Bitcoin moves UP the current value of TWO Gold coins in ONE DAY ! what's next?

 

Market Talk

As America and some troubling world events continue on - the major markets float at all time highs. Its like an ocean tide that doesn't retreat but only a few stocks in AI and Nivida (for their chips) capture enough interest (on earnings) to make huge gains from here.

Nividia market cap has surpassed the entire value of the Chinese stock market.

But there is another area - Crypto-  that is suddenly surging higher with astonishing movements in stocks related to Crypto.  The volatility is high with whipsaws in prices and traders can be like a group of fickle jokers - BUT ...

 

There may be some underlying reasons that bitcoin is surging. One is the "halving" event planned in April.  The bitcoin protocol will make it twice as hard to "mine" a share of a bitcoin.   The protocol puzzles that drive the creation of  a bitcoin get more difficult requiring bitcoin miners to ramp up more specialized processors on their racks and requiring them to expand and procure more energy using facilities.

 

As traders and investors watch current events in the country and the world, certain macro-economic trends seem to be playing out. America is being invaded by illegal immigrants from all over the world and our tax dollars are funding unsustainable economic policies. It is possible that such trends could cascade into serious repercussions on the future ways of America.  Add to the notion that confidence in fiat currencies around the world is waning.

 

Let us proceed to stock talk.

Stock Talk

 

As the value of the dollar dwindles, more people are becoming aware of having "perceived' stores of value that may better inflation.  Stores of value such as Gold, silver and another area becoming quite noticeable to both us retail market watchers and big "whales" and institutions alike. This area is "crypto".  The two most prominent crypto's are Bitcoin (BTC) and Ethereum (ETH).  Bitcoin is seen as a store of value by crypto enthusiasts largely because there is finite number of total coins that can be "mined" going forward into the future. The protocol has events called "halving" where it becomes twice as hard for mining computers to solve the crypto puzzles that result in gaining even a fraction of a bitcoin. The more powerful machines the miner has, the bigger the share of bitcoin.

 Trading Notes:

Has anybody noticed that a bitcoin increase exceeded the value of not just one, but TWO ounces of PURE GOLD in just ONE day? ! Some unknown investors, whales and institutions have been putting BILLIONS into both bitcoin (BTC) and Ethereum (ETH).

Due to volatility of bitcoin miners, subject to the whims and foibles of management -  it may be safer or less stomach turmoil to just hold some shares in an etf like IBIT .  However, yesterday traders (and covering shorts ) took bitcoin miners up about 20% in just ONE day.  A previous post lists three bitcoin miners on the watch list.

One caveat on "perception" and stocks is that the market can be a fickle two headed beast -- so take anything with risk in a cautionary "some or none" mode and not "too much" mindset with dry powder for sure.  Anything can happen and it will indeed.

 Watch areas:

IBIT - new Ishares spot bitcoin etf, recently approved.  After "the halving"  or as it approaches in April, theoretically bitcoin could move higher. It remains to be seen about theory vs reality. Update - That was true a week ago. Since then, Bitcoin and Ethereum are taking off. see the byline header.

Crypto Itself : Bitcoin (BTC) and Ethereum (ETH).  watch these as April approaches.  some crypto "gurus" are touting ETH as "Crypto 2.0" and "next gen crypto".  Rumors of some big investors accumulating ETH.  These are also volatile and should be treated with risk awareness.  Bitcoin and ETH are not "stocks" but a form of alternative "store of value" as crypto nerds like to say.  But they can be bought and traded like stocks. Just be aware to keep track for tax reporting loss and gains to Uncle Sam. This does not seem to be something to put it all in - but crypto followers dollar cost average here and there in case the fiat suffers too much in true value. 

Bitcoin miners are presently very volatile.   This is not an endorsement of crypto miners, however there may be a window to try (or not) to "trade" with a small amount of risk money. The one thing to remember is that after April, it becomes twice as difficult to mine bitcoin. That is why the miners are scurrying to buy more mining rigs or "ASIC's"  which stands for Application-Specific integrated circuit miners that use specialized chips.   Some IBIT etf shares here and there may be a way to get involved as a way to take part in bitcoin.

RTX - Raytheon, moving higher since last Jones report. Don't underestimate the huge need for defense in a dangerous world full of threatening adversaries, if not enemies.

INTC - watch Intel chip maker in America. With a large workforce being employed remotely at home, the PC is still an essential part of the game.  Intel also has AI chips in process and made in America investments and funding are making INTC seem undervalued as compared to other chip stocks at this juncture.

METC  - Ramaco Resources - on metallurgical coal, essential for the production of high quality steel. Ramaco is  a REAL miner with impressive earnings and regular dividends that have been increasing. Rare earth discoveries in their Wyoming mine is also a wild card factor.

Oil and Gas industry stocks and ETF's - 

The oil and gas industry is a volatile sector.  It has proponents and opponents. But the world currently needs oil and gas for energy.  The turmoil in the middle east and the threat to shipping  is a reminder of the important role of America's oil and gas reserves.  There are ETFs that manage oil and gas stocks in the energy sector.  This motley article highlights some ETFS.

https://www.fool.com/investing/stock-market/market-sectors/energy/oil-stocks/oil-etf-stocks/

Then there are individual stocks like OXY,  COP and DVN that stocker's  follow.  One small cap oil that is a growth stock with growing assets and earnings in the Permian basin is Vital Energy (VTLE).

The oil industry stocks can be a tough sector to try to trade.  But some stocks seem undervalued.  VTLE, a growth stock with oil well  assets here in America can be a tough one to hold due to volatility.  But watching it pick upward steam makes one wonder if VTLE  is ready to climb back to the 60's. wondering, watching and pondering is a question NOT and answer.  Only the future knows.

I will close by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time.  But trying to look ahead a few months into the future may be a way to do things.  If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor. With all the above caveats and attempted prognostications, I will close this post. 

Stay tuned for more opining on the market and stocks to watch.

___________

ALL in my humble opinion, scroll down and read more.

This site does NOT make Buy / Sell recommendations.
_____________