The Taylor Report-Bitcoin vs Gold vs Ethereum (5/2/19)


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. 5/2/19 Closing Prices:Bitcoin:  $5,373.29 (+$83.62) Ether:  $157.57 (-$1.09) Gold:  $1,271 (-$10.00) DJIA:  26,307.79 (-122.35) S&P 500:  2,917.52 (-6.21) Nasdaq Comp:  8,036.77 (-12.87)Trading Summary Notes for Thursday, 5/2/2019

  • BITCOIN has resumed rally mode having shaken off the late last week possible “misplacement” of $850 million by Bitfinex.
  • With this new solid move higher in BTC, it sure seems like this brand new bull market is in the very early stages. New highs out there in the future?
  • Interesting, ETH did not follow BTC higher today. Is ETH losing steam? Still think if/when BITCOIN gets to our near term target of $6,500, ETH trades at $190-$195.
  • News that TD Ameritrade and ETrade will offer BITCOIN trading to its clients providing a strong underpinning. Institutions and major brokerages are stepping in
  • GOLD “dumped” today (off $10.00) after the U.S. Federal Reserve did not reduce interest rates at yesterday’s meeting. Not surprising. The downward plunge was.
  • The “action” (or lack of) in GOLD is very similar to the price movement in BITCOIN earlier this year. No current interest from long term buyers, short term traders buy GOLD and then dump their trades into a soft market. Overall, more sellers than buyer
  • That will change at some point. Remember, if you think GOLD is “old news” just think MMT (Modern Monetary Theory) and read up on it. Just saying
  • Timing is everything and the USD will weaken (significantly) but when is the big question. Way to many geopolitical risks/events that are being overlooked will also make GOLD explode (?)…..but again, when
  • Long term target for GOLD still $1,400

Current trading positions; LONG BITCOIN, ETH AND GOLD

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