We’re All Crypto People Now

We’re All Crypto People Now

“No one was talking about how to get rich off of this,” Mr. Kenna said.

Over the past few years, the influx of money-seeking hustlers and useless cultural absurdities have soured him on the broader industry. Too many projects are using blockchain technology when a simple database would suffice, he said, and he’s not a fan of NFT art because it seems like a fad. He’s seen friends from the early days get unfathomably rich and lose touch with reality. He also experienced a staggering loss in 2016, when his identity was stolen and almost all of his accounts were hacked.

Now, even as crypto is booming, 20Mission is only half occupied. When the pandemic hit, its techie residents fled to Austin, Miami and Portland, Ore. On a recent visit, the corridors, painted with brightly colored murals, were quiet. Several giant beanbags and old futons lay in a pile in the co-op’s dusty common room.

Mr. Kenna said he sometimes regretted not trying to make money on 20Mission over the years. It could have given his other businesses, a brewery and Spanish-language school in Colombia, a cushion in the pandemic.

That will soon change. In early May, Mr. Kenna plans to auction off digital tokens that represent ownership in each of his hacker house’s unoccupied rooms. The buyers of the tokens will get 75-year leases with rent of $1 a month. It will be, as far as he knows, the first NFT for housing.

He sees the plan as a way to give more people access to homeownership, still believing — deep down, in spite of all the hype and money — that cryptocurrency can have a positive impact on the world.

He also thinks the auction could have a positive impact on day-to-day life at 20Mission, mitigating some of the messiness that comes with communal living. If the hacker hostel’s residents are financially invested in the future of the community, they might be more likely to do the dishes.

The Crypto Daily – Movers and Shakers – April 25th, 2021

Bitcoin, BTC to USD, fell by 1.91% on Saturday. Following on from a 1.17% decline on Friday, Bitcoin ended the day at $50,161.0.

A mixed start to the day saw Bitcoin rise to an early morning intraday high $51,201.0 before hitting reverse.

Falling short of the first major resistance level at $52,993, Bitcoin fell to a late morning intraday low $48,852.0.

While steering clear of the first major support level at $48,422, Bitcoin fell back through the 23.6% FIB of $50,473.

Finding late morning support, however, Bitcoin broke back through the 23.6% FIB to revisit $51,000 levels before easing back.

A bearish end to the day saw Bitcoin fall back through the 23.6% FIB to end the day at sub-$50,200 levels.

The near-term bullish trend remained intact in spite of the latest reversal. For the bears, Bitcoin would need to slide through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Saturday.

Crypto.com Coin rose by 2.70% to buck the trend on the day.

It was a bearish start for the rest of the majors, however.

Chainlink and Ripple’s XRP slid by 11.06% and by 10.17% respectively to lead the way down.

Binance Coin (-5.68%), Bitcoin Cash SV (-5.21%), Cardano’s ADA (-4.66%), Ethereum (-6.47%), Litecoin (-6.77%), and Polkadot (-8.32%) also struggled.

In the current week, the crypto total market rose to a Monday high $2,100bn before sliding to a Friday low $1,648bn. At the time of writing, the total market cap stood at $1,787.

Bitcoin’s dominance rose to a Tuesday high 54.32% before falling to a Thursday low 50.03%. At the time of writing, Bitcoin’s dominance stood at 52.25%.

This Morning

At the time of writing, Bitcoin was up by 0.15% to $50,238.0. A mixed start to the day saw Bitcoin fall to an early morning low $5,0005.0 before rising to a high $50,273.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Story continues

Polkadot was up by 0.25% at the turn of the day to buck the trend.

It was a bearish start for the rest of the majors, however.

At the time of writing, Crypto.com Coin was down by 3.22% to lead the way down.

For the Bitcoin Day Ahead

Bitcoin would need to avoid the $50,071 pivot to bring the 23.6% FIB of $50,473 and the first major resistance level at $51,291 into play.

Support from the broader market would be needed for Bitcoin to break out from Saturday’s high $51,201.0.

Barring an extended crypto rally, the first major resistance level and Saturday’s high would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $53,000 before any pullback. The second major resistance level sits at $52,420.

Failure to avoid a fall through the $50,071 pivot would bring the first major support level at $48,942 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$47,000 levels. The second major support level at $47,722 should limit the downside.

This article was originally posted on FX Empire

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What two things do electric vehicle (EV) and marijuana stocks have in common? One, both industries became retail-investor darlings last year. Many companies in these sectors became known as “top Reddit stocks” for their prominence on the freewheeling r/WallStreetBets subreddit. Source: TY Lim / Shutterstock.com The second similarity is less obvious: Both were “Top Reddit Stock” bubbles that have burst this year. Regular investors might have missed that the average top-10 stock in each industry is down 60% from its peak. Analysts expect more losses to come. Yet, the Reddit stock bubble is unlike anything we’ve quite seen before. Rather than sending investors panicking, these bubble bursts have spawned more manias in their wake. This week, Dogecoin (CCC:DOGE-USD) briefly became the fifth-largest cryptocurrency despite having no clear ambitions for real-world use; investors who bought $10,000 DOGE in January could have sold out for almost $1 million last week.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Meanwhile, traditional investors have started worrying about missing out. Once off-limit investments like Tesla (NASDAQ:TSLA) and Bitcoin (CCC:BTC-USD) have gone mainstream as institutional investors reach for returns. “Institutions are buying up more bitcoin per month than the ones that are being mined,” said Alessandro Andreotti, an over-the-counter (OTC) Bitcoin broker. “There just isn’t enough for everybody.” Even riskier bets have happened since. 7 Retail Stocks With E-commerce Locked In As Wall Street tries to beat Reddit investors at their own game, they will inadvertently create opportunities for smaller investors to win. That’s because when it comes to investing in bubbles, speed is often the only thing that separates the winners from the losers. Top Reddit Stocks of 2021: One Bubble After Another Tell any longtime Reddit investor that their bubble has just burst, and you can expect a blank stare in response. Top Reddit stocks from GameStop (NYSE:GME) to Marathon Patent Group (NASDAQ:MARA) are still up thousands of percent from early 2020. Ask a Wall Street investor, however, and a different truth emerges. Many of these investors have lost billions from entering late in the game. Tesla stock owners saw $250 billion in value melt away earlier this year. Top investment banks found themselves losing billions after holding the bag on high-beta bets. What happened? The simple explanation is that Wall Street overestimated valuations. In January, Tesla’s $840 billion market capitalization made it as large as the next 10 legacy automakers combined. Viacom (NASDAQ:VIAC) and Discovery (NASDAQ:DISCA) — firms in turnaround mode — had forward price-to-earnings (P/E) ratios that put them in the same league as Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB). High-beta stocks were bound for a correction. There is, however, a deeper fundamental reason. In a quest for immediate returns, slower-moving institutional investors have started mimicking retail-investor appetites for risky bets. A new bubble economy was the only logical outcome. Reaching for Yield, Reddit Style In the world of fixed income, bond traders refer to this risk-seeking behavior as “reaching for yield.” Here’s how it works. In good times, conservative bond buyers will often start inching toward riskier issues in hopes of earning higher yields. That bumps people with average risk tolerances into higher-volatility assets, and so on. It’s a strategy that works marvelously, until it suddenly doesn’t. (The collateralized mortgage obligations of the 2008 financial crisis were among these “reaching for yield” assets.) Today, a similar effect has taken hold in stock investing. As hot money has flowed into the stock market, active funds have seen their styles drift toward the risky. According to data from Thompson Reuters, Tesla now makes up 6% of the Growth Fund of America (MUTF:AGTHX), one of the largest actively managed funds in the world. (In 2019, the fund had just a 0.5% position.) Cathie Wood’s ARK Innovation ETF (NYSEARCA:ARKK) has seen a more extreme shift. Last year, its top-10 holdings had a median price-to-sales-to-growth ratio (a PEG ratio for high-growth companies) of just 0.15. Today, that figure is 0.5. In other words, Ms. Wood’s fund is risking far more money for less growth potential. Collectively, these Wall Street funds have pushed valuations of retail-heavy stocks to unimaginable levels. The total value of firms with price-to-sales ratios greater than 20 now stands at $5.7 trillion, up tenfold from last year. Cryptocurrencies have seen a similar gain. Meanwhile, Main Street investors have moved on from these mainstream bets. Interest in finding “The Next Bitcoin” has never been higher. The strategy has rewarded retail investors handsomely. An investment of $10,000 in Dogecoin back in January 2020 would be worth $1.4 million today. Similar gains in GameStop and other “meme stocks” have turned lucky shareholders into multi-millionaires. The Party Keeps Going The investment game of cat-and-mouse has only gotten faster. Consider Dogecoin. No sooner had #DogeDay ended on Tuesday, than SafeMoon (CCC:SAFEMOON-USD), a one-month-old currency, replaced DOGE as the most searched-for cryptocurrency in the world. The new coin purportedly penalizes sellers with a 10% fee. Other meme coins like Pirate Chain (CCC:ARRR-USD) saw prices triple within days. The late-to-the-party investors once again found themselves holding the bag. Dogecoin prices collapsed from $0.40 to $0.20 just as institutional investors were starting to buy in. It seemed as if Reddit investors were always one step ahead. How Investors Can Profit from Top Reddit Stocks To profit from this new bubble economy, investors need to follow two essential rules: Speed. Investors need to move faster than institutional money to avoid becoming marks themselves. Profit-taking. Even hot stocks will sink back to earth if their intrinsic value remains low. Today’s bubble economy isn’t the first time asset bubbles have formed among broader market optimism. In 2014, investors became fascinated with 3D printing, sending profitless firms like 3D Systems (NYSE:DDD) to multi-billion-dollar valuations. Cryptocurrencies, rare earth metals and Chinese stocks have also seen rises and falls. Asset bubbles, however, are now happening far more frequently. One possible explanation is that many retail investors have learned to take profits from high-flying investments instead of riding them down to zero. The rise of zero-commission options trading on Robinhood has also limited the time horizon investors can take. And social media has made it easier for like-minded investors to swarm in on investments. Regardless of why, regular investors can profit by being one of the first people in the door and then leaving the party before things end. You might not ever sell at the top, but it’s far better than getting stuck with the Wall Street crowd on the way down. Where Do Top Reddit Stocks Go From Here? Last November, veteran auto industry expert Ben Foldy assessed electric vehicle stocks competing with Tesla. “There will be winners. And losers.” Fast forward to today, and the winners have yet to emerge. Several are on bankruptcy’s doorstep. Some drops are warranted; firms like Lordstown (NASDAQ:RIDE) purportedly faked orders for months and hid major accidents from shareholders. Shareholder lawsuits are piling up. But the individual stories mask the more remarkable change that investors have seen in the past 18 months. With the rise of zero-cost investing and social media, quick-thinking retail investors have suddenly found the tools to outsmart Wall Street. If you’re willing to place your wagers, you too can make sense of this fascinating new world. On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article. Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing. Note: Top-10 electric vehicle stocks include Tesla, Churchill Capital (NYSE:CCIV), Lordstown Motors, Nikola (NASDAQ:NKLA), Fisker (NYSE:FSR), Canoo (NASDAQ:GOEV), Nio (NYSE:NIO), LI Auto (NASDAQ:LI), XPeng (NYSE:XPEV) and Workhorse (NASDAQ:WKHS). Top-10 marijuana stocks are Aurora Cannabis (NYSE:ACB), Hexo (NYSE:HEXO), Canopy Growth (NASDAQ:CGC), Cronos (NASDAQ:CRON), Tilray (NASDAQ:TLRY), OGI (NASDAQ:OGI), Aphria (NASDAQ:APHA), Sundial (NASDAQ:SNDL), Medmen (OTCMKTS:MMNFF) and Green Thumb Industries (OTCMKTS:GTBIF). More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post The Top Reddit Stocks (And Dogecoin) Have Created Bubbles. Here’s What to Do Next. appeared first on InvestorPlace.