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October 6, 2021
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October 6, 2021

Bitcoin Continues its Impressive Run!

Oliver Grah
Oct 6, 2021
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Introduction

Today, Bitcoin has proven its right to exist once more: In times of peak uncertainty in the global financial markets, BTC is showing incredible strength, providing the “safe haven” it’s intended to be.

Most importantly, Bitcoin has surpassed a market cap of $1 trillion once more – an important symbolic achievement in being perceived as a global macro asset!

Twitter avatar for @Blockworks_Blockworks @Blockworks_
Bitcoin market cap: $1,028,735,615,567

October 6th 2021

31 Retweets193 Likes

Bitcoin Is Showing Strength

  • After BTC smashed through critical price levels today, looking at liquidated shorts must give a feeling of satisfaction to every Bitcoin holder…

    Twitter avatar for @WClementeIIIWill Clemente @WClementeIII
    >$26.2M of Bitcoin short liquidations in 10 minutes REKT
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    October 6th 2021

    180 Retweets1,577 Likes
  • However, today’s BTC pump seems to have been mostly spot-driven, which makes sense with open interest being rather muted and liquid BTC supply at record lows.

Twitter avatar for @ki_young_juKi Young Ju 주기영 @ki_young_ju
Someone(s) bought up $1.6B worth $BTC via market orders in just 5 minutes. Short liquidations seem relatively smaller like $17M at that time. This is more like whale buying, not cascade liquidations.
cryptoquant.com/overview/btc-m…
Image

October 6th 2021

354 Retweets1,231 Likes
  • The resilience BTC is showing while stock prices are tumbling is simply stunning. Just look at the comparison of the BTC with the chart of the DAX below (since American markets have yet to open at the time of writing): Stock markets are in a clear downtrend, while Bitcoin has entered a short-term uptrend.

TradingView Chart
Source: TradingView
  • For close observers of all asset markets, the current strength of BTC is quite remarkable.

Twitter avatar for @zhusuZhu Su 🔺 @zhusu
There's some confluence of Middle East / Softbank / Lat Am / high oil / stocks dump / Bitcoin moon that have my Spidey senses tingling tbqh Intergalactic moves occurring atm, truly dynastic stuff

October 6th 2021

66 Retweets844 Likes
Twitter avatar for @BarrySilbertBarry Silbert @BarrySilbert
Bitcoin knows something

October 6th 2021

30 Retweets281 Likes
  • BTC’s recent strength in time of macro uncertainty could have different reasons: The recent spike in inflation metrics, dwindling trust in the US’ ability to keep its fiscal and monetary policy in check, and of course, the continued onboarding of institutional investors who seek BTC as a “system hedge” – in other words, a way to get out of the shaky stock markets.

Twitter avatar for @jnordvigJens Nordvig @jnordvig
Is it a coincidence that bitcoin has broken $50K at the same time as the news media is full of stories about a potential US default as a function of failure to raise the debt ceiling in October? The chart shows that $BTC (white) spiked exactly as US T-bill yields (yellow) spiked
Image

October 6th 2021

5 Retweets18 Likes
  • Even investing legend George Soros, "the man who broke the Bank of England", is feeling uneasy in the stock markets and has confirmed (through the CIO of the $27 billion Soros Fund Management family office) to hold Bitcoin today. It is the first on-the-record confirmation from Soros to be holding crypto

Twitter avatar for @zerohedgezerohedge @zerohedge
Soros Is Cashing Out Of Stocks, Putting Some Capital Into Cryptocurrencies
Soros Is Cashing Out Of Stocks, Putting Some Capital Into CryptocurrenciesIf there were a crisis today, the firm could put another $5 billion to work “in pretty short order.”zerohedge.com

October 5th 2021

1,614 Retweets5,946 Likes

Regulation Yes, Banning No

  • In a hearing yesterday, Gary Gensler stated that the SEC had no intention to ban crypto – only to regulate it. What doesn’t come much as a surprise is an important statement nevertheless and could give Bitcoin an even stronger boost, since it’s the crypto asset least in the crosshairs of regulators.

Twitter avatar for @cryptoBloomberg Crypto @crypto
SEC Chair Gary Gensler says the U.S. won’t follow China’s lead in banning digital tokens
Bloomberg - Are you a robot?trib.al

October 5th 2021

518 Retweets1,827 Likes
Twitter avatar for @punk65296529 @punk6529
was not really concerned that crypto was outright illegal tbh. the attacks are going to be more subtle than that

Cointelegraph @Cointelegraph

You can stop holding your breath now. Gary Gensler, head of the United States Securities and Exchange Commission, has confirmed that his agency does not have the authority or intention to ban cryptocurrency. https://t.co/qxdr937A2x (Reporting via @samuel_haig)

October 6th 2021

2 Retweets43 Likes
  • Below Maya Zehavi is laying out a possible scenario for the next few weeks. However, it will depend on the severity of the regulatory actions to really get a flight from stablecoins and DeFi, leading to a crash of the broader altcoin market.

  • With the lingering uncertainty, BTC really seems to be the safer play until the regulatory FUD gets resolved (at least that’s the thinking of institutional investors).

Twitter avatar for @mayaziMa/ya Zehavi @mayazi
My regulatory crackdown scenario is: * impose stablecoin limiting their issuance to FDIC banks * a flight from stablecoins will price them at a discount * FUD will crash crypto > discounted stablecoins * approve crypto ETFs for FI/banks to buy the dip
Bloomberg - Are you a robot?bloomberg.com

October 5th 2021

3 Retweets19 Likes
  • While the “Bitcoin over stablecoins and DeFi” scenario might certainly play out in the short- to midterm, stablecoins and DeFi are not going anywhere – and it seems like the regulators agree (see today’s Reuters headline below).

  • Regulators simply want to bring stablecoins into a regulated framework – which is far from eradicating or banning them. Of course, this will lead to tension and a restructuring of the current stablecoin landscape. But eventually, once the regulatory approval is here and the floodgates to stablecoins are opened, a limitless amount of money can pour into the crypto markets...

    Source: Reuters

The proposals, put out to public consultation before being finalised early next year, put into practice what regulators have long called for: the same rules for the same type of business and accompanying risks.

Ethereum Is Gaining Major Institutional Adoption

  • Before 2021, the common belief of banks and corporations was: “Blockchain yes, crypto no.” This seems to be shifting towards the realization that public blockchains with a token-incentived model such as Etherereum are clearly superior to siloed private blockchain networks.

Twitter avatar for @Blockworks_Blockworks @Blockworks_
Tokenized shares on Ethereum have been deposited on Credit Suisse, one of Switzerland's largest banks
Credit Suisse Integrates Security Tokens on Public Ethereum - BlockworksTaurus facilitates Swiss-regulated tokenized shares of travel and leisure company Alaia SA. Security tokens regulated by the Swiss Capital Markets and Technology Association (“CMTA”) standards, using the Ethereum public blockchain.blockworks.co

October 6th 2021

10 Retweets36 Likes

The Richest Under 30 Year Old in the World – a Crypto Entrepreneur

  • It’s incredible what crypto – and FTX-founder Sam Bankman-Fried in particular – have achieved in a short period of relentless building and innovating.

Twitter avatar for @ForbesCryptoForbes Crypto @ForbesCrypto
Sam Bankman-Fried built a $22.5 billion fortune before his 30th birthday by profiting off the cryptocurrency frenzy—but he’s not a true believer. He just wants his wealth to survive long enough to give it all away: by @Steven_Ehrlich and @ChaseWithorn
The Richest Under 30 In The World—All Thanks To CryptoFTX cofounder Sam Bankman-Fried built a $22.5 billion fortune before his 30th birthday by profiting off the cryptocurrency frenzy—but he’s not a true believer. He just wants his wealth to survive long enough to give it all away.on.forbes.com

October 6th 2021

73 Retweets386 Likes

Extreme Scenarios – and How to Invest Accordingly

  • In below’s Tweet, you see a scenario for the months to come outlined by popular crypto trader Michael van de Poppe. While my outlook aligns overall with his, I want to take the chance to clarify a few things regarding investing and risk management.

Twitter avatar for @CryptoMichNLMichaël van de Poppe @CryptoMichNL
Deflation & crisis to come next within max 12-18 months. Sell all your crypto in max 6-9 months. Sit on cash, buy crypto, commodities one year later and you're king for life.

October 6th 2021

678 Retweets4,020 Likes
  • This type of extreme outlook is great for catching attention on social media – but more often than not reality will land somewhere different.

  • Most people have extreme scenarios in their heads, which makes sense to build a personal framework but should NOT be the only guide for making investing decisions. What if your analysis is wrong? Being prepared for DIFFERENT outcomes is key to successful investing. As Warren Waffet famously stated:

Rule number 1: Never lose money. Rule number 2: Don't forget rule number 1.

  • Anticipating the future correctly and investing sensibly are two separate things: You might be right 9 out of 10 times and still blow up in the end. It is here where risk management and position sizing come into play.

  • Experienced investors know that timing and quantifying a likely scenario is much harder than anticipating that "something will happen at some point in the near future". That’s why they rarely go “all-in”.

  • If you were “quite sure” that the crypto markets will have a good few months ahead, you might be invested 60 % in crypto (according to your conviction level and risk appetite), and have the rest in stablecoins, precious metals, or – yes, that’s also possible: fiat. A position in USD for example (even if only short- to midterm) is also a position. E.g. during a liquidity crisis such as in March 2020, cash is king.

Reminder: Leverage Trading Is a Game with Fire

  • For anyone new to the crypto space, leverage trading seems to have a magical attraction: It promises fast gains with hardly any effort. Most realize soon though that making money with leverage trading is hard – and not losing any even harder.

  • The story below is a reminder that leverage trading is a dangerous game that can destroy fortunes. Most people entering crypto would do much better just becoming crypto investors – and not touch leverage trading.

Twitter avatar for @devchartDevchart 👨🏻‍💻 @devchart
Yikes
Image

October 5th 2021

79 Retweets936 Likes
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