Riding The Wave News Summary #8
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News
Table of Contents
Billionaire investor Bill Miller puts 50% of net worth in Bitcoin
Bitcoin Dips Below $40K as ‘Death Cross’ Looms on Price Charts
China Offers Digital Yuan at Olympics to Test Overseas Appeal
IMF Economists Warn of ‘Contagion’ Risk in Increasingly Linked Bitcoin and Stock Markets
Powell Says Fed Report on Crypto and Central Bank Digital Currency Is 'Ready to Go'
Crypto Dead Man’s Switch Sarcophagus Raises $5.47M From VCs via DAO
One Day After Launch, OpenSea Competitor LooksRare Sells Over $100M in NFTs
Kim Kardashian, Floyd Mayweather Sued by Investors in EthereumMax Tokens
Notable Mention, for those looking for a full read: Welcome to the Crypto Version of ‘Blade Runner’
Billionaire investor Bill Miller puts 50% of net worth in Bitcoin
Miller no longer considers himself just a “Bitcoin observer” but rather a real Bitcoin bull, as he said in a WealthTrack interview last Friday.
The billionaire investor now holds 50% of his net worth in Bitcoin and related investments in major industry firms like Michael Saylor’s MicroStrategy and BTC mining firm Stronghold Digital Mining. An early Amazon investor, Miller owns almost 100% of the rest of his portfolio in Amazon, he noted.
Miller bought his first Bitcoin back in 2014 when BTC was trading around $200 and then purchased a “little bit more overtime” when it became $500. The investor did not buy it for years until BTC plummeted to $30,000 after hitting around $66,000 in April 2021, he said.
“This time I started buying it again at $30,000, down from $66,000 and the reasoning was there’s a lot more people using it, there’s a lot more money coming in from the venture capital world,” Miller stated, adding that he bought a “fair amount in the $30,000 range.”
The billionaire investor noted that he looks at Bitcoin as an “insurance policy against a financial catastrophe” as well as a powerful investment tool that has been outstripping gold. He also pointed out Bitcoin’s scarcity, meaning that only 21 million Bitcoin can be created.
While pouring as much as 50% in BTC in related markets, Miller recommended individual investors to put at least 1% of their assets in Bitcoin
I would highly recommend also checking out the below video. Miller gives me the impression of an informed investor who has made a high conviction investment in Bitcoin after doing his due diligence. If you have any friends or family you want to introduce to the crypto space you can also share this video to show it’s becoming less of a fringe asset and more of an asset that billionaires add to their portfolios.
We will also likely see more billionaires jump into crypto to some extent if only to keep pace with the other billionaires that are investing.
Bitcoin Dips Below $40K as ‘Death Cross’ Looms on Price Charts
They call it bitcoin’s “death cross” – a bearish indicator that appears when the 50-day moving average (MA) dips below the 200-day MA.
The ominously named chart pattern looks set to be confirmed this week amid mounting concerns of faster liquidity withdrawal by the U.S. Federal Reserve (Fed), a bearish development for bitcoin and asset prices in general.
On Monday, the bitcoin (BTC) price dipped briefly below $40,000 for the first time since September. As of press time, the largest cryptocurrency by market cap was changing hands at $40,834, based on CoinDesk pricing, down 12% so far in 2022, one of bitcoin’s worst-ever starts to a year.
However, death crosses witnessed last June, late March 2020 and October 2019 were bear traps, or false signals that marked major price bottoms. The consolidation seen after the mid-June death cross resolved in a fresh bull run, as seen in the featured image.
Moving average crossovers are unreliable as standalone indicators, given they are based on backward-looking data and tend to lag prices. The market is often oversold and due for a bounce by the time the crossover is confirmed, as was the case in June last year and late March 2020.
I’m not extremely worried as the majority of indicators I follow are still bullish.
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