Crypto: Failed Rally Builds Ambiguous Pattern

Before starting the crypto update, I would like to check an assumption circulating in the media regarding a strong correlation of Bitcoin with the Nasdaq 100 index in the chart below.


It is safe to say that over the past two years, most of the time, Bitcoin was in a positive correlation with the Nasdaq 100 index. However, the current positive relationship is cooling down as we saw an almost absolute correlation at the beginning of February at 0.91, and these days it slipped down to 0.34.

Miscorrelation periods usually appear due to the higher volatility of Bitcoin and longer periods of price inertia in the stock index. In other words, these two instruments have different speeds. Continue reading "Crypto: Failed Rally Builds Ambiguous Pattern"

The Truth Behind The Bitcoin Sell-Off

Let's get right to it, if you invest long enough, you're going to have to deal with markets behaving in knee-jerk ways, and the recent selloff is Bitcoin (BTC) fits the bill to a T.

The fact is Bitcoin, along with the entire crypto asset class, got pummeled because the Fed signaled that they're in the mood to raise interest rates sooner rather than later. This outlook, which came from the Fed's minutes of the December meeting, wasn't what the markets expected. And we all know that when the markets don't get what they expect, they take their toys, go home, and sell pretty much everything in sight.

So, what juicy secret did the minutes reveal? As with most Fed announcements, precise forecasts are hard to glean. But the gist was that the Fed would raise rates sooner rather than later.

But if you think that it was just crypto that took it on the chin, think again. This more hawkish view on interest rates also hammered stocks, especially tech stocks.

All told, since the beginning of 2022, Bitcoin has dropped 14%, the NASDAQ 7%, and the S&P 4%. So, basically, once the Fed's minutes hit the street, there was nowhere to hide.

What’s So Bad About Higher Interest Rates?

So, why don't markets like higher rates? Continue reading "The Truth Behind The Bitcoin Sell-Off"

Bitcoin 2022 Price: $113,972!

While I’m not in love with price predictions, when I figured out a reasonable 2022 target for Ethereum (ETH), I have to admit I kinda enjoyed it.

So, I figured, why not kick off our first installment of 2022 with a bold prediction of where we think the price of Bitcoin (BTC) is headed over the next 12 months?

For this exercise, we'll ignore the fundamental factors that are in play behind these price movements. Instead, we'll just look at some charts, do a little math, and see where our BTC prediction journey leads us.

So, let's get started! Continue reading "Bitcoin 2022 Price: $113,972!"

Top Cryptos vs. Bitcoin In 2021

2021 is done, and we can check the performance of top cryptocurrencies compared with the main coin for the past year. I promised to build this leaderboard in my earlier post where I compared fiat currencies with gold.

The crypto universe repeatedly extends as new coins and tokens appear in the arena one by one. I put the top ten largest cryptocurrencies by the market cap against Bitcoin in this post. I skipped stablecoins and Shiba Inu coin as the latter has less than one year of history.

Bitcoin vs. Crypto
Diagram by Aibek Burabayev; data source: Binance

It was a good year for Bitcoin, gaining almost 60% against the U.S. dollar in 2021. However, in its own digital universe, it was the loser to all top cryptocurrencies, as you can see in the comparison above.

Let's check the top three leaders. Continue reading "Top Cryptos vs. Bitcoin In 2021"

Our Greatest Crypto Hits Of 2021!

Don't blame me, but I couldn't resist the temptation of closing out 2021 with a list of crypto's 2021 greatest hits. While I came up with a bunch, I had to narrow it to three.


Greatest Hit #1: Jaw-dropping Research

There's no doubt about it: One of the greatest crypto hits of 2021 had to be the two bombshell research reports from mainstream financial powerhouses.

The first from consultancy behemoth Deloitte surveyed executives from around the world and found that blockchain would fundamentally change the way they conducted their businesses. And this seismic shift wasn't happening 10 or 20 years down the road. Nope, these corporate heads saw the shift happening in the next 24 months.

And that wasn't all. A staggering 81% of the executives thought that blockchain was both scalable and adoptable. And that means that getting their businesses in the blockchain game was not only doable, but it could grow with their businesses. In fact, three quarters said they didn't have much of a choice: If they didn't get in the blockchain game, they were going to lose competitive advantage. Continue reading "Our Greatest Crypto Hits Of 2021!"