The Wolf Den #56 - Alts, Bitcoin, Hedge Funds And More
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This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!The price of Bitcoin is presently up roughly 90% during the coronavirus quarantine. It was up well over 100% at the recent top.The S&P is up roughly 37% - also impressive.Why is Bitcoin outperforming every other market since the bottom?“There is now a pretty widely held belief amongst our investors that bitcoin has solidified its place as digital gold,” says Grayscale managing director Michael Sonnenshein. “As things have become increasingly uncertain and we’ve seen levers get pulled by central banks and governments, investors have allocated to bitcoin. When the shelter-in-place began and everything was getting deleveraged, stocks were getting sold, gold getting sold, bitcoin getting sold... now bitcoin has rebounded like crazy. That’s bitcoin demonstrating its resilience as an investment.”As you may recall from my previous newsletter, Grayscale has bought 1/3 of all of the mined Bitcoin in the past few months, after buying 50% of the Ethereum mined since the beginning of the year. Their actions speak as loud as their words. As a conduit to institutional investment and big money, they are buying because there is tremendous demand for Bitcoin. Mind you, this does not show up as volume on an exchange chart. Grayscale is buying directly from the miners and "selling" it as GBTC on the stock exchange.It is hard to interpret this information in a negative light. As traders we often find ourselves caught up in the price action and chart, ignoring the bigger picture. That's fine - I treat my trading as a separate portfolio and approach it from a separate mind frame, generally trading the chart from level to level. That's also the very reason that I am primarily an investor. From the standpoint of a HODLer who buys the dips, I view this as very bullish in the long term. I will continue to buy dips, now matter how big they are.The Fed is going to continue to print money. QE till' infinity. People's eyes are open to the implications on a wide scale for the first time in my life. This really is the case for Bitcoin - even if you only own a little bit.Keep your eye on the prize.The small moves that we make profit on as traders are nothing compared to the potential gains from patiently waiting for Bitcoin to show it's true strength. A few thousand dollar moves in price action in either direction are utterly meaningless with this in mind. Keep buying with money you can afford to lose and won't need. As for the stock market... I still remain sidelined as a trader. I wrote a piece below about hedge fund performance in the past 2 months. Spoiler - they are getting destroyed. Only 13% of hedge funds were profitable in both March and April. It sucks to be a trader in an irrational market, even one that is rising fast. For now, the crypto market is far more enjoyable and predictable and therefore where I will spend my time. I am happy to chart your requests on Thursdays for stocks as always - I am just not interested myself in trying to solve a puzzle that's built on money printing and stimulus in the face of global economic disaster. If I feel this way, I am not comfortable sharing trade ideas with all of you. Even my hedge fund buddies from college are scratching their heads and taking money off the table.I shared a special issue of altcoin trades on Friday and almost all of them were profitable - REALLY profitable. If you missed it, you can read it here - although it was opened 105%, which is a new record... so it seems everyone read it!https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-55-btc-dominance-and-alt-setups-250783As I have said many times before, risk management is not just knowing where to set a stop loss and how to size a position. It's also about knowing when to swing for the fences and go heavy and when to back off and sit on the sidelines. As of Friday my altcoin exposure is 40% of my portfolio. This has already been wildly profitable as I always exit positions as they are on the way up and move the stops into profit. My view has not changed, but I am aware that this "alt season" could end at any moment.My goal is to accumulate more Bitcoin through trading alts, then to accumulate USD after Bitcoin rises. Take advantage of these rare moments when alts can be traded for profit in Bitcoin, especially when Bitcoin is dropping. When you buy an alt with Bitcoin, you are selling Bitcoin. Bitcoin drops, the alt rises. You take profit and are now buying Bitcoin with the alt at a lower price. That's the game we play. Every alt transaction can be viewed through the lens of trying to buy or sell Bitcoin.What’s in this issue?Bitcoin Thoughts And AnalysisThe Wolf Of All Streets Podcast Ft. CryptoISOTrading Tip - Cut That LoserAltcoinsRich People Pay The Lowest Tax Rate - AnimatedFrance Tests The Digital EuroNGrave Hardware WalletGoldman Sachs Client Call On BitcoinStablecoin Usage Hurts BTC As A Payment Method?Gold + Bitcoin Index From CoinSharesHedge Funds Are Getting CrushedVoyagerPhemex
The Wolf Den #56 - Alts, Bitcoin, Hedge Funds And More
The Wolf Den #56 - Alts, Bitcoin, Hedge Funds…
The Wolf Den #56 - Alts, Bitcoin, Hedge Funds And More
This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!The price of Bitcoin is presently up roughly 90% during the coronavirus quarantine. It was up well over 100% at the recent top.The S&P is up roughly 37% - also impressive.Why is Bitcoin outperforming every other market since the bottom?“There is now a pretty widely held belief amongst our investors that bitcoin has solidified its place as digital gold,” says Grayscale managing director Michael Sonnenshein. “As things have become increasingly uncertain and we’ve seen levers get pulled by central banks and governments, investors have allocated to bitcoin. When the shelter-in-place began and everything was getting deleveraged, stocks were getting sold, gold getting sold, bitcoin getting sold... now bitcoin has rebounded like crazy. That’s bitcoin demonstrating its resilience as an investment.”As you may recall from my previous newsletter, Grayscale has bought 1/3 of all of the mined Bitcoin in the past few months, after buying 50% of the Ethereum mined since the beginning of the year. Their actions speak as loud as their words. As a conduit to institutional investment and big money, they are buying because there is tremendous demand for Bitcoin. Mind you, this does not show up as volume on an exchange chart. Grayscale is buying directly from the miners and "selling" it as GBTC on the stock exchange.It is hard to interpret this information in a negative light. As traders we often find ourselves caught up in the price action and chart, ignoring the bigger picture. That's fine - I treat my trading as a separate portfolio and approach it from a separate mind frame, generally trading the chart from level to level. That's also the very reason that I am primarily an investor. From the standpoint of a HODLer who buys the dips, I view this as very bullish in the long term. I will continue to buy dips, now matter how big they are.The Fed is going to continue to print money. QE till' infinity. People's eyes are open to the implications on a wide scale for the first time in my life. This really is the case for Bitcoin - even if you only own a little bit.Keep your eye on the prize.The small moves that we make profit on as traders are nothing compared to the potential gains from patiently waiting for Bitcoin to show it's true strength. A few thousand dollar moves in price action in either direction are utterly meaningless with this in mind. Keep buying with money you can afford to lose and won't need. As for the stock market... I still remain sidelined as a trader. I wrote a piece below about hedge fund performance in the past 2 months. Spoiler - they are getting destroyed. Only 13% of hedge funds were profitable in both March and April. It sucks to be a trader in an irrational market, even one that is rising fast. For now, the crypto market is far more enjoyable and predictable and therefore where I will spend my time. I am happy to chart your requests on Thursdays for stocks as always - I am just not interested myself in trying to solve a puzzle that's built on money printing and stimulus in the face of global economic disaster. If I feel this way, I am not comfortable sharing trade ideas with all of you. Even my hedge fund buddies from college are scratching their heads and taking money off the table.I shared a special issue of altcoin trades on Friday and almost all of them were profitable - REALLY profitable. If you missed it, you can read it here - although it was opened 105%, which is a new record... so it seems everyone read it!https://www.getrevue.co/profile/TheWolfDen/issues/the-wolf-den-55-btc-dominance-and-alt-setups-250783As I have said many times before, risk management is not just knowing where to set a stop loss and how to size a position. It's also about knowing when to swing for the fences and go heavy and when to back off and sit on the sidelines. As of Friday my altcoin exposure is 40% of my portfolio. This has already been wildly profitable as I always exit positions as they are on the way up and move the stops into profit. My view has not changed, but I am aware that this "alt season" could end at any moment.My goal is to accumulate more Bitcoin through trading alts, then to accumulate USD after Bitcoin rises. Take advantage of these rare moments when alts can be traded for profit in Bitcoin, especially when Bitcoin is dropping. When you buy an alt with Bitcoin, you are selling Bitcoin. Bitcoin drops, the alt rises. You take profit and are now buying Bitcoin with the alt at a lower price. That's the game we play. Every alt transaction can be viewed through the lens of trying to buy or sell Bitcoin.What’s in this issue?Bitcoin Thoughts And AnalysisThe Wolf Of All Streets Podcast Ft. CryptoISOTrading Tip - Cut That LoserAltcoinsRich People Pay The Lowest Tax Rate - AnimatedFrance Tests The Digital EuroNGrave Hardware WalletGoldman Sachs Client Call On BitcoinStablecoin Usage Hurts BTC As A Payment Method?Gold + Bitcoin Index From CoinSharesHedge Funds Are Getting CrushedVoyagerPhemex