🎯 Coinbase Targets Millennials Bucking Financial Norms

What’s on the Menu 🍴

Welcome to the last month of the year!

Markets have bounced hard this quarter, and there’s a lot baking this week.

Today we’re taking a deep dive into crypto, stocks, and macro…

Let’s chow down:

•  What To Watch This Week 👀

• Coinbase Targets Millennials Bucking Financial Norms 🎯

• Bitcoin's Boom: Ride or Resist? 📺 

Today’s newsletter is a 4 minute read.

What To Watch This Week 👀

Investors were cheery last week as we kicked off the final month of 2023.

Crypto, stocks, bonds, and even gold ripped higher on optimism over falling yields & inflation.

Almost every sector participated, including small caps and rate sensitive areas like real estate:

Will this “Santa rally” continue?

That could very well depend on the economy nailing the “soft landing”, and one key piece of the puzzle is unemployment.

On that front we’e got two major releases to keep an eye on this week: the JOLTS job opening data on Tuesday and the official November US jobs report on Friday.

Other economic releases this week include:

• US ISM Services (Tues)

• Canada manufacturing PMI (Wed)

• China trade balance (Wed)

• US consumer sentiment (Fri)

• China inflation (Fri)

It’s also a busy week for public company presentations with Microsoft’s Azure + AI conference, Barclays Tech, Media, & Telecom conference, and Morgan Stanley’s retail conference on deck.

We’ll get earnings from a handful of companies including Lululemon, Gamestop, Chewy, Nio, MongoDB, Dollar General, Broadcom, Box, Autozone, Gitlab, Asana, and Chargepoint.

We’ll be keeping an eye on these assets & sectors:

📈 Rising Recently

• Crypto (BTC / ETH)

• Gold & Gold Miners(GLD / GDXJ / GDX)

• Small Cap Stocks (IWM)

• Biotech (XBI)

• Airlines (JETS)

• Retail (XRT)

📉 Falling Recently

• NVDA & Semiconductors (SOXX)

• Energy (XLE / XOP)

Coinbase Targets Millennials Bucking
Financial Norms 🎯

Cryptocurrency is new, and many people still aren’t buying what it is selling.

Coinbase is trying to push adoption forward with an interesting strategy: Tugging on the heartstrings of struggling millennials.

Most people are well aware that the greatest value investors in the world, Warren Buffett and Charlie Munger are anti-Cryptocurrency.

In fact, many people follow suit and avoid crypto simply because these great investors did:

But, this could end up being a huge strategy mistake as we have to realize that Warren Buffett and Charlie Munger were more likely to invest in Coca-Cola over Amazon.

In fact, Buffett himself has admitted this:

Coinbase, which is the leading cryptocurrency exchange, knows that the “old way of doing things” is dying. Or, at least they’re trying to convince people of this.

Their latest ad got some attention on X (Formerly Twitter), when it pulled at the heartstrings of millennial struggles. Coinbase is essentially trying to position cryptocurrency as “a new way of doing things” that is better and will allow for more prosperity.

The ad plays on the “social norms” we’ve been spoon fed like:

“A system with numbers and papers” ”You work hard, get good grades, go to college” ”Debt is so good”

Then, the ad cuts to a stressed out millennial saying unconvincingly “I can totally save up and buy and house… and start a family”… then, the millennial looks to be sitting with a financial planner who goes on to tell her that ”Starting a family means you need 2-3 jobs”.

The ad continues on touching on things like expensive rent, expensive cars and more.

Then in an uplifting shift, the point is proven that there is a better way with less paperwork and bureaucracy that puts permissionless power in the hands of the people.

It’s truly a brilliant ad, and it shows WHY younger generations are simply more likely to adopt cryptocurrencies like Bitcoin.

This seems to be exactly why Bitcoin’s price continues to truck higher and the currency refuses to die: people want another way of doing things, and they see that in Bitcoin.

It seems like the crypto adoption train is truly only getting started and it’s the younger generations way of bucking the system as it is…and it’s fascinating to watch.

Bitcoin's Boom: Ride or Resist? 📺 

As a Bitcoin trader, investor, and educator, I often confront the crucial decision of whether to follow the herd or go against the grain in market trends.

This dilemma is central to my latest video, "Bitcoin's Boom: Ride or Resist?"

When To Trade Against The Herd

In my experience, understanding when to align with or counter the market trend is vital.

Reflecting on Bitcoin's historical shifts, such as the 2013 surge and the 2017 peak, I've observed that extreme market sentiments, like euphoria or capitulation, can signal strategic opportunities for counter-trading.

But these moments are rare, occurring perhaps once a year.

Insights from Market Cycles

I've learned that grasping the nuances of market cycles is key to informed investment strategies.

Analyzing past cycles, including the impact of the 2020 COVID-19 market panic, has taught me to recognize when to trade with the herd during robust bull trends and when to adopt a counter-trading approach during market extremes.

Utilizing Fundamental On-Chain Indicators

In today’s video, I discuss how tools like Glassnode, which offer on-chain data, are powerful for diving into fundamental data.

These indicators, such as the MVRV Z-Score, have proven profitable in identifying prime buying and selling times.

Current Trends and Market Correlations

The current interplay between Bitcoin and the stock markets is something I've been closely monitoring.

This correlation has become increasingly significant during times of correlation between stocks, bitcoin, and altcoins.

I caution investors about the inherent risks and advocate for a more conservative approach compared to Bitcoin.

Key Lessons for Investors

• Strategic Timing: It's about knowing the right time to trade with the herd or against it, based on the market cycle.

• Awareness of Market Cycles: Being aware of the market phase is crucial for decision-making.

• Leveraging On-Chain Analysis: On-chain tools like Glassnode can provide essential market insights.

• Understanding Macro Correlations: The relationship between Bitcoin and broader financial markets can't be ignored.

• Managing Risks: A cautious approach to altcoins, with a focus on Bitcoin, is vital for risk mitigation.

Wrapping Up

There are some incredible opportunities available in today's investing landscape - Shaped by digital advancements like the internet, cryptocurrencies, and AI.

I encourage investors to stay adaptive, informed, and ready to capitalize on the opportunities this unique era presents.

Food For Thought 🧠

"Complexity is your enemy. Any fool can make something complicated.
It is hard to keep things simple.”
- Richard Branson

DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.