The Taylor Report-Bitcoin vs Gold vs Ethereum (4/4/19)


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. 4/4/19 Closing Prices:Bitcoin:  $5,019.07 ($-2.08) Ether:  $161.80 (-$7.68) Gold:  $1,293 (+$3.00) DJIA:  26,384.63 (+166.50) S&P 500:  2,879.39 (+5.99) Nasdaq Comp:  7,891.78 (-3.77) Trading Summary Notes for Monday, 4/4/2019

  • By now everyone knows BITCOIN, ETH (all cryptos) have had a giant quick rally with BTC hitting over $5,000 and ETH $170 (thank you, thank you….nice call) and GOLD hit a stiff selling spree
  • Today (Thursday) the morning was soft and later today is seeing some profit taking and overall weakness
  • BUT WHY? Why the big pop and GOLD drop? ITALY. Yes, the Italian connection.
  • In case you missed it, “Italy’s ruling populists have pushed ahead on a bid to seize control of the central bank AND ITS GOLD RESERVES.” Meaning, they, “the ruling party,” would attempt to sell the GOLD and distribute it to the people.
  • Thus, BITCOIN seems to be the new store of value. This is big. With populist movements in other countries on the rise could this happen elsewhere? Just thinking
  • Moving on, what now? Do NOT give up on GOLD. Buying opportunity and support around $1,285-$1,290. Upside target still $1,400
  • BITCOIN profit taking may be in place for a little while. The buyers (and interest) are back. Pullback may be to the $4,300-$4,500 area. Upside (short time) is still $6,500
  • ETH (BTC’s little follower) is a bit more volatile. Late afternoon weakness today says ETH may be heading to the $140+/- area. Like I have said, should BITCOIN get to $6,500 ETH will see $190-$195
  • STAY LONG AND STRONG! The bull is back

Current trading positions; LONG BITCOIN, ETH AND GOLD

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