2017 vs. 2020 Bitcoin Bull Run. Will We Reach New Highs? #43

Market Meditations | November 20, 2020

Today, I provide an exclusive edition that answers a crucial question: can we use the past to trade the future? From 2017 crypto bull run to 2020 and from 2008 financial crisis to 2020 recession. What are the similarities, what are the differences and how can you create the best possible trading strategy?

  • CME Bitcoin Futures Cross $1 Billion in Open Interest. CME Group cash-settled bitcoin futures have hit an all-time high with an open interest above $1 billion. The surge in open interest (OI), which is the value of outstanding derivative contracts that are not yet settled, suggest that more money is flowing into the market and traders expect a near-term rise in bitcoin’s volatility. CME launched its bitcoin futures product in December 2017, and it is currently the only regulated cash-settled offering in the U.S. allowing institutional investors to take positions in the nascent cryptocurrency market. Read more.

  • Tesla Shatters Records in Climb to Nasdaq’s Top Performing Spot. Tesla Inc. is wrapping up its biggest week in three months as news that Elon Musk’s electric-vehicle maker will enter the S&P 500 Index next month sparked a global buying frenzy throughout the electric vehicle sector.The rally propelled Tesla shares to a new intraday high of $508.61 on Thursday, and made it the best performing stock this week in the Nasdaq-100 Index. The week’s 21% advance marked the company’s strongest performance since Aug. 21, and pushed its market value to $470 billion.Read more. 

  • Deutsche Bank Says Investors Increasingly Prefer Bitcoin Over Gold as Inflation Hedge. Bitcoin’s narrative as a store of value is strengthening according to an analyst at Germany-based investment bank Deutsche Bank. Jim Reid, managing director and head of global fundamental credit strategy said that “there seems to be an increasing demand to use bitcoin where gold used to be used to hedge dollar risk, inflation, and other things. Bitcoin is up ~150% this year, with gold up 22% YTD. Both assets managed to benefit from the monetary and fiscal policies by central banks and governments around the globe.Read more

  • Top Japanese Banks and Companies to Test Private Digital Currency Next Year. More than 30 major Japanese firms including banks are set to trial a private, digital currency next year to improve payments. Members of the initiative include the top three Japanese banks — MUFG, Sumitomo Mitsui, and Mizuho — as well as several other financial and retail companies. The initiative involves testing a “two-layered digital currency” model featuring the core functionality of blockchain-based digital currency and an area which implements business logic and smart contracts. Read more.

Teddy Cleps: Trading, Building Businesses and Traveling the World with Crypto

How to Get Your Brain to Focus

We have covered the 2017 vs. 2020 bull market comparison today. This was a resource rich article that required the full attention of the reader. The latest research is clear: the state of our attention determines the state of our lives. You cannot be a trader if you are not attentive. You need to be able to devise a clear and coherent trading strategy and you need to be able to focus on multiple things at once. So how do we harness our attention to focus deeper, get distracted less, and even become more creative?