👑 Gold's Throne Challenged by Bitcoin Boom

What’s on the Menu 🍴

Billions of dollars are shifting hands from timeless assets to new technology…

And from value stocks to artificial intelligence hype.

So this week, we’re looking at how capital is flowing, and we dive into a new tool that could help you grow your dough!

Let’s go:

• What To Watch This Week 👀

• Gold's Throne Challenged by Bitcoin Boom 👑

• An Investing Research Tool We’re Loving 🔨

Today’s newsletter is a 4 minute read.

 What To Watch This Week 👀 

Disappointing inflation data in the US last week didn’t stop frenzied trading in stocks and cryptocurrencies.

There was rollercoaster action in many tech stocks including COIN, MARA, LYFT, ROKU, SMCI, NVDA, ADBE, TTD, DBX, and others.

After gapping up nearly every day over the past two weeks, SMCI finally cracked, falling 20% on Friday:

The volatility in semiconductor & AI stocks could continue this week as Nvidia reports quarterly earnings on Wednesday after market close.

Retailers Walmart and Home Depot will also report, giving a read on consumer trends in the past several months.

Bitcoin ETF volumes continued to see net inflows last week, giving further fuel to the crypto bull market:

The macro calendar is light this week, especially in the US, with markets closed on Monday for holiday.

But we’ll keep an eye on ex-US data, where things appear to be improving in countries such as the UK which reported higher retail sales and lower unemployment last week.

Here are the major macro data releases this week:

• Canada inflation (Tues)

• Japan trade balance (Tues)

• German manufacturing (Thurs)

• German business sentiment (Fri)

The Chinese economy also appeared to surge during the New Year festival last week:

So we’ll be keeping a close eye on Chinese stocks this week, as well as the following assets & sectors:

📈 Rising Recently:

• Crypto & Crypto Miners (BTC / ETH / WGMI)

• Energy (XOP / XLE)

• Retail (XRT)

• Chinese stocks (FXI / KWEB)

• Small Caps (IWM)

• Semiconductors (SOXX)

📉 Falling Recently:

• NVDA & SMCI

• US Government Bonds (TLT)

• Precious Metals & Miners (GDX)

• Natural Gas (UNG)

• Regional Banks (KRE)

Gold's Throne Challenged by Bitcoin Boom 👑

For millennia, gold has been the bedrock of value—a testament to its unwavering appeal through the ages.

Its proponents wield the argument of history, a 5,000-year testament to gold's enduring stability.

Yet, we stand at the cusp of an exponential era, where the new outshines the old, and technology redefines the possible.

• From the humble beginnings of oil lamps, we've embraced the brilliance of LED light bulbs.

• The vast oceans, once conquered by the steady pace of sailboats, now bow to the roaring engines of airplanes.

• And in our quest for connection, the quaint charm of pigeon-carried notes has given way to the instantaneity of online communication.

This relentless march of progress beckons a question:

Can the traditional stronghold of gold withstand the digital tide, or will Bitcoin steal the crown as the best form of money in the 21st century?

Let’s dive into the numbers:

• The global market cap of gold is about $13.5 trillion…

• And the current value of all existing bitcoins is only $1 trillion.

But over the past month we’ve seen billions in capital flowing into bitcoin ETFS, while gold ETFs have been losing capital.

Over the past week alone, bitcoin ETFs have added over $3B of inflows…

While gold lost about $750M.

So, some investors are making the argument that bitcoin is eating gold’s lunch, and will soon dethrone gold as the world’s top hard money asset.

To add insult to injury, new bitcoin ETFs are already at about 1/3 the size of gold ETFs (which have been around for about 20 years).

Thanks to the recent jump in price, bitcoin is now the #10 most valuable asset in the world.

Will capital flowing from gold into bitcoin propel the new digital asset to the top of the charts?

One thing is for sure - The journey from fiat's reign back to the bedrock of sound money is underway, with Bitcoin leading the charge.

Its potential to eclipse gold in a digitized tomorrow is not just a possibility but a narrative gaining momentum.

In this digital age treasure hunt, where do you place your bets?

Gold's timeless luster or Bitcoin's boundless horizon?

An Investing Research Tool We’re Loving 🔨

As wealth builders, we’re constantly on the hunt for the next big investing idea.

To help us out, we often use multiple research tools for viewing data and coming to our investing thesis on stocks.

One research tool we use often in our Wealth Building Community is Seeking Alpha.

One of the more useful tools we’ve seen recently is the “In Charts” articles on different stock tickers.

Seeking Alpha basically compiles unique and useful metrics you’d normally have to model out yourself. For example, breaking down different types of company revenues, or even certain margin trends or average revenue per user trends.

They take this data and turn it into easy to view charts.

Sure, you can get general valuation metric data across multiple platforms on the internet. But, if you want to get granular… the “in charts” articles on Seeking Alpha get you there.

Here’s an example on Coinbase (COIN), which recently reported earnings:

What’s unique about this in relation to Coinbase?

You can’t easily get “trading volume” charted on most retail research platforms unless it’s being provided by the company in their earnings releases (and that data may only go back so far). You especially can’t get “trading volumes by type” over time charted easily on most platforms.

You’d have to find someone who has already charted this data themselves, or do it yourself.

So it’s nice that Seeking Alpha has started doing this for many tickers in a place we’re already using everyday for major stock news.

We use Seeking Alpha as a daily driver for:

• Earnings updates and highlights

• Listening to or reading earnings transcripts

• Getting a gauge on investor sentiment

• Getting breaking news alerts on stocks on our watchlists

There’s a lot that we have to monitor as investors in the stock market.

So, any extra tool we can use to get a leg up on the data, is a plus!

Get a 7 day free trial of Seeking Alpha. We think you’ll love it!

Food For Thought 🧠

"Gold is money, everything else is credit.”
- J.P. Morgan

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.