Lessons: Delphi Digital Bitcoin Bull Case #51

Market Meditations | December 9, 2020

If you’re serious about trading and investing, consider joining our premium community and gaining access to the full range of insights and analysis 3x a week.

When Delphi Digital puts out content, it’s time to take a seat and absorb. Recent publication is “The Bitcoin Bull Case: 2021 & Beyond”. In today’s exclusive newsletter, we summarise 31 pages of analysis, help you get to grips with the technical components and draw your attention to what we deem to be the key takeaways. If you want to start 2021 with the best bitcoin trading strategy, you don’t want to miss this one.

  • France Is on the Verge of Imposing Mandatory KYC Rules for All Crypto Transactions. France is set to bring new and strict measures to the crypto sector according to The Block. Simon Polrot, president of French crypto association ADAN said that the finance ministry is expected to harden know-your-customer (KYC) rules for crypto firms while also regulating crypto-to-crypto exchanges. Sources told the block that the recent terrorist attacks on France were the main reason for the proposed stricter measures. If the proposed changes go through, all all crypto transactions worth more than €0 will have to go through full KYC processes, which is a lot stricter than the present €1,000 limit that only applies to crypto-to-fiat transactions.Read more.

  • Citi Downgrades Microstrategy Stock to ‘Sell’ Citing Lack of Confidence in Bitcoin Moves Among Management. Analysts at Citigroup, a U.S. multinational investment bank, say clients should sell their MicroStrategy stocks due to uncertainty regarding a series of bitcoin-related announcements this year. The downgrade happened a day after MicroStrategy said it would double down on its recent bitcoin buys by issuing debt in order to buy even more bitcoin. The Block obtained Citi’s note to client saying that MicroStrategy’s stock was “overextended” and described the firm’s recent plans as “aggressive” and possibly a “deal-breaker for software investors.” Read more.

  • Bridgewater’s Ray Dalio Softens Stance on Bitcoin, Says It Has Place in Investors’ Portfolios. Ray Dalio, the founder of the world’s largest hedge fund Bridgewater Associates, had indicated that he changed his mind on bitcoin, shortly after criticizing it on Yahoo Finance earlier this year. During a Reddit Ask Me Anything (AMA) on Tuesday, Dalio wrote that bitcoin and other cryptocurrencies have “established themselves” and were interesting “gold-like asset alternatives” that could “serve as a diversifier to gold and other such storehold of wealth assets.” Dalio said that he still has a strong preference for gold over bitcoin because it’s the asset that “central banks are going to want to hold and exchange value in when they are trying to transact.” Read more.

  • Crypto Exchange Lists Airbnb Derivative Contract Ahead of IPO. Crypto traders can now gain exposure to Airbnb through a pre-IPO derivatives contract directly on FXT. This comes ahead of the highly anticipated IPO tomorrow. Many are watching this IPO to also get a sense for the wellbeing of the travel industry. The performance of the pre-IPO product is linked to the market cap of Airbnb at the end of its first trading day. A nice opportunity to try something different here. FTX says these derivatives contracts “will automatically roll over to Fractional Stocks contracts” after the end of the first public trading day. Read more.

  • Stocks Drop Amid Stimulus Gridlock as Virus Surges. Following on from an ATH, stocks dropped today on concern over diminishing prospects for fresh stimulus amid resurgent coronavirus cases. The S&P 500 erased gains after Senate Majority Leader Mitch McConnell said Democrats “poured cold water” on his offer to set aside some issues in an aid bill and rebuffed Treasury Secretary Steven Mnuchin’s $916 billion proposal. Most major groups in the benchmark gauge retreated, led by real-estate, utility and financial companies. The Nasdaq 100 underperformed after a 10-day rally. The dollar rebounded, while bonds remained lower. Oil reversed its advance after a government report showed stockpiles growing the most since April. Read more.

#30 The Crypto Monk: Playing the Long Game and How Crypto Completely Changed His Life

Unlock this section for early access.

The Crypto Monk is a cryptocurrency trader, investor and entrepreneur. He is the…

Your Guide To Trading Breakouts

Trading breakouts is a somewhat aggressive strategy. That being said, it can be very fruitful. You just need to make sure you have a good enough understanding of whether it is a false break and whether you have put in the appropriate orders both to get into the trade at the prices you want and to be able to cover your risk. That’s what we will discuss in today’s ‘Education’ segment, which is devoted to making you a better, smarter and savvier trader.

Disclaimer: The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. I am not a financial advisor. Every investment and trading move involves risk. Do your own research when making a decision.