Bitcoin and Etherium Soar! Is it time to take profits?
New Cryptos we like!!! Updates on Humanoid Robotics opportunities.
🚀Dear Valued Subscribers,
Welcome to another exciting week filled with compelling topics and investment insights. In this newsletter, we're delving into key areas that have been making waves in various markets. Here's a sneak peek into the topics we'll be exploring:
Ethereum Soars Through $3,000!
Reasons Why Institutions are Adopting Bitcoin!
ChatGPT Reveals Astonishing Content From Their Generative Video Tool ‘SORA’
Is It Time To Take Profits On Stocks?
So folks, strap in as we have a lot to cover as we dive into the materials for this week's newsletter!
Ethereum Soars Above $3,000 For The First Time Since April of 22’
With swirls of an Ethereum ETF being approved as early as May of 2024, the ETH price has started moving in anticipation of this major announcement. Just as we saw the price of Bitcoin climb prior to its ETF being approved, it is very similar to what we’re seeing for Ethereum now.
Even though Bitcoin has still been climbing, Ethereum has significantly outperformed Bitcoin over the last couple weeks. In fact, ETH is up about 15% against Bitcoin at the time of writing… Wow $3500 is in our view today!!!!!!!
Here are two of the main reasons why this could be the case:
Speculation of an ETH ETF being approved in may could have investors front-running this decision. Many investors who were on the sidelines for Bitcoin’s ETF approval announcement may be making sure that they take proper action this time. As a result, a flood of funds may be pouring into this asset now.
Altcoin Season: Normally towards the end of a major move for Bitcoin, profits get taken by larger investors and cycled into altcoins. ETH is normally the first crypto asset that Bitcoin profits get allocated to. The fact that bitcoin has been fairly stagnant in the last couple of weeks while ETH has been pumping suggests that a shift into altcoins may be happening right now. This is something that I am going to continue to monitor, as it also means that a short term top may be looming for the crypto market.
As this situation continues to develop, I will continue to provide timely updates and insights on what I’m seeing, so be sure to continue following the newsletter for weekly updates on this topic! As for strategy, I would continue to recommend a Dollar Cost Averaging (DCA) strategy on any major pullbacks, as this crypto asset is priming itself for a MAJOR run in this bull market!
The Reasons Why Major Institutions Are Flooding Funds Into Bitcoin Now…
Bitcoin has been making waves lately, especially among big-shot investors. So, what's driving this sudden interest from the suits? Let's break it down in simpler terms.
Protecting Against the Money Printer: With all the cash that has been pumped into the economy in the last couple of years, investors are worried about their money losing value. Bitcoin offers a way to protect against this by having a limited supply. Unlike regular money, which can be printed endlessly, there will only ever be 21 million Bitcoins, making it less prone to inflation. Institutions understand this, and the public MUST take notice or else they will be left behind.
Bitcoin Is Mainstream Now: Once considered a geeky experiment, or even a ‘scam’ Bitcoin is now seen as a legit investment. Big financial players such as Black Rock are starting to flood funds into crypto, as the SEC has essentially given crypto the green light with their approval of the spot Bitcoin ETFs. Innovation around the underlying technology is at an all time high, and these numbers will continue to climb as more money floods into this space.
Better Infrastructure and Rules: Using Bitcoin used to be a bit like the Wild West, but things have changed. Now, there are better systems in place to keep it safe and legal. Plus, governments are starting to lay down some rules, which helps ease concerns for big investors. Crypto also used to be extremely difficult to buy, store, and secure, but with advancements in the technology over the past few years, it has been much easier for your average investor to adopt. Institutions see this, and probably realize that there’s no stopping its adoption.
In a nutshell, big investors are hopping on the Bitcoin train because they see it as a smart move. It's not without its risks, but they think the potential rewards are worth it. So, don't be surprised if you hear more and more about Bitcoin in the coming months… From having been in this space for over a decade now, I have seen how many strides this technology has made into becoming mainstream, and I truly believe that it’s an unstoppable force that will continue to emerge as time progresses.
OpenAI’s Generative Video Tool ‘SORA’ Debuts Its First Collection… People Can’t Believe How Realistic The Videos Are…
What Is Sora?
On February 15th of 2024, OpenAI revealed its first round of demos to the public for their Generative Video tool ‘SORA.’ The word ‘SORA’ means ‘sky’ in Japanese, and is supposed to represent the limitless creative potential that this tool offers from its innate editing abilities. Upon its release, people couldn’t believe how realistic the videos were, and the public went into a frenzy speculating that this would be “the end” of Hollywood.
While there is certainly cause for speculation on how this technology could disrupt many industries, such as the filmmaking industry, I would tell people to slow their rolls!
While the demos revealed GREAT promise, OpenAI still has yet to provide a release date for the SORA technology. In other words, this technology is not available to the public yet, and this may be for good reason. While the technology from an editing standpoint seems more than ready to go, there are important concerns that must be addressed before the public is able to utilize this tool, such as security. When asked why there isn’t a release date yet, internal members from the OpenAI team have commented that they are still working out key features such as security precautions.
Security for an AI video generator…Why?
The video generator is SO advanced, that it can be used maliciously to spread misinformation, hateful content, and bias by unethical users. For this reason, OpenAI is taking their time with the release of this product to the public, as they want to ensure the technology is guarded from unethical use cases. Ways in which they are doing this by implementing metadata tags within the generated videos that label it as “made by AI” as well as text classifiers that will scan the prompts to ensure that they don’t violate the usage policies.
I am not personally expecting it to become available to the public until the safety precautions have been taken. However, Once this tool becomes available to the public, it’s going to be one of the most disruptive technologies we have seen, and I can’t wait to get my hands on it to see what I can make with it!
Is It Time To Take Profits On Stock Holdings?
When it comes to taking profits, retail investors constantly have the internal debate of how to go about doing so. To really be able to make this decision you have to understand where stock prices are relative to their overall cycle. Let's put this into perspective by looking at two charts side by side: The S&P 500 and Nvidia…
To the left is the SPX and to the right is NVDA. As you can see, both charts are currently at all time highs, and have gone up in a fairly straight manner since October of 2022. If you had bought NVDA in 2022, your investment would be up more than 6 times what you put in. For the SPX, you’d be up 45% which would be far greater than most people would expect when getting in that position a little over a year ago.
The point here is that anything that goes straight up, will have larger corrections when the time comes. I’m not saying that NVDA and SPX have put in their highs. What I am saying is that these stocks are both at all-time highs, and look to be overbought in the present moment. I always preach the concept of “taking some off the top,” which is a simple way of saying TAKE SOME PROFITS along the way to protect yourself from larger sell-offs. To me, both of these charts look extremely overbought, and need to cool down over the coming weeks or months.
While it might not seem like anyone wants to sell right now, it just takes one larger domino to sell to put fear into the market. As opposed to FOMO selling when the rest of the market is reacting, we can prepare for a short term pullback by taking a little bit off the top now. Remember, we can always add back the profits at a good DCA level on a pull back.
This of course is NOT financial advice, but is an example of how I assess my profit taking strategies. I never want to fall victim to wishing I had taken profits, so by taking a little off the top when charts have run this much, I am able to lock in profits and move forward with a clear mind!
Cryptos on the List that are Crushing this week:
Injective: Up 25%
Superverse: Up 25%
Verasity: Up 40%
New coins we are excited about:
Orange: ORNJ
Stacks: STX
OrdiSwap: ORDS
So what a week so far! Great movement in the crypto space, stock are flying high and it appears that a recession in no longer in clear view. Lets keep crushing in 2024 and beyond.