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Bitcoin Market Journal

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HEALTH, WEALTH, AND HAPPINESS

Jan 11, 2022

"Everyone has two natures. One wants us to advance and the other wants to pull us back. The one that we cultivate and concentrate on decides what we are at the end." - Theron Dumont

Paid members: Our new downloadable is here! The Investor Scorecard for Terra (LUNA), one of the fastest-growing blockchain platforms of the last year, is now available. (Download it here.)

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Our analysts rated and reviewed Terra's LUNA token across the five sets of criteria in our Blockchain Investor Scorecard, giving it a final score that you can compare against our other picks.


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Whale Reads



Whale Reads

Coinbase Outperforms Bitcoin (CoinDesk): If you've followed us through last year's Coinbase IPO, you know we're bullish on the company. (Read our guide on How to Invest in Coinbase.)


Coinbase is one of our "block stocks," or traditional stocks that benefit from blockchain. For those who can't invest in crypto directly, investing in block stocks can be a good alternative.


Investor takeaway: While Coinbase's fortunes will likely mirror those of bitcoin, Coinbase has not dipped quite so much in the past weeks, so it may be slightly safer.

Your Money is Growing



Your Money is Growing

Compare the price of bitcoin over the last six months:

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With the price of Coinbase stock (COIN):

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You'll see the two charts are very similar.


Investor takeaway: If you don't have bitcoin in your portfolio, consider adding "block stocks" like Coinbase. (Also, it's available through any online brokerage.)

Mati Greenspan


Block Market Daily

with Mati Greenspan

Hi Everyone,


Risk assets are up today, including stocks and crypto, following testimony that Federal Reserve Chair Jerome Powell provided during a confirmation hearing. 


Should the members of the Senate vote to give him another term, he will retain his position as the key figure at the helm of the great money printer.


It wasn't so much what he said, but how he said it that seems to have put investors at ease. 


His boring presence on the stage, along with his familiar monotonous message that the economy can handle the omicron variant while still gradually reducing quantitative easing and preparing to eventually raise interest rates, helped alleviate their concerns. 


The U.S. central bank finds itself in an incredibly comfortable position right now. On one hand, interest rates are still on the floor and the money printer is still humming, albeit less than it was a few months ago.


At the same time, talking about reducing the stimulus and signaling a future rate hike give them the appearance of having a hawkish monetary policy.

Hawkish not hawkish


This graph, posted earlier today by NorthmanTrader founder Sven Henrich, gives us a great visual of the current status.


The blue line is showing where interest rates are right now, and the red line is showing the total amount of assets on the Fed's balance sheets, assets bought with money created by the central bank for this purpose.


In other words, it was money that was printed out of thin air to prop up the economy.

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When analyzing the Fed, we really need to watch what policy makers do more than what they say.


In this context, it's kind of easy to understand why the market might go up on a day when the Fed chair is talking about reducing QE and raising rates.


It's also important to keep in mind that the markets have declined a lot lately, so they are more than due for an upside correction.

Drop it like it's hot


In response to a question from Sen. Mike Crapo regarding the possibility of a Fed-backed digital currency, our friend J-POW stated today that “the report really is ready to go and I would expect we will drop it — I hate to say it again — in coming weeks."


He further clarified that the report is more of a fact finding request for public opinion than any sort of definitive course of action from the world's most prominent central bank. 


Many people tend to forget that the Fed does not have any unique proprietary secret data that gives them a better perspective or outlook than the private sector.


This is true for monetary policy, but it goes double for technical matters like central bank digital currencies, in which they are clearly behind the curve.


Powell's use of the word "drop," intended as vernacular in place of the word "publish," is an apt metaphor for how the institution is trying to give the impression that they're avant-garde, but instead are just coming off as out of touch.


I can't wait for this long awaited, overhyped report of non-commitment to be released so that we can promptly ignore it.


Many thanks to Snoop Dog, who himself is quite active in the crypto scene, for actually using the term drop appropriately where it belongs, in a rap song ... in 2004.


Have an awesome evening!

Mati Greenspan

Analysis, Advisory, Money Management

Hot Tweet



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We wouldn't be surprised either!

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Bitcoin Market Journal is a daily newsletter focusing on blockchain and crypto investing. It is created by Evamarie Augustine, Charles Bovaird, Mati Greenspan, John Hargrave, and Steve Walters.


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