The Taylor Report-Bitcoin vs Gold vs Ethereum (2/7/19)


By Bill Taylor, Contributor/Fintek Capital We compare the price of Bitcoin, Ethereum, & Gold, using the CME Bitcoin Indexes (BRR & BRTI) and the CME Ethereum Indexes (ETH_RR_USD) & (ETH_RTI_USD) for reference. 2//19 Closing Prices:Bitcoin:  $3,363.48 (-$1.30) Ether:  $103.38 (+$1.65) Gold:  $1,310 (-$0-) DJIA:  25,169.53 (-220.77) S&P 500:  2,706.05 (-25.56) Nasdaq Comp:  7,288.35 (-86.93) Trading Summary Notes for Thursday, 2/7/2019

  • Lets give a super big YAWN to BITCOIN, ETH and GOLD today (or all week)
  • So, if the trading/investing world doesn’t seem to want to make the “coins” move,
  • Nothing changes and here’s the same views from the other day    EXCEPTION: GOLD… weakness
  • Going back years (OK, decades) it is always when nobody wants something (stocks, bonds, commodities) that its time to accumulate. Here’s a test question; Would you rather be buying BITCOIN (cryptos) when every media outlet is covering it, your neighbors have opened crypto accounts and BITCOIN $20,000 is “cheap?” OR, when nobody cares?
  • Boy, if you don’t know the answer to that question its back to being a Lyfft driver for you.
  • And BITCOIN boring? How many people worldwide watched yesterday’s U.S. Super Bowl? Now THAT’S boring. But bet you watch again next year
  • What I’m trying to say……this is becoming a long stretched out bottom area for BITCOIN
  • Of course that is echoed in ETHEREUM as well. Wherever BITCOIN goes….ETH follows
  • So, lets just say, $3,400 +/- for BTC and $105 +/_ for ETH is VERY attractive long term
  • So, if these areas hold there will be awakened interest in crypto (soon? later in the year?) and the upside “explosion” will be impressive
  • Meantime, GOLD is showing why the $1,200 area was THE bottom (nah nah, told you so) and a new long term bull market is in place
  • Buying the dips in GOLD is the strategy of 2019. Near term target is $1,400
  • LONG TERM BULLISH ON BITCOIN AND GOLD. NEUTRAL ON ETH (but getting more “interested”)

Current trading positions; LONG BITCOIN AND GOLD

Bill Taylor is Managing Partner at Fintek Capital & a frequent contributor