Hi Everyone,
The world was changing rapidly before COVID-19, but by now we've gone into hyper speed. I think we can all agree that some of the things happening today would have been unthinkable a year ago.
One thing that may have been unthinkable in 2019 was the usage of blockchain technology in U.S. government initiatives. Yet, with the tireless and unwavering efforts of Media Shower, the state of Massachusetts is about to take a significant turn down the blockchain road.
"Blockchain sits at the intersection of finance and technology, just like Massachusetts. This partnership will power our next wave of financial growth and technology jobs," said John Hargrave, CEO of Media Shower and a man that I'm proud to call my friend.
Though he's trying to stay humble on social media, we all know that this is a huge accomplishment for the entire community and for fintech in general.
Hargrave has been advocating the use of blockchain bonds as a way for local governments to raise money to fight the pandemic, and it's now apparent that the right people are listening. The path is set, yet there is still much work to be done.
Zero Retracement
Speaking of set paths, the dynamic we've been seeing lately from the markets is very rare indeed. The narratives that permeate financial media, or "there is no alternative" (TINA) and asset inflation, are growing louder by the day, in an escalating echo chamber crescendo that by now has resulted in unidirectional markets taking place in a way that almost never happens.
Take a look at silver, for example. Over the last month, it has risen by approximately 60%, with only one or two brief shakeouts.
We've been waiting for a retracement in gold for a while, but it just doesn't seem to be materializing. I've personally decided to start trading on this momentum again with high leverage, and thus far, I am seeing favorable results.
Yes, the FOMO has gotten to me, not only from a technical momentum trader perspective, but also from the fundamental side.
If valuations no longer matter, and bonds, which in the past have made up 60% or more of most large portfolios, no longer seem attractive, there's a huge shift of capital that's taking place right now, well beyond what might be felt from a new bout of retail investors with newfound time and pocket change.
Currently, we are closely watching the levels of stimulus and what people are spending it on.
At any rate, even if all the U.S. stimulus had gone straight into tech stocks, gold and silver, the amounts would still pale in comparison to the vast portions of portfolios being allocated away from bonds and into more attractive-looking prospects.
Next Test
I'm not sure anyone was really expecting bitcoin to test $12,000 this soon. Then again, maybe they did. In any case, here we are. Upward momentum has yet again resumed, in line with the zero-retracement dynamic mentioned above.
Personally, I think it would be nice if the bitcoin price would cool down a bit into a more sustainable rally, for example experiencing a bit of a retracement before blasting through $12,000 sometime next week. But judging by the current temperature, I'm not even sure a cooldown period is possible.
Here we can see the test playing out already. Notice the similarity with the silver chart above? The movement started a few weeks later, but so far, only one or two major shakeouts.
