(Dis)Correlation Between Crypto And Stocks
Either you adapt or you will never make money.
In the last two months, Bitcoin has behaved more like a stablecoin than a volatile cryptocurrency. Its volatility, as we commented on Wednesday, is at historic lows. This situation has caused it to become a much stronger store of value since September than many of the major global currencies.
This dominance of the dollar against other currencies seems to be merely circumstantial. It is always the same. First, it is the FED that raises interest rates. This increase makes people interested in holding dollars against other currencies because the interest paid for holding them is higher. Then, the rest of the central banks continue to raise interest rates, these increases stabilize the demand for other currencies, and dollars are sold.
The Fed realizes that extremely aggressive rate hikes can destroy the economy in the US and globally. Most likely, they will continue to hike until the end of this year and stop at the beginning of next year.
Tip Asymmetric Finance: maybe it would be good to sell (very) slowly the investments you have in USD and acquire those same investments in EUR, CHF, and GBP.
What about Bitcoin
I'll give you a trick when it comes to an understanding the markets. High-growth stocks are the first to start rising after a significant recession. Among the top growth stocks, you could place the major cryptocurrencies, Bitcoin and Ethereum.
This week we have already seen cryptocurrencies perform extremely better than the markets.
These will continue to be rated as high-risk assets until they become a store of value. For those of you who have seen the series "The Playlist", it tells the story of Spotify and how at first, the major record labels refused to acquire this APP, but later they realized its benefits.
The same thing is happening with Bitcoin, its adoption is slow, but those who adopt it first will know how to make a lot of money.
According to the following graph, we are already in the last step. When it reaches one billion users (1/7 of the world's population), it will become one of the world's main stores of value.
Let's be very clear. You won't make money if you don't know how to adapt.
Discographies have adapted
The major film companies have adapted
The world of tourist apartments has adapted.
The letter delivery system has adapted
The banking system will adapt
If you want, you can keep thinking that it is hazardous, but little by little, you will be 1 of the billion people who will adapt.
The billion people who adapt will earn money. Those who don't adapt will pay Bitcoin at over $1M.
Remember, "As of today, there are only 1M people in the world with at least 1 Bitcoin, and this number is not expected to go up."
🎁 Gift
Next week we will give our subscribers one of the best options books out there on the market. It is a staple for all those who want to start understanding the world of options.
The book has many tips that will help you know how to leverage for 100 without increasing your portfolio risk or how to make winning strategies for all kinds of market situations.
We use many of these strategies when choosing our OTM PUTs and CALLs. They are very cheap contracts in which we can make a lot of money.
Now we leave you our portfolio in detail.