The Wolf Den #598 - What If I Told You…
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In This Issue:
What If I Told You…
Legacy Markets
Big Crypto Meets Big Tech
Treasury Attacks Bittrex
The SEC Got Bored
Why S&P Global Is Betting On Crypto | Charles Jansen And Chuck Mounts
My Recommended Platforms And Tools
What If I Told You…
Retail investors often struggle with taking profit. There is a shared feeling among new entrants to the market that buying an asset means never selling. It feels almost like swearing a blood oath to the market gods.
This is obviously a foolish way to approach the market.
What if you could swap all of your crypto for cash, save taxes, avoid fees, and escape the grinding mental punishment of the crypto echo chamber?
Would you take the deal?
You would be free to do whatever you please with your stack of dollars - pay off a mortgage, buy a car, invest in real estate or take a vacation. After all, cash is king when asset prices are depressed.
What I just described above isn't a hypothetical situation.
It’s called... selling.
Would you buy exactly what you own today if had you had cash instead of crypto? If the answer is yes, then there's no reason to do anything. If the answer is no, then now is an ideal time to reassess your plans.
This is the case for other assets as well.
If cash feels comfortable, then be in cash. But if crypto is still a part of your long term plan (like me), then you are in the right spot.
Legacy Markets
US stocks turned higher in early trading, while Treasuries held steady despite producer price data keeping pressure on the Federal Reserve to tighten policy. UK markets were roiled once again by policy concerns.
The S&P 500 rebounded, staging a comeback after a five-day slump. The tech-heavy Nasdaq 100 outperformed. Treasuries were little changed, with the policy-sensitive two-year yield holding near 4.3%. The dollar was steady.
Data showed prices paid to US producers rose in September by more than expected ahead of a key measure of consumer inflation due Thursday that’s set to return to a four-decade high.
Key events this week:
Earnings this week include: JPMorgan Chase & Co., Citigroup Inc., Morgan Stanley, BlackRock Inc., Delta Air Lines Inc., UnitedHealth Group Inc., U.S. Bancorp, Wells Fargo & Co.
FOMC minutes for September meeting, Wednesday
Fed’s Michelle Bowman and Neel Kashkari speak
ECB’s Christine Lagarde speaks
US CPI, initial jobless claims, Thursday
G-20 finance ministers and central bankers meet, Thursday
China CPI, PPI, trade, Friday
US retail sales, business inventories, University of Michigan consumer sentiment, Friday
BOE emergency bond buying is set to end, Friday
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.4% as of 9:44 a.m. New York time
The Nasdaq 100 rose 0.7%
The Dow Jones Industrial Average rose 0.4%
The Stoxx Europe 600 fell 0.6%
The MSCI World index was little changed
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $0.9706
The British pound rose 0.7% to $1.1043
The Japanese yen fell 0.6% to 146.77 per dollar
Cryptocurrencies
Bitcoin rose 0.6% to $19,132.33
Ether rose 1.5% to $1,300.5
Bonds
The yield on 10-year Treasuries declined one basis point to 3.93%
Germany’s 10-year yield advanced eight basis points to 2.37%
Britain’s 10-year yield advanced 15 basis points to 4.59%
Commodities
West Texas Intermediate crude fell 1.5% to $88.01 a barrel
Gold futures fell 0.6% to $1,676 an ounce
Big Crypto Meets Big Tech
Google, meet Coinbase. Coinbase meet Google.
After months of closed-door conversations, Google Cloud and Coinbase announced a 4 part strategic partnership to expand crypto services in Web3.
The first vertical of the partnership allows Google Cloud customers to pay in crypto via Coinbase Commerce. This merchant-focused platform allows anyone in the world to seamlessly get paid in crypto and integrate crypto business analysis. Web2 business meets Web3 economy.
Second, Web3 developers will now have access to Google Cloud blockchain data through BigQuery, powered by Coinbase Cloud’s node service. Less time and resources dedicated to build out complex infrastructure leaves more time to find the next killer app and use case.
Third, Google will leverage Coinbase Prime (institutional crypto investing platform) to service institutional needs in crypto. And the fourth is a new effort between the two to process fresh data to discover new insights and “enhance the global reach” of crypto knowledge.
While this story will be forgotten by tomorrow in the depths of the bear market, this is another MAJOR example of the groundwork being laid for BIG growth to come.
Treasury Attacks Bittrex
Bittrex has been accused of violating sanctions and AML obligations. They agreed to pay two settlements to OFAC and FINCEN for $24m and $29m, respectively.
For OFAC, this is their largest virtual currency enforcement action to date. For the two agencies, it's their first “parallel enforcement." As an observer, this SCREAMS that regulatory bodies are now fully focused on crypto.
The violations were sanctions-related, which is exactly what Kraken is being investigated for as well.
Consider the hammer dropped.
Frankly, settlements are often the best-case scenario for exchanges and projects that are about to be hit by the regulatory hammer. Rather than stifle what’s being built, exchanges pay the price and keep on pushing forward.
The SEC Got Bored
Are NFTs securities?
The SEC's newest investigation is into Yuga Labs and Bored Ape Yacht Club. This makes a clear statement that almost no crypto asset is safe, and that the SEC intends to continue regulating by enforcement.
Rather than offer any clarity as to what is an unregistered security, regulators continue to punish the crypto industry for thought crimes.
As expected, the announcement caused $APE to drop like a fly, which seems like poor protection by the SEC of consumers who invest in the asset. Right?
Why S&P Global Is Betting On Crypto | Charles Jansen And Chuck Mounts
S&P Global is the backbone of the financial system - its famous rating system provides markets with insights into the financial position of many public companies and helps investors and financial institutions make investment decisions.
Now S&P Global wants to build a similar system for crypto to help institutional investors navigate the new world and eventually drive the adoption. I sat down with 2 people who are building this new business at S&P - Charles Jansen, head of DeFi transformation, and Chuck Mounts, chief DeFi officer - and we discussed why S&P is moving towards crypto and how to overcome the obstacles on the way to crypto adoption.
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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. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.
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