Monsterra
$MSTR
4 Results
BTC is up 1.7% today, retesting above $31K as crypto markets shrug off last week's negative ETF-related headlines. Most ETF applicants have now refiled to address the SEC's concerns that applications were inadequate without naming exchanges tasked with market surveillance. Equities with high beta to BTC have seen significant gains today. Publicly traded BTC miners Marathon Digital (MARA) are up 10.53%, CleanSpark (CLSK) is up 13.29%, and Terawulf (WULF) gained...
MAPPING POSSIBLE CONTAGION Recently, we have discussed the risk of further drawdowns from the fallout from FTX as the reason for not being too aggressive at these admittedly favorable long-term entry levels. In this week’s note, we wanted to further unpack a few areas of the market where contagion could be lurking. Below is a fascinating graphic compiled by Bloomberg that maps SBF’s exposure throughout the crypto and traditional financial...
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
