This weekend as you enjoy the Labor Day holiday, I would suggest perusing what cryptocurrencies are ‘on-sale’.
Chinese regulators came out this weekend outlawing ICOs, sending the crypto market plummeting. This is on the heels of a huge run up with Bitcoin, Ethereum, Litecoin and many others nearing or exceeding all time highs just days before.
In my opinion, this won’t have more than the knee-jerk effect we’ve seen today.
It always amazes me how these big announcements (in really any market) have an odd tendency to align with technicals. Take a look at this short video on Bitcoin and Ethereum:
In the back of my mind is the stirring uncertainty with North Korea, with yet another nuclear test over the weekend. When this type of news hits headlines, the markets typically use Gold and Bonds as a flight to quality. With Bitcoin and other cryptocurrencies being called ‘Digital Gold’, it begs the question, “Will Bitcoin be the beneficiary of fear in stocks?” Time will certainly tell, but in my opinion, the answer is most definitely “YES!”
With only 4 days into a month that has been historically brutal to bulls and kind to bears, it leads me to think we won’t have to wait too long before we find out. So grab some popcorn, because I have a feeling that the short week ahead will be packed with headlines of Bitcoin, bombs…and Brady.