Bitcoin & Crypto Consolidate, S&P 500 Big 1st Half, & Options Strategy for Beginners
Crypto wars continue with China’s continued crackdown and now US regulations are looming for cryptocurrency. Regulatory crackdowns and environmental issues continue to plague crypto so for the moment we remain in a consolidation phase. In the stock market, after a big first half, the wolves are circling the wagon expecting reversals to be forthcoming. And finally, for new option traders such as myself I introduce to you an option strategy to help you get your feet wet. Welcome to Money Talk Sundayz.
China’s continued crackdown on Bitcoin mining and transactions continues hover like a dark cloud scaring novice investors, retail investors and more who were late to the party.
BTC traded lower on Friday struggling around the $35K range. As of this taping, BTC is trading around $32K up about $1K from Saturday morning. Some analysts predict continued weakness and charts are showing the same… possibly even more regression.
Also, China’s regulatory crackdown has accelerated the decline in bitcoin’s hashrate over the past month. The hashrate refers to the total combined computational power that is being used to mine and process transactions on the blockchain.
Another dark cloud on the horizon is the potential for tighter monetary policy in the US. You know with all the hacking and ransomware and ransom being paid in BTC, Uncle Sam is finally going to throw his hat in the ring. But don’t get it twisted. The US has its own coin it wants to promote just like China. The USDCoin is pegged to the US dollar and thus America is fiending the a dollar rally which will be another threat to the crypto space.
Bitcoin trading volumes on the LMAX Digital spot exchange have surged over the past year. Because LMAX Digital “facilitates trades for institutions only and already is among the leading bitcoin spot exchanges, this depicts the current institutionalization of the bitcoin market,” according to a report by Arcane Research and LMAX Digital published on Friday. 70% of the 77 institutional investors surveyed by LMAX Digital expect asset managers, funds, and banks to be the most significant contributors to trading volume in the next three years.
The S&P 500 posted one of the best first halves ever in history as June ends. Wall Street strategists, never ones to restrain their enthusiasm when it is warranted, warn that the gains have played out. Short sellers are circling, with wagers against the largest equity exchange-traded fund rising to the highest level this year.
Pushing against the wall of worries are the growing numbers of retail traders who bought the dip during the pandemic bear market and have since become the staunchest allies of this bull market. A week ago, when the S&P 500 dropped more than 1%, retail investors poured a record $2 billion into equities, according to data compiled by Vanda Research.
The fight is on ladies and gentlemen. Let’s get ready to RUMBLE!!!!!!
Finally, here is an option strategy I want to share with you guys. This strategy will allow you to double and triple your money in a week. It’s powerful, cheap and almost always brings you a return. It is the Long Call Condor Spread. It works by choosing a stock that has been trading sideways for a couple weeks and is not really expecting any volatile movement up or down. You go into this strategy betting that the stock will end the week around the same price it started the week. How do you implement the strategy?
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