I have a passion for following the news & when it comes to trading in the short term, fundamentals & the growth of social media are playing a bigger role, as we sit at home and think about where to spend our money, lets be realistic, bank near zero interest rates are not worth us having our cash doing nothing. I have written many times that there is a big difference between trading and investing. Short term speculation has risk, no doubt but more people are trading online like never before.
This just caught my eye, and its strongly reflects what we all know, influencers influence us.
Bitcoin surges as Elon Musk changes his Twitter bio to #bitcoin
"Bitcoin surged early on Friday after Elon Musk tagged the cryptocurrency in his Twitter biography".
The price of bitcoin BTCUSD, +11.04% was last up 11% at $36,955, according to CoinDesk prices, after the Tesla TSLA, -3.32% Chief Executive appeared to express support for the cryptocurrency. After changing his Twitter TWTR, +7.01% bio to #bitcoin, he then tweeted “In retrospect, it was inevitable.”
So, fundamentals and social media are moving the price again.
So as I recap.
Dear crystal ball, what shall I do with #Bitcoin?
My son asked me why I’m not writing about the surge in Bitcoin and I said, “the news is already out in the ether.”
However, not to miss out, I have an opinion…For the first time in a long time, I really don’t know!
My granddad taught me a few things, ok, I didn’t inherit anything in terms of money, but I got some magical proverbs. Shame I can’t cash them in.
One that resonates is that he always said, “you can judge a man by his gait”, in those days it was “man”, today it would be “person”, although I’m trying to translate it from Greek to English, “son, the way a man enters a room and strides around shows you what and who he is, at a glance”.
What am I waffling about? The reason I remembered my old grandad’s saying, was the way Bitcoin is strutting its stuff on the news again today, here, and now.
The problem is, I can’t judge its walk, its stride, its posture, position, pose and more importantly its value and I don’t know what to do.
I’m in so many thoughts, and purportedly have been following it for years.
At the start, when I was a floor manager and fund manager, I brushed it aside as a risky fad. When it hit 20k and then fell dramatically, I justified my opinion. But, but, but, but it’s a resilient little bugger and its back, won’t go away.
Okey-dokey, do I need to show charts and movement of the asset over the years? I’m sure if you’re reading this you know. Do I need to explain the history of Bitcoin and block chain, I sure you know?
Do I need to give an opinion as to where its price is going? Yes. But I don’t know!!!!!!!!
What I do know is that there are negative and positive headlines out there that are influencing the price.
I often succeed in fathoming fundamentals but this one is genuinely tricky.
Some headlines I am reading on the web as I write: -
1. Day after hitting record high, investors keep betting on Bitcoin. Aljazeera. Ok, dodgy.
2. Bitcoin hits record high on 12th anniversary of its creation. Guardian, I’m a socialist.
3. Bitcoin Drops More Than 10%: Is the BTC Market Correction Here? Finance Magnets, ok leveraged.
4. Bitcoin is breaking records because bigger investors are buying it now, says PwC, ok, curious.
5. Bitcoin Falls Most Since March as Volatility Grips Trading, I like Bloomberg.
6. Bitcoin’s Bulls Should Fear Its Other Scarcity Problem, Bloomberg again.
7. 2020 was great for bitcoin but experts are wary of a correction, Mint, not sure who they are.
8. Bitcoin prices may skyrocket to $2 lakh this year: Economic Times??
9. Smaller cryptocurrencies are surging after bitcoin’s wild rally took it past $34,000, CNBC, lol, USA
10. New Year brings glad tidings of the Bitcoin ‘stimmy’ trade, FT, back to establishment
The list of headlines is endless, so what’s the point?
Sorry, still don’t know the end game on this but I have an idea.
I didn’t buy any cryptocurrencies at the start and now I’m confused as to where Bitcoin will end up!
Guggenheim’s Scott Minerd Says Bitcoin Should Be Worth $400,000, aghhh!
Ok, I digress, this is what I will do, and please note, this is me, my risk, my ideas, my decision.
I’m going to invest in a portion of the coin in the next couple of weeks, hopefully it may correct back to a decent price for entry, however I’m going to trade the volatility, all day long, now.
Fundamentals, as usual, posturing, Elon Musk tweets about Bitcoin, the asset rises, breaking new records. But! what will happen if President elect Biden calls for stricter regulation on these digital currencies, as an example?
Volatility is what an experienced CFD trader likes.
In terms of long-term investment, I truly do not know the direction, long term of the stocks I buy, but, I have and will invest in traditional assets using my analysis, however with crypto’s they still have a shadow of uncertainty for me.
Visit my site, with my preferred partners, you can buy them, trade them, sell them.
There are numerous strategies used by traders to capitalise on assets that exhibit high volatility and trust me Bitcoin is one. Since most of these strategies involve potentially unlimited losses or are quite complicated, they should only be used by expert traders who are well familiar with the risks of CFD trading. Beginners should stick to practicing on a demo until they are confident to speculate real capital
FCA bans the sale of crypto-derivatives to retail consumers
Press Releases First published: 06/10/2020 Last updated: 06/10/2020
How to Buy Bitcoin Legally in the U.S.
Elon Musk inquired on Twitter about 'large' bitcoin transactions after a crypto booster suggested he convert Tesla's balance sheet
Dec. 21, 2020, 04:21 PM
Still confused, so am I, hahahahaha.