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NVDA ~ Long-Term Buyers ZoneNvidia ~ A beast of a company & Leader in the Semi-Conductors and Computer industry NVDA Stock has fallen nearly 60% with the recent market downturn. Nvidia has came to levels now attractive to buyers and is finding some Long-Term Support dating back to TrendLines from Years ago & Previous Resistance Zone in the Fall / Winter of 2020/2021. Though Nvidia had some bad news recently which has pushed it further in to this zone, long term outlook from the company has not changed one bit. As the Price of NVDA falls the value behind the stock only increases, with the p/e falling to near 35. Earnings are continuously growing annually, and this company is a monster in Tech. Long Term outlook here is strong, and the Risk/Reward near these levels are optimal for Long-Term investors. If NVDA Breaks Below its current demand Zone which I expect it to consolidate in, we could see a run down to $100 and then Pre-Pandemic Levels. TTM_Squeeze also indicates bearish momentum fading on the stock. Overall, my thesis for NVDA Long-Term (3-5 years) is strong and bullish for new fresh ATHs.
NASDAQ:NVDALong
by ZachSap
1
Forex & Stocks: Capitalize on BRICS2023Hi Traders, Investors and Speculators of Charts 📈💰 The 15th BRICS summit is being held in South Africa from August 22-24, 2023 and will undoubtedly affect the Forex market. The main reason for this, is the commonly know agenda of BRICS to implement a new reserve currency instead of the USD. More details on that topic here: The 5 Forex markets we'll consider are: FX_IDC:USDINR FX:USDCNH FX_IDC:USDRUB FX_IDC:USDBRL FX:USDZAR As we can clearly see from the charts, from a Cycle / Phase analysis, it is dire time for the USD to correct as we see top outs in basically all of the charts Don't be surprised if it goes UP first, then down (sell the news but in reverse for the BRICS currencies). The summit is being hosted by South Africa, which is the current chair of BRICS. The other members of BRICS are Brazil, Russia, India, and China. The summit is expected to focus on the war in Ukraine, the global economy, and the expansion of BRICS. The theme of the summit is "BRICS and Africa: Intra-BRICS cooperation for sustainable development in Africa". Russia's President Vladimir Putin is not attending the summit in person due to the international arrest warrant issued against him for alleged war crimes in Ukraine. He is being represented by Foreign Minister Sergei Lavrov. The summit is expected to boost investor confidence in the BRICS economies. This is because the summit will provide an opportunity for the BRICS leaders to discuss ways to strengthen their economic cooperation and coordination. This could lead to increased investment in the BRICS economies, which would boost their growth prospects. Top Stocks to consider are: 1. Petrobras (PBR) is the largest oil and gas company in Brazil. NYSE:PBR 2. Sberbank (SBER) is the largest bank in Russia. MOEX:SBER 3. State Bank of India (SBI) is the largest bank in India. BSE:SBIN 4. China Mobile (CHL) is the largest mobile phone company in China. MIL:CHL 5. Tencent (TCEHY) is a Chinese multinational technology conglomerate. OTC:TCEHY 6. Alibaba (BABA) is a Chinese multinational technology conglomerate. NYSE:BABA 7. Vale (VALE) is a Brazilian multinational mining company. NYSE:VALE 8. PetroChina (PTR) is the largest oil and gas company in China. SSE:601857 9. ONGC (ONGC) is the largest oil and gas company in India. NSE:ONGC 10. Infosys (INFY) is an Indian multinational information technology company. NSE:INFY The summit is also expected to lead to a weaker US dollar. This means that the other currencies against the dollar as listed on the 4 charts will strengthen. This is because the BRICS countries are collectively a major source of demand for commodities, such as oil and gold. If the summit leads to increased investment in the BRICS economies, it could lead to higher demand for commodities, which would put upward pressure on commodity prices and the value of currencies of commodity-exporting countries, such as the Brazilian real and the Russian ruble. This would make the US dollar less attractive to investors, which could lead to a weaker dollar. A great way to capitalize on the outcome of BRCIS 2023, is to anticipate and keep an eye out on markets that will potentially be positively affected by this summit. _______________________ 📢 Show us some LOVE 🧡 Follow for daily updates and trade ideas on Crypto , Stocks , Forex and Commodities 💎 We thank you for your support ! CryptoCheck
Short
by CryptoCheck-
44
The Most Important Chart In The WorldOne seemingly unassuming asset holds a tremendous sway over EVERYTHING: yield on the 10-year US Treasury bond. Often referred to as the "risk-free rate," as it rises, a domino effect is set in motion, triggering adjustments in mortgage rates, credit card interest rates, lending rates, and the valuation of growth stocks. That's why I'm saying this is the most important chart in the world. Study it. Chart it. Follow it. For homeowners and prospective buyers, changes in the 10-year Treasury yield can be the difference between an affordable mortgage and a substantial financial burden. This impacts millions of home buyers, banks, and middle parties that handle massive transactions. Credit card interest rates also dance to the tune of the 10-year Treasury yield. Many credit card issuers tie their interest rates to this benchmark, meaning that as the yield climbs, credit card APRs rise as well. This directly affects consumers, who find themselves paying more in interest on existing balances and new purchases. Ooooof! See why the 10-year yield matters so much? There's more... Lending rates, which influence the cost of borrowing for businesses and individuals alike, are tightly connected to the 10-year Treasury yield as. When the yield rises, banks adjust their prime lending rates upwards, making loans more expensive. This can lead to a slowdown in business expansion and capital expenditure as borrowing becomes less attractive. Growth stocks... shall we address the elephant in the room? As the yield on the 10-year Treasury rises, the opportunity cost of investing in riskier assets also rises. Investors may shift their focus towards safer assets like bonds due to the improved yield, causing growth stocks to lose their appeal. The valuation of growth stocks heavily relies on discounted cash flow models, which incorporate the risk-free rate as a discounting factor. A higher risk-free rate can lead to lower valuations, affecting investment decisions. In conclusion, add this asset to your watchlist.
TVC:TNX
by scheplick
6
Bitcoin cycle theory - for my friends to look at in 6 years :)I have created this kind of chart in the past with some assumptions that were not exactly correct because I took into account the unit price of BTC and not the market cap of it. This analysis and prediction is based on logarithmic theory and market cap actualization then divided by units in existence, which basically means the following: BTC marketcap by years: 2013 - 10B 2017 - 100B (reached 250B due to over spike, will not happen again, price per unit should not have been more than $10k) 2021 - 1T (reached 1,17T with price unit of FWB:65K with cca 18M in circulation) 2025 - 10T (2023 data: 19,467,468 BTC in circulation, with cca 0,5M new BTC to be mined in two years taking into consideration halving from 6,25 to 3,125, gives us a baseline) 2029 - 100T Taking into account that in 2025 there will be 20M BTC(more or less), the price point would be exactly at $500k per unit, BUT taking into account that market has grown and that there is a visible slowing down of the pace, skimmed prediction would then be sitting in the $350k region Taking into account that in 2029 there will be 20,5M BTC (more or less), the price point would be at $4,8M per unit, BUT taking into account that market has grown and that there is a visible slowing down of the pace, skimmed prediction would then be sitting in the $2M region Happy Gam(BL)ing!
BITFINEX:BTCUSDLong
by zajebancija
Colony Avalanche Blockchain PlayColony is an altcoin in the avalanche blockchain. The team aims to be a venture capital firm, an index provider, a chain validator and an early stage investment platform. They have 10M in the bank and a decently sized position in avalanche at (i'm guessing) an average price around 15 usd/avax. They have a nice user interface which displays a 0,23 USD/colony as a backing but the marginal price of the token is trading at ~0,06. This could be a good entry point for another crypto atlcoin pump and dump. Get in get out get paid, don't marry digital bytes.
CLong
by TraderItcha
PYUSD - The PayPal StablecoinHi Traders, Investors and Speculators of Charts📈📉 PayPal announced yesterday on August 7, 2023 that it has launched a U.S. dollar stablecoin, called PayPal USD (PYUSD) . PYUSD is fully backed by U.S. dollar deposits and short-term U.S. Treasuries, and is issued by Paxos Trust Company. It is available to PayPal customers in the United States with PayPal Balance accounts. PayPal has partnered with Paxos to launch PYUSD. Paxos is a leading blockchain infrastructure company that specializes in stablecoins. Paxos also issues the BUSD stablecoin, which is used by Binance. PYUSD was first announced in January 2022, but its launch was delayed due to regulatory concerns. However, PayPal has since received approval from the New York State Department of Financial Services to issue PYUSD. PYUSD is currently valued at $1.00 per token. It can be used to buy, sell, hold, and transfer funds on PayPal. It can also be used to make payments to merchants that accept PayPal. PayPal has been crypto-friendly for some time. In addition to PYUSD, PayPal also offers four other cryptos: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. PayPal customers can buy, sell, hold, and transfer these cryptocurrencies on the PayPal platform. PayPal's launch of PYUSD is a significant development in the cryptocurrency space. It is the first major financial technology firm to launch its own stablecoin . PayPal's move is likely to boost the adoption of stablecoins and cryptocurrencies in general. 💭 It's interesting to see how the fundamentals tend to follow the chart or vice versa. When we analyze the PayPal chart, we see a definitive completion of a bearish trend / downward cycle. According to Wyckoff Method and other market phases, the next cycle is the upward cycle / bullish phase. And so, this news comes at just the right time to kickstart a new market cycle! _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck NASDAQ:PYPL
NASDAQ:PYPLLong
by CryptoCheck-
24
Empowering Financially Deprived Female Traders: A Letter of Hope Introduction Dear Fellow Trader, I hope this letter finds you in good health and spirits, despite the challenges you might be facing on your journey as a financially deprived female trader. I want you to know that you are not alone in this struggle, and your determination to navigate the world of trading is truly inspiring. In this letter, I aim to offer you guidance, support, and practical insights to help you overcome the hurdles and seize opportunities in the trading landscape. Acknowledging Your Strength First and foremost, let me commend your courage. Being a female trader in a field traditionally dominated by men is an accomplishment in itself. Your presence challenges stereotypes and contributes to the diversification of the trading world. Embrace your uniqueness and the fresh perspectives you bring to the table. The Power of Education Education is your greatest asset. In a rapidly evolving market, staying updated with the latest trends, tools, and strategies is crucial. Fortunately, the digital age has made education more accessible than ever. Take advantage of online courses, webinars, and educational resources tailored to traders of all experience levels. Knowledge will empower you to make informed decisions and minimize risks. Building a Support Network Surround yourself with like-minded individuals who understand your journey. Join trading communities, both online and offline, where you can exchange ideas, seek advice, and share experiences. A strong support network can provide emotional encouragement, practical insights, and valuable connections that can significantly boost your trading career. Setting Realistic Goals Dream big, but ground your aspirations in reality. Set achievable short-term and long-term goals that reflect your financial situation, risk tolerance, and market knowledge. Tracking your progress against these goals will help you stay focused and motivated, even during challenging times. Mastering Risk Management One of the most critical aspects of trading is managing risk effectively. Protecting your capital should be your top priority. Never invest more than you can afford to lose, and diversify your portfolio to spread risk. Utilize stop-loss orders and position sizing techniques to limit potential losses while allowing room for gains. Leveraging Technology Technology has revolutionized trading, leveling the playing field for traders of all backgrounds. Make use of trading platforms, analytical tools, and algorithms to enhance your decision-making process. Automated trading systems can help execute trades even when you’re not actively monitoring the market. Embracing Resilience Financial markets are inherently volatile, and losses are a part of the game. What sets successful traders apart is their ability to bounce back from setbacks. Develop resilience by learning from your mistakes, analyzing your failures, and adapting your strategies accordingly. Remember that every loss is a lesson that brings you closer to success. Continuous Adaptation Adaptability is key to survival in the trading world. Market conditions change, and strategies that worked before might not be effective today. Stay flexible and open-minded, willing to adjust your approach based on new information and evolving trends. Seeking Mentorship Mentorship can provide invaluable guidance based on the firsthand experiences of seasoned traders. Finding a mentor who understands your challenges and aspirations can accelerate your learning curve and help you avoid common pitfalls. Their insights can be a beacon of light during uncertain times. Navigating Bias and Discrimination Unfortunately, bias and discrimination still persist in the trading world. As a female trader, you might encounter skepticism or condescension from some quarters. Use these experiences as fuel to prove your capabilities. Let your performance speak louder than any prejudices. Conclusion In closing, dear trader, remember that your journey is a testament to your strength, resilience, and determination. The financial struggles you face today do not define your future. With the right knowledge, mindset, and support, you can overcome challenges and achieve success beyond your wildest dreams. Embrace each day as an opportunity to grow, learn, and thrive in the world of trading. Stay focused, stay hungry, and never lose sight of your potential. Sincerely, A Supportive Fellow Trader
PEPPERSTONE:NAS100Education
by lazyluchi
3
Monetary Policy: Fed Funds & UnemploymentThe unemployment rate and the federal funds effective rate are two important economic indicators that provide insights into the health of an economy, but they represent different aspects of economic activity. Unemployment Rate: The unemployment rate is a measure of the percentage of the labor force that is unemployed and actively seeking employment. It is a key indicator of the overall health of the labor market and can provide insights into the level of economic activity. A low unemployment rate is generally considered a positive sign, as it suggests that a larger portion of the labor force is employed and contributing to economic growth. On the other hand, a high unemployment rate can indicate economic distress and underutilization of human resources. Federal Funds Effective Rate: The federal funds effective rate, often referred to as the "federal funds rate," is the interest rate at which depository institutions (such as banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. It is a key tool used by the central bank (in the United States, the Federal Reserve) to influence and control the country's monetary policy. The Federal Reserve sets a target range for the federal funds rate, and it is adjusted as a means to control inflation, stabilize the economy, and influence borrowing and spending by businesses and consumers. Relationship Between the Two: While the unemployment rate and the federal funds effective rate are not directly linked, they can influence each other indirectly through broader economic dynamics: Monetary Policy Influence: The Federal Reserve uses changes in the federal funds rate to impact borrowing costs and, subsequently, economic activity. When the economy is sluggish and unemployment is high, the Fed might lower the federal funds rate to encourage borrowing and spending, which can help stimulate economic growth and job creation. Conversely, if the economy is overheating and inflation is a concern, the Fed might raise the federal funds rate to cool down economic activity and prevent excessive inflation. Economic Conditions: Changes in the federal funds rate can affect overall economic conditions. Lowering the rate can potentially lead to increased borrowing, investment, and spending, which could contribute to job creation and, in turn, reduce the unemployment rate. Conversely, raising the rate can lead to reduced borrowing and spending, potentially impacting job creation and leading to changes in the unemployment rate. In summary, the unemployment rate and the federal funds effective rate are distinct indicators that provide information about different aspects of the economy. While they are not directly correlated, they both play roles in shaping and reflecting the overall economic environment.
FRED:FEDFUNDS
by ZAR_Republic
With the yield curve deeply inverted, what's the bull case?I recently published an idea where I laid out the bear case . But as I said in that post, although there are reasons for caution, I'm not really bearish on this market. In this post, I'll lay out why I do not believe now is the time to go full short. The bear case in review First, let's briefly review the bear case. First, the yield curve is deeply inverted. Historically, the time of greatest risk for stocks occurs as the curve uninverts. The market seems to expect the curve to uninvert over the next year. Second, energy prices and real weekly earnings have been climbing again, which suggests that inflation might not yet be dead. Third, there continue to be significant inflation risks connected to Russia, China, and the record temperatures and ice melt the world has seen this year. And fourth, global liquidity has been falling due to Central Bank balance sheet reduction and interest rate hikes. And on top of all that, stock market valuations are really quite high. S&P 500 P/E is over 25. If I were blindly trading a macroeconomic model, I would probably be all cash or even short the market here. So what could possibly be the bull case, then? 1. We may be on the cusp of the biggest productivity boom the world has ever seen There are several reasons I'm not a bear right now, but the big one is automation and AI. I know, I know; it feels like a bubble! It feels like hype! We get one of these every few years! We just went through one with crypto and NFTs! But listen, I don't do hype. Except the occasional opportunistic scalp, I never bought into the crypto craze. I've never owned Nvidia or Tesla stock. So take me seriously when I say that when Dall-E 2 came out, I immediately recognized this was a different kind of thing. And when ChatGPT came out, I switched careers to work with these tools. I use them every single day, and they have already at least doubled my productivity. In my opinion, the AI field could stop making breakthroughs today, and we'd still see huge productivity gains for the next decade just from adoption of the tools we already have. And the breakthroughs haven't stopped. If anything, they've accelerated. In my opinion, GPT-4 is already something very close to AGI. Its reasoning ability is astounding. Yes, you have to finesse the prompts a little to max out its reasoning ability. Yes, it hallucinates, and yes, OpenAI has nerfed it a little with all their context management and alignment work on the back end. Yes, it's hard to believe that reasoning ability emerges from next-word prediction. But the reasoning ability is undeniable when you see it solve novel problems before your eyes. As I've argued elsewhere, it appears that a "grammar of reasoning" is latent in the grammar of our language, and OpenAI has successfully created a statistical model of at least a portion of this grammar through matrix math. The "BabyAGI" and "AutoGPT" efforts to bootstrap AGI with GPT-4 as an "LLM core" have so far been (mostly) unsuccessful. GPT-4 isn't good enough to get there with this paradigm. But a whole lot of programmers (including me) are working on AI agents that use an alternative "code core" paradigm. And in my opinion, GPT-4 is already powerful enough to get to AGI with this paradigm. It's just a matter of years. My prediction is that we will see AGI this decade. Maybe sooner rather than later. Here's where I go out on a limb. I believe that we are on the cusp of the biggest productivity boom the world has ever seen. It's already started. In a quarter with very high interest rates, we just had a 3.7% productivity gain , smashing economists' expectations. I don't think this will be the technological "singularity" that Kurzweil predicted, with exponential acceleration into an incomprehensible future. I don't think it will put all of humanity out of work overnight. But it's going to big. And it might very well put me out of work overnight, because I am a pure knowledge worker. Let's just say I'm not worried that productivity gains will fall short of my expectations. I'm way more afraid that they will exceed them, and that I'll be out of a job. And if that happens, then the only saving grace will be if I own a piece of the companies and technologies that put me out of work. 2. We've probably already beaten inflation The rest of this post may be a bit of an anticlimax after that diatribe, but let's do it anyway. First of all, in my opinion, we've probably already beaten inflation. On an annualized basis, it's already back at the Fed's 2% target. Yes, energy prices are rising again. That remains a pretty significant inflation risk. And we could also see food prices go up. But we may be on the verge of reversing some other key inflationary trends. For one thing, the corollary of productivity gains is falling labor costs. With the higher-than-expected productivity gain last quarter, we had lower-than-expected unit labor costs (+1.6% vs. +2.5% forecast). This will be especially true for knowledge work. The cost of writing, marketing, and software services is going to plunge in the coming years. Service work and manual labor will become proportionally more valuable, so it's going to be a good decade to be a service worker. But with the labor force participation rate back to pre-pandemic levels, we're probably through the labor market crunch. Next, let's look at shelter. We've had a decade of NIMBY derangement in US housing policy, with hardly any new multifamily housing being built. But the YIMBY movement is starting to change things. Housing supply reform bills have been passed in quite a few US states, including some of the worst offenders like Washington and Colorado. These reforms are already paying dividends for US housing supply. There are almost a million new units of multifamily housing soon to come on the market, and over 500,000 new starts—the highest number since the 1980s. And with US population growth under 1%, there's not going to be a ton of new demand unless we loosen up immigration limits. (Admittedly, the declining marriage rate means you could see growth in the number of households even if there's no population growth, because you have to house more singles.) The payoff is that we should see real slowing or even reversal in inflation of shelter costs. And finally, let's also consider supply chains. 3. We're about to have a US manufacturing boom Another side-effect of AI (combined with dollar weakness and reshoring from China) is that the US is about to experience a manufacturing boom. The charts are genuinely incredible. Highest factory spending since 1981! How often do you see this kind of capital goods investment after huge interest rate hikes? Mind you, most of this is electronics manufacturing, with US companies betting big on chip and GPU demand from crypto and AI. 4. Leading economic indicators look good You probably don't want to bet against the US economy when the GDPNow forecast is at 4.1% and the ECRI Weekly Leading Index looks like this: 5. The credit and labor markets still look okay One reason we've so far avoided a recession despite rising interest rates is that both consumers and S&P 500 firms are in pretty good shape credit-wise. Consumers have relatively little credit card debt relative to their income: Plus, a whole lot of S&P 500 firms took advantage of low interest rates during the pandemic era to lock in a lot of debt at very low interest, so they're in no great immediate danger of having debt roll over at higher interest rates. Having said all that, my analysis of the credit situation could be wrong. Breakages in the financial system often come on unexpectedly. (I suspect, for instance, that consumer credit would look worse if you used the medians rather the means. I haven't done that analysis yet.) It's also significant that, for the moment, continuing jobless claims are trending down, so the labor market looks okay. More than any other indicator, this is the one I'm watching as a recession signal. In particular, if Chris Moody's Ultimate Moving Average-Multi-TimeFrame indicator goes green on the monthly chart, I will consider that a strong signal of recession risk. This has correctly flagged the onset of recession for all recessions since the 1960s, with only one false positive. For the moment, though, we're still okay. How to play it So, there are a number of good reasons to be bullish! But how do we play it? Chase the Nasdaq and buy a lot of megacap tech, right? Right? In my opinion, wrong. At 45 price-to-sales ratio for Nvidia, I'd say AI is already priced in for big tech. With all that semiconductor supply being built in the US, there's about to be a lot of competition in the sector anyway, so Nvidia might actually be a short. Besides, with AI, every company can afford to build proprietary software, so it erodes moats for all the big SaaS companies. Falling R&D costs will allow smaller firms to compete more effectively and build propreitary software. Every sector is the tech sector now. Wouldn't it be something if the biggest gains from AI came in sectors like utilities or food and beverages? I think that's the world we're headed towards. I think you buy the whole US market, and maybe the whole global market, and not just tech. For me, the most difficult thing is to know how much to include fixed income in the mix. Over 4% yield on a 30-year Treasury at a time when I suspect inflation's been beat? That's hard to resist. There may be a case for some kind of return stacking (i.e., leveraged Treasuries) ETF like NTSX. However, note that the Fed won't have a ton of reason to cut rates if growth is as strong as I think, so rates could very easily stay high. And with the yield curve inverted, leveraged strategies are expensive. Leverage costs are set by the short end of the yield curve, so if you leverage long-end Treasuries during a yield curve inversion then you're paying more for leverage than you're getting in yield. So I'm not sure what the right balance or the right use of leverage is, but I do think the traditional 60/40 allocation makes more sense now than it has in many years. This can help smooth out the volatility if we do see some of the recession warning signs play out.
SP:SPXLong
by ChristopherCarrollSmith
6
Bitcoin Miner Moon Race - BMMR - CORZQ Leads the way! The great power of the Bitcoin ecosystem, where is the hash rate coming from? Miners. And most of these miners have bases in Americas only. Most of the Eurasia / South America / Central America (El Salvador Volcano) are not publicly traded yet or direct government related but I suspect this trend is occurring globally. Forget the Moon race, its the Hash Race. All of this too when we are in early stages of a bull market. Don't hear a peep of Bitcoin miners or the ecosystem on Bloomberg either? BlackRock radio silence. . . but the waves are public.
AMEX:BITOLong
by FederalXBT
Aptos Possible Playout ChartMicrosoft and Aptos Labs recently announced a promising partnership in the fields of blockchain and artificial intelligence, making significant strides in advancing technology for beginners to understand. The collaboration aims to support web 3.0 technology, revolutionizing internet usage, and contributes to the development of "Aptos Assistant," an artificial intelligence-powered tool to aid users in various tasks. This partnership holds the potential to reshape our technological interactions by enhancing internet security and efficiency through web 3.0, while also integrating artificial intelligence assistance into our daily lives, exemplifying how large companies are uniting to bring novel technology to our world. The forecast for Aptos' price movement suggests a potential increase due to this sentiment. The target price movement for Aptos could reach $7.72, with a potential profit opportunity of about 6.62%. However, before reaching that level, Aptos needs to consider its resistance level at $7.43. If it successfully breaks through the $7.43 resistance, a movement towards the next resistance level may occur. Currently, Aptos is also positioned above its 100-day moving average, which could be interpreted as a sign of strengthening Aptos' price.
Long
by Cozybanana78
Boom And Bust Cycle of BitcoinGreetings, esteemed members of the @TradingView community and all Vesties out there! The financial markets is a complex and dynamic arena where investors seek to capitalize on opportunities and generate profits. One recurring phenomenon in the financial world is the "boom and bust cycle", characterized by periods of rapid asset price escalation followed by sudden and often dramatic declines. Understanding this cycle is crucial for investors to make informed decisions and navigate market volatility effectively. In this article, we will delve into the life cycle of a bubble within the context of the financial markets, using the Bitcoin price chart as a compelling example. Additionally, we will explore how Bitcoin's circulating supply contributes to its perceived value. The Anatomy of a Bubble: A bubble refers to a speculative phase during which the prices of assets, such as stocks or cryptocurrencies, soar to unsustainable levels fueled by investor euphoria, media hype, and the fear of missing out (FOMO). These bubbles are often followed by a sharp correction or crash, resulting in significant losses for those caught up in the frenzy. The cycle typically consists of four key phases: a) Stealth Phase: Prices begin to rise slowly, driven by fundamental factors or innovative breakthroughs. Initial interest is limited, and only a few astute investors take notice. b) Awareness Phase: Media coverage and public attention increase as prices gain momentum. More investors start to notice the rising prices and may begin to invest, contributing to further price appreciation. c) Mania Phase: FOMO sets in as a growing number of investors rush to buy the asset, driving prices to astronomical heights. Speculative behavior dominates, and valuations become detached from underlying fundamentals. d) Blow-Off Phase: The bubble reaches its peak, and prices begin to plummet as profit-taking and panic selling ensue. The market experiences a rapid decline, erasing gains made during the boom phase. Bitcoin's Boom and Bust Cycle Example: Bitcoin, the pioneering cryptocurrency, has experienced multiple boom-bust cycles since its inception. One particularly notable example is the bubble of 2016-2017-2018 period: a) Stealth Phase: Bitcoin's price had been steadily increasing due to growing interest and adoption within the tech and financial communities. b) Awareness Phase: Media coverage intensified, drawing mainstream attention to the soaring Bitcoin prices. Retail investors started entering the market. c) Mania Phase: The price skyrocketed to nearly $20,000 per Bitcoin, fueled by widespread FOMO. New investors poured money into the market, believing the rally would continue indefinitely. d) Blow-Off Phase: The bubble burst, and Bitcoin's price tumbled, ultimately losing over 80% of its value. Many inexperienced investors who bought at the peak faced substantial losses. The Role of Bitcoin's Circulating Supply: Bitcoin's circulating supply, the total number of coins available for trading in the market, plays a crucial role in shaping its perceived value. The scarcity of Bitcoin is often cited as a driving factor behind its price appreciation. With a fixed supply of 21 million coins, the principle of supply and demand suggests that as demand for Bitcoin increases, its price should rise over time. a) Halving Events: Approximately every four years, Bitcoin undergoes a "halving" event, where the rate at which new Bitcoins are mined is cut in half. This scarcity-inducing mechanism further accentuates the notion of limited supply, potentially driving up prices. b) Investor Perception: Investors often view Bitcoin as a store of value and a hedge against traditional financial markets. As this perception grows, demand for Bitcoin increases, putting upward pressure on its price. Understanding the life cycle of a bubble is essential for investors to make informed decisions and mitigate the risks associated with market volatility. By examining the case of Bitcoin's boom and bust cycle and considering the impact of its circulating supply, we gain valuable insights into how market dynamics and human behavior can shape asset prices. As the financial world continues to evolve, these lessons remain relevant, serving as a reminder of the importance of rational investment strategies and a clear understanding of market fundamentals.
INDEX:BTCUSDEducation
by Vestinda
6
Top Watch Alts💎 FLUX , HOP , SNX & WLDHi Traders, Investors and Speculators of Charts📈📉 I'm constantly on the lookout for projects with great potential. Microcaps often x10, x100 or even x1000 if you're lucky enough to catch them early AND take profits. Today I'll share some projects I'm watching. You'll notice they all currently have great entry points, and are ideal for accumulating. ⭐ FLUX : Flux is a blockchain-based platform that aims to provide decentralized computing services and blockchain-as-a-service solutions. It has its own operating system (FluxOS), wallet (Zelcore), and development program (FluxLabs). FluxOS is a custom-built Linux operating system that is designed to be specifically optimized for running Flux nodes. It is lightweight and efficient, making it ideal for running on a variety of hardware platforms Flux uses a native POW (proof-of-work) coin called FLUX to power its ecosystem. FLUX coin is mined via a proof-of-work (PoW) consensus mechanism and can be staked, bought, sold, and traded. Holding FLUX also enables you to run your own Flux Node on the network, meaning you can earn even more of the coin. Flux is a very promising platform with a lot of potential. It is still under development, but it has already made significant progress. I believe that Flux has the potential to become a major player in the decentralized computing space. ⭐ HOP : Hop is a multi-chain bridge that allows users to transfer assets between different Ethereum Layer 2 (L2) networks and Ethereum mainnet. It is a trustless bridge, which means that users do not need to trust any third party to keep their funds safe. Hop uses a novel approach to bridge liquidity between different networks, which allows for fast and cheap transfers. Hop works by issuing a cross-chain Hop token that can be quickly and economically moved between L2s or claimed on layer-1 for its underlying asset. Automated Market Makers (AMMs) swap between each Hop bridge token and its corresponding Canonical Token on each rollup in order to dynamically price liquidity and incentivize the rebalancing of liquidity across the network. Hop is a valuable tool for users who want to move their assets between different L2 networks or Ethereum mainnet. It is fast, cheap, and trustless, making it a great option for users who want to avoid the high fees and centralized nature of other bridges. ⭐ SNX : Synthetix is a decentralized finance (DeFi) protocol that allows users to mint synthetic assets, which are tokens that track the price of an underlying asset. The underlying assets can be anything from fiat currencies to cryptocurrencies to commodities. Synthetix is built on the Ethereum blockchain and uses the Synthetix Network Token (SNX) as its native token. To mint a synthetic asset, users must deposit SNX into a Synthetix smart contract. The amount of SNX deposited must be at least 750% of the value of the synthetic asset that is being minted. This is to ensure that there is always enough collateral to back the synthetic assets that are in circulation. Once a synthetic asset is minted, it can be traded on the Synthetix decentralized exchange (DEX). The DEX is a permissionless exchange, which means that anyone can trade synthetic assets without having to go through a centralized exchange. Synthetix is a powerful tool for traders who want to gain exposure to a wide variety of assets without having to actually own those assets. It is also a valuable tool for hedging against volatility in the cryptocurrency market. ⭐ WLD : Worldcoin is a cryptocurrency project that aims to distribute free tokens to everyone in the world. The project is led by a team of scientists and engineers who believe that Worldcoin can help to create a more equitable and inclusive financial system. Worldcoin uses a novel approach to distributing tokens called the Orb. The Orb is a handheld device that uses eye scans to verify that users are real people. Once a user's identity has been verified, they are airdropped a small amount of Worldcoin tokens. Worldcoin is a proof-of-stake cryptocurrency, which means that it is more energy-efficient than proof-of-work cryptocurrencies like Bitcoin. It has a total supply of 100 billion tokens and is currently in the process of conducting a pilot program in Kenya. Worldcoin is still in its early stages of development, but it has the potential to be a major player in the cryptocurrency space. The project has a strong team with a proven track record, and it has the backing of a number of high-profile investors. _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
Long
by CryptoCheck-
37
Quantum computing stocks to buyRigetti Computing - pure-play quantum computing business that went public in October 2021 through a SPAC deal. RGTI has partnered with several leading companies and institutions, such as Ampere Computing, Deloitte, NASA, and the U.S. Department of Energy. Rigetti Computing’s financials show robust growth potential, as the company generated $13 million in revenue in 2022, up 46% year-over-year. The quantum computing firm expects increased growth as its quantum projects continue to scale.
NASDAQ:RGTILong
by CAPFINEX
CRV : Time to LET GO of a Sinking DEX?Hi Traders, Investors and Speculators of Charts📈📉 One of the most important lessons you can learn in life is when it's time to let go. This holds true, even for crypto. A recent hack caused a significant amount of damage to Curve Finance. As we thought the price of CRVUSDT couldn't possibly go any lower... CRV, Curve's native token, plummeted and is now nearly falling off my screen. On July 30, Curve Finance was hacked for over $73 million worth of crypto. The hacker exploited a reentrancy vulnerability in Curve's code to drain liquidity from multiple pools. (For Nerds): A reentrancy vulnerability is a type of exploit that occurs when a function calls another function, and the second function calls back to the first function. This can create a situation where the first function can call itself infinitely, which can lead to a denial-of-service attack or a financial exploit. In the case of the Curve Finance hack, the hacker exploited a reentrancy vulnerability in the code for Curve's stablecoin swap function. The swap function allows users to swap one stablecoin for another. The hacker exploited the vulnerability by calling the swap function multiple times, each time withdrawing more liquidity from the pool. This caused the pool to become depleted, and the hacker was able to steal the remaining funds. Reentrancy vulnerabilities are often found in smart contracts. Smart contracts are often used to automate financial transactions, and they are therefore often targets for hackers. The anon hacker has since returned over $61 million worth of the stolen funds, but the remaining $12 million worth of funds is still missing. AS YOU GUYS ALL KNOW, If you've been following me for a while , as soon as I see a > -95% drop in a coin's value WITHOUT a quick recovery... I can't help but lose faith. It's an obvious sign that the demand is lacking, the project has no real interest from the market. I feel sorry for the team; they've been around for a while and it's a well-know project. This hack was really the last thing that they needed. BUT, it happened and unless they can come up with great new way to add value to CRV, I won't be holding any more CRV. _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck CRYPTOCAP:CRV BINANCE:CRVUSDT BINANCE:CRVUSDT.P BINANCE:CRVUSDT.P
Short
by CryptoCheck-
43
❗ WATCH OUT 👎 SCAMS & WORST Crypto's for 2023Hi Traders, Investors and Speculators of Charts📈📉 Many of these projects might come as a shock and be disappointing. As the markets evolved and crypto regulation has taken a more prominent stance; scammers have had to become smarter. The latest trend seems to be a rug pull and then just let the rest of the project's liquidity bleed out. In other words, remain borderline active as they drain more and more funds over a longer time. Hundreds if not thousands of new cryptocurrencies launch monthly. All with big promises of use case, flashing tech and a stock-standard wide mouthed YouTube guy telling you how high it will moon. With these new tokens and coins also comes many initial coin offerings (ICOs) that are often scams. The demand for these have grown, even despite the fact that many people get rugpulled. This mostly unregulated market makes for a perfect place to scam innocent people out of their money, with little consequences to the thieves. When it comes to cryptocurrencies, one of the biggest challenges for investors is not getting caught up in the hype. Digital currencies have quickly risen to prominence in the portfolios of many retail and institutional investors. At the same time, people are still shocked when something like LUNAUSDT / TERRA happens. 📛 C+CHARGE / CCHG USDT 📛 Initially, the fundamentals sounded noble. But after some research, most members of the team are unverified and there has been no real project activity since late 2022. Apart from this, a coin that loses near 100% is ALWAYS a bad sign and indicates a rugpull, more than anything else. 📛 LUNC As seen on the chart / Terra Classic 📛 A noble rescue at first... TerraClassic community continues to create social media buzz based on the idea that brokerages listing LUNC will implement a burn tax that'll reduce the max supply of close to 6.9 trillion tokens. But even burning billions of coins won't have an impact with a max token supply this large. The bigger problem is that TerraClassicUSD has de-pegged and its native coin Terra Classic no longer serves any purpose. With all blockchain work now revolving around the new Terra, Terra Classic and TerraClassicUSD are shell investments, with nothing to back their value. 📛 FTT / FTX Token📛 Why Kukcoin hasn't delisted this is beyond me... Te infamous token of the Sam Bankman Fried saga, more on it here: 📛BURGER / BURGER COIN 📛 . .. REALLY ? 📛 PIZZA 📛 AGAIN, really... 📛 Bitcoin Gold / BTGUSDT 📛 Bitcoin blockchain underwent a fork in 2017 called BTG. Although the fork was meant to produce a more decentralized form of Bitcoin, it has not been successful. BTG was created to address the issue of mining centralization in Bitcoin, but it has not been able to achieve its goal due to the emergence of specialized mining hardware. Just DON'T. DON'T DO IT. Buy the real thing instead. 📛 PITBULL / PIT 📛 I'm letting the dogs out on this one.. That decimal is basically falling off my screen. 📛 BLUR / BLURUSDT 📛 __________________________ 💭 All the above said. Let's discuss a few ways to navigate this wild west market: - Research the team . Perhaps the single most important success factor for any ICO or cryptocurrency is the developers and administrative team behind the project. Check out their Twitter and Reddit. The cryptocurrency space is dominated by major names, with superstar developers like Ethereum ETHUSDT founder Vitalik Buterin capable of making or breaking new projects simply by having their names listed on a development team. For that reason, it's increasingly common for scammers to invent fake founders and biographies for their projects. - Check the whitepaper. The whitepaper should lay out the background, goals, strategy, concerns, and timeline for implementation for any blockchain-related project. Whitepapers can be incredibly revealing: companies that have a flashy website may reveal they lack a fundamentally sound concept. On the other hand, a company with a website containing spelling errors may have a whitepaper that indicates a rock-solid concept and a carefully conceived implementation plan. - It it sounds too good to be true, it probably is. The idea of getting rich quick on an investment in a hot new project sure is tempting. Keep an eye out as you look for new investment opportunities in the ICO and cryptocurrency spaces. Spend time scrutinizing every detail, and assume that the absence of a piece of crucial information may be an attempt to hide an unsound model or concept. Look for outside sources to verify the legitimacy of any project before making an investment. _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck PANCAKESWAP:CCHGUSDT_A8BAB1 BINANCE:LUNCUSDT BINANCE:LUNCBUSD KUCOIN:FTTUSDT BINANCE:BURGERUSDT MEXC:PPIZZAUSDT OKX:BLURUSDT OKX:PITUSDT BYBIT:BTGUSDT
Short
by CryptoCheck-
49