My opinion on cryptocurrency used to be incredibly bearish if we're talking back in 2017-18 after Bitcoin hit over $19,000. An unregulated market and currency became a hub for black market deals as it could not be tracked. But now my opinion has changed a bit for a few reasons: 'safe-haven' pairs weaken like USD, FOMO, and hype apparently outpaces logic.
Prices came up to a yearly high yesterday to $0.0052, originally at $0.0020 before a massive amount of buyers stepped in. Shortly after, traders clearly took profit, and the price dipped down to $0.0030s. Right now, dogecoin is up over 416% from lows after several TikToks and memes become some of the greatest market analysts in the world. As ridiculous as it sounds, it's comically true.
Audience
Anyone can bash crypto as much as they want, but the price defied all crypto bears. I mean, who doesn't want to be a part of a trade that moves 400% percent in a few days? This largely has to do with audience. Who do you think is making trades like this? It's not billionaire investors or people running hedge funds; they are probably young, speculative investors who want to get rich quick. If you keep up with stocks, you might have seen Hertz stock soar over 100% as the company is facing bankruptcy. With millions of young investors who have incredibly easy access to markets now are seeing an ultra cheap price along with talks about it on social media, it becomes an indicator in itself on what to buy. It's similar to reading 13F filings on institutions to see what stocks they bought last quarter. People often read Warren Buffet's 13Fs to essentially copy what he does. I realized that you can do this in the same way but by using social media platforms like Instagram or TikTok, which leads me into my next point.
FOMO
Fear of missing out is a huge issue now as chasing prices can actually work in these weird market times. We watched as Nikola Motors announced that they will start manufacturing their new pick-up truck and begin sales in the near future. The stock price went from the $30s to peak at $95 before selling off back to the $50s. That means lots of money was poured in the stock even after the shareholders' vote passed the merger, and people were buying in the $60s, all the way up to the $90s. If that's not chasing price then I don't know what is. This is the kind of behavior happening with dogecoin.
Dollar Weakening
When the US took measures to stabilize their economy, trillions of dollars were created to provide funds for the unemployed and businesses as well as the Fed's $7 trillion balance sheet. Other countries did the same strategy of causing inflation to their currency, but none were on this level. Like metals, crypto is another place people might transfer their money into when fiat money begins to hurt.
Fundamentals
As far as fundamentals go, I have none on dogecoin. All I know is that it is a meme that became legit according to the investors that brought it up over 400%. Analysts are still ranking it a buy regardless of the move it just made.
Cryptocurrency as a whole is speculative, but so are investments like Tesla. If you can know where money is flowing, or at least speculate, your trades could end up becoming very profitable. I'm not telling anyone to buy dogecoin, but as crypto progresses, it will become more and more relevant over time. If I'm feeling frisky, I might put some play money into doge for the fun of it. After all, $20 in this crypto is around 6,000 units of dogecoin.
Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.
Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.
A1 Edgefinder
AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.
Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]
This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]
This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.