Citadel, Susquehanna, and Soros buy Silvergate, and Bitcoin's Average Block Size hits All-Time-High
Crypto rallied following today's CPI report that showed that inflation grew at a 6.4% annual rate, slightly higher than expected. BTC 0.43% and ETH 0.48% rose 1.53% and 2.93%, respectively, while SPX and NDQ were down 0.14% and up 0.23%. Interestingly, more traditional finance giants have acquired shares of Silvergate (SI). Citadel Securities disclosed a 5.5% stake in the crypto-friendly bank, Susquehanna Advisors Group disclosed a 7.5% stake, and George Soros's fund...
As shown below, Bitcoin's forward performance is far stronger when it is trading above its 200D moving average: >200D, 6M forward return +193% <200D, 6M forward return +10% You get the picture, Bitcoin is a network effect/network value asset, and also apparently aided by price momentum. _STRATEGY: BUY BITCOIN OR BUY CRYPTO EQUITIES_ The associated action for Rule #3 is simple. - go long _WHY IS THIS...
Unpopular opinion --> We expect stable/rising prices. Setup for Bitcoin and crypto is "less bad" into the weekend = good.
_PS: HOW DOES BITCOIN SPILL OVER INTO EQUITIES?_ These crypto sell-offs have potential impacts on equity and broader markets, for several reasons: - many US crypto holders also own equities (ala Robinhood) - Bitcoin futures are traded by macro funds, hence, drawdowns/limit down moves impact macro markets - Bitcoin has become somewhat loosely connected to the equities, because both are "risk-on" assets -- more apparent these days