Warming Weather. Heating Economy. Hot for Cryptos.

Hey Influence Traders,

So far, so good this week …

The weather has calmed down.

The stimulus is stimulating.

COVID is being tamed.

But I won't jinx it.

COVID

The vaccine rollout seems to be taming Covid.

The CDC just reported that more than 100 million Covid vaccine doses have been administered.

About 35 million people have been fully vaccinated. That’s roughly 13.5% of the adult U.S. population.

More than 65.9 million people have received at least one shot.

With more than 25% of the population vaccinated, and many more with natural antibodies, we are moving closer towards herd immunity and to the economy opening more quickly.

Economy on Fire

And the economy senses that reopening.

I’ll tell you what’s not calm — the markets!

The DOW and S&P 500 have been swinging for the fences and continue to set record highs.

Tech has weighed on the NASDAQ, but it is still strong.

Volatility is off its highs from earlier in the year, but it is still running above its 5-year average.

It’s a traders’ market!

The Markets are Not the Economy

Everyone knows that the markets are not the sole driver of economic growth.

But with the stimulus and infrastructure bill on the horizon, some economists started the year calling for 4.2% growth.

That 2021 number was raised shortly thereafter by Bank of America to 5%.

I guess the spending is being taken seriously, because Goldman Sachs recently pegged GDP growth at … 7%! 

Dampening Effects?

Yes, some are trying to dampen growth, such as Elizabeth Warren with her wealth tax proposals.

But on the whole, DC seems ready to allow the economy to make a #PowerMove and run hot.

WIth the passage of the $1.9 trillion Coivd relief bill and indications from DC that inflation is not a concern and rates will not be raised, the economy is broiling.

And a spicy economy combined with pending inflation and potentially rising rates are having an impact on an alt sector …

Cryptos Are A Hot Ticket … or Token!

Yes, the major cryptos, Bitcoin (Ticker: BTC) and Ethereum (Ticker: ETH) have had a small pullback to start the week.

That was not surprising after the sprint they had the week before …

But they have since resumed the steady climb they started in December.

After all, BTC is considered the next Gold Reserve, and ETH is the foundational tech on which most cryptos are based.

There will always be a lot of speculation in the land of crypto, particularly with coins other than BTC and ETH.

The big question with BTC is … have we reached the tipping point of moving from speculation to mainstream acceptance.

Many indicators argue … YES.

Power BTC Moves

BTC has had a meteoric rise over the past year, up almost 1,500%.

But it experienced a true #PowerMove in November when it began moving from $14,000 to over $61,000 today.

One BTC is now worth more than a full kilo of gold! Who saw that coming?

Institutional Acceptance

The biggest change with BTC is the shift from it being primarily a retail-focused speculative endeavor to something that looks attractive for institutional investors.

Institutions are searching for yield and alternative assets and are drawn to BTC’s perceived inflation hedging properties.

It is, after all, considered the digital equivalent of gold due to its finite supply.

Institutions also see the advantage of BTC for global payments.

While still years away, its decentralized design, lack of foreign exchange exposure, and secure payment channels could make BTC the currency of choice for international trade.

Yes, transaction costs and speed are negative factors — today — but the opportunities are leading many to believe that BTC is at a tipping point and moving into the mainstream.

This has caused Tesla and other institutional buyers to pour billions into BTC. Elon Musk has gone so far as to state that BTC will be used for all Tesla cash reserves.

Herd Acceptance

BTC was started and supported by individual investors and believers.

On Monday, crypto trading platform LATOKEN experienced downtime, not because of any technical lapse, but because of a 10x influx of new traders! 

Moreover, the mainstream media and crypto message boards are pushing BTC.

Remember, there is no BTC CEO or BTC corporate PR.

Rather, every participant is an advocate.

To me, that is decentralized advertising at its finest.

March Madness Contest

I’m going to continue discussing BTC, ETH and other cryptos in future issues.

There is a lot to talk about and analyze, including how KbStreet is viewing the rise of crypto.

But in the meantime, with March Madness in the air, I want to hear your best guesses of when BTC is going to hit $75,000.

Because that is on the way.

I’ve got a date and time in mind …

If you email me your guess at fgregory@optionpit.com, I’ll let you know my prediction.

Cutting Through the Noise for You.

Frank

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.