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š Gold's Throne Challenged by Bitcoin Boom
Billions of dollars are shifting hands from timeless assets to new technologyā¦
And from value stocks to artificial intelligence hype.
So this week, weāre looking at how capital is flowing, and we dive into a new tool that could help you grow your dough!
Letās go:
What To Watch This Week š
Gold's Throne Challenged by Bitcoin Boom š
An Investing Research Tool Weāre Loving šØ
Todayās newsletter is a 4 minute read.
What To Watch This Week š
Disappointing inflation data in the US last week didnāt 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 weāll 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 weāll be keeping a close eye on Chinese stocks this week, as well as the following assets & sectors:
š Rising Recently:
Crypto & Crypto Miners (BTC / ETH / WGMI)
Energy (XOP / XLE)
Retail (XRT)
Chinese stocks (FXI / KWEB)
Small Caps (IWM)
Semiconductors (SOXX)
š 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 š
For millennia, gold has been the bedrock of valueāa 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?
Letās dive into the numbers:
The global market cap of gold is about $13.5 trillionā¦
And the current value of all existing bitcoins is only $1 trillion.
But over the past month weāve 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 inflowsā¦
While gold lost about $750M.
So, some investors are making the argument that bitcoin is eating goldās lunch, and will soon dethrone gold as the worldās 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 Weāre Loving šØ
As wealth builders, weāre 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 weāve seen recently is the āIn Chartsā articles on different stock tickers.
Seeking Alpha basically compiles unique and useful metrics youād 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 granularā¦ the āin chartsā articles on Seeking Alpha get you there.
Hereās an example on Coinbase (COIN), which recently reported earnings:
Whatās unique about this in relation to Coinbase?
You canāt easily get ātrading volumeā charted on most retail research platforms unless itās being provided by the company in their earnings releases (and that data may only go back so far). You especially canāt get ātrading volumes by typeā over time charted easily on most platforms.
Youād have to find someone who has already charted this data themselves, or do it yourself.
So itās nice that Seeking Alpha has started doing this for many tickers in a place weāre 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
Thereās 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 youāll love it!
Food For Thought š§
"Gold is money, everything else is credit.ā
- J.P. Morgan
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DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We donāt 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.