Buy Low Sell High

There are four magic words that are the only way to make money in the financial markets.

Buy low, sell high.

Unfortunately, many investors especially those who are new in the market have a tendency to enter when markets are ‘hot’ and exit when they’re not.

That said, there’s been a lot of chatter lately about how institutional investors may be using this dip in crypto prices as an opportunity to buy in cheap. Of course, it would be very difficult to prove but this theory really rings true for me.

If Bitcoin was worth $20,000 in December how are so many analysts bearish at $3,700? Especially as there have been no fundamental changes to the landscape in that time.

The question then comes, if large players are accumulating, why are prices dropping?

For experts in the market, it’s actually much easier than it might seem to be on the buy side without affecting prices. As I stated before, this is a buyers market. Here’s a current example of a whale who is currently accumulating massive amounts of Basic Attention Tokens (BAT)  on the down-low.

In any case, increased volumes over the last two weeks in the bitcoin future on the CBOE and CME exchanges suggest that the futures market on Wall Street are participating in the volatility.

Still, the volumes in the futures contracts are still only a fraction of the market. However, on November 20th they peaked at 87,278 BTC, which is about 8% of the volumes recorded on the crypto exchanges.

All this really tells us is that they’re trading more when prices are moving and we’ve seen that before. Whether they’re secretly accumulating through OTC deals and using the futures to hedge remains to be seen.

Traditional Markets

Stock markets are up today and managing to stay afloat after yesterday’s rally, despite some negative sentiment surrounding recent statements from Donald Trump. In an interview with the Wall Street Journal the US President, among other things, suggested that he could add a 10% tariff on iPhones coming from China and that the US consumer could bear it.


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