Exchange in New York.”
What a massive mistake by the NYAG.
Interactive Brokers Opens Crypto Trading
Another massive brokerage firm is opening the doors to crypto trading and custody, specifically for RIAs (Registered Investment Advisers). They plan to open for retail further down the road.
News like this used to be a huge deal and would send price flying - now it is a small blip on the radar and almost unnoticed.
Crypto is a part of the mainstream news cycle and we see these stories daily. We have made it.
The Wolf Of All Streets Podcast Ft. Gabor Gurbacs
After nearly a decade of speculation and anticipation, the futures-based Bitcoin ETF is finally here. ETF proposals have been endlessly denied by the SEC, but a compromise has finally been made. Gabor Gurbacs, the Director of Digital Assets Strategy at VanEck (one of the companies soon to have an ETF) came on the show to discuss all things ETF. Gabor laid out how the product will be structured, who will benefit, the untapped potential, and what we can expect to see next. This is shaping up to be one of the largest news events of the year.
Gabor Gurbacs and I discussed:
The SEC approves a Bitcoin ETF
What is a futures-based ETF?
Spot price vs. futures price
State by state regulation
The SEC has to make a decision
The institutional wall of money
Buy the rumor, sell the news
Will yields increase from the ETF?
What can come from an ETF?
What ETF is next?
Why are we in crypto?
This episode is sponsored by: SORARE
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