Cryptocurrencies

Japanese Nasdaq whale pays for google, Facebook and Bitcoin (BTC) – Cryptocurrencies

BTC / USD is back on the $ 10,000 magnet. The decline of Wall Street is rocking Bitcoin (BTC), the queen of cryptocurrency whose fate unfortunately still seems to be in solidarity with the stock market ponzi … So what should be planned for the weeks to come?


The NASDAQ whale

Banks are drowning in liquidity. The prices no longer reflect a reasonable optimum such as a bubble level naturally balancing with the terrestrial benchmark. Banks speculate and pour a sea of ​​money towards a few multinationals (which can easily influence the outcome of the US election …).

The Financial Times and the Wall Street Journal report that Softbank is behind much of the recent delirious rise in GAFAM. By the way, the Japanese conglomerate is not a bank per se, but in Japan there is an extremely fine line between a conglomerate (Keiretsu) and “its” bank. The latter is, in our case, the third largest bank in the country: Mizuho Financial Group.

Softbank controls companies such asAli Baba, Wework or Boston Dynamics. The Tokyo giant is capable of manufacturing semiconductors as well as robots and even artificial intelligence.

GaFam

According to the FT, SoftBank fueled the rise in securities such as You’re here, Apple, Microsoft and, above all, Google and Facebook, by tens of billions. ” Mostly »Because we are in an election period… #Cambridge_analytica

And it should be remembered, all this speculation is obviously allowed thanks to the central banks which, by buying the debts of the States, flood the banks with liquidity. For example, the Balance Sheet of the Central Bank of Japan represents 132% of GDP (against 61% for the ECB and 36% for the FED). That’s a lot of money not knowing where to go except in the stock market casino. Where he will come to enrich a handful of multibillionaires ready to tip the scales on one side or the other …

Bloomberg just reported that 500 richest people in the world increased their wealth by about 870 billion since the beginning of the year (therefore before the stock market drop linked to containment) …

Electoral Casino

The printing press increasingly exacerbates price volatility. Investors tell themselves on Monday that central banks will always be there to print trillions. Before remembering Wednesday that trees do not rise to the sky. A vicious circle very conducive to the irrationality of markets

NASDAQ

Indeed, who today can justify the considerable gap between GAFAM’s income and their ubiquitous stock market valuations? Do you realize that the PE (Price earning ratio) of YOU’RE HERE, which is the most important metric for estimating a stock market value, is greater than 1000… This ratio (Tesla price / annual dividend) means that‘You have to invest $ 1000 to earn a dollar after a year

If your savings account brought in that much, that would amount to receiving a rate of remuneration of 0.1%. Not terrible … In other words, investors no longer make money on dividends but on a Ponzi scheme fueled by central banks

In short, all this to say that there may be a reason behind the phenomenal rise of technological acolyths that are Google and Facebook ? Why would a Japanese give so much money to internet giants within months of the US election?

Bribe

SoftBank would have closed 70% of its positions, which can explain in good part the recent Wall Street correction which seems to want to take Bitcoin in its wake … But that does not mean that SoftBank has completely stopped courting US emperor makers… Or that the markets are on the verge of collapse.

Keep in mind that the US elections will take place in less than two months now. Trump controls the Fed and it is difficult to see why it would risk his “reputation” by upsetting the markets just before a presidential election.

Besides the famous ” second wave “Did not materialize nowhere in the world. This is quite logical since it has never happened in history that infected people, but asymptomatic, are at the origin of a real epidemic (with deaths). But the disappearance of the specter of a new confinement is a powerful stabilizer for the stock market.

Dead UK covid

So it’s towards the American election that we have to turn to try to make predictions about the next evolution of the stock market. According to the polls, Donald Trump is catching up. To watch closely.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Our Best Days Still Lie Ahead

Since 1936, the US stock market (S&P 500) rose on average by 10.2% during election years against only 5.8% for other years. Still on average, the stock market tends to retreat a bit during the two months preceding the elections, before rising sharply.

But this is only an average and better not to trust it blindly. You have to think about the consequences of electing one or the other.

Yes Joe biden wins the American presidential elections, it should be noted that the very influential Alexandria ocasio-cortez (member of the Democratic Party) is determined tax income over $ 10 million at a rate of 70%. In other words, it is not entirely certain that this will be very bullish for the stock market …

This is not the official position of the Democratic establishment, but there are still plans to hike the corporate tax rate from 21% (up from 35% before Trump’s arrival) to 28%. This means less dividends, which is not really bullish for the stock market.

That said, Big Pharma should do well since the Democrats want to reintroduce ObamaCare. A big cake for the pharmaceutical companies with a vested interest in getting Obama’s former vice president elected over Trump….

Keep America Great

Trump said he wanted to be judged on the performance of the stock market … It is therefore difficult to see why the stock market would not welcome the re-election of the one who cut the pockets of the FED (who was initially more in favor of raising rates in mid-term …) to ignite stock market shares.

Now let’s come to the main course by noting that the boss of SoftBank, Mr Masayoshi Son, the “Bill Gates of Japan”, is a good friend of Trump …

Trump grateful with Masayoshi Son
Masayoshi son and Trump

The timing of the rise in stock prices of technology companies, in particular FACEBOOK, is not trivial. Is this a bribe to buy Zuckerberg’s complacency? Him, who has already helped Trump get elected once … #Cambridge_Analytica

And then let’s not forget that Trump is leading a fierce trade war against China. The Land of the Rising Sun has a vested interest in the United States maintaining maximum pressure on its innermost enemy.

Civil war

There is a third scenario … The one Hillary Clinton advises Biden. That is, not recognizing the election results … It will be all the easier to challenge the results as the coronavirus epidemic has prompted many states to offer to vote by mail. Here is what the General Attorney has to say on this hot topic (for anglophiles):

Barr reacts to Trump suggesting Americans vote twice

And Bitcoin in all of this?

Oddly, Bitcoin tends to grow along with the stock market, although it is by definition the anti-Ponzi scheme ! Which suggests that “bitcoin whales” are not what you think they are. It is not about cypherpunks having mined from the start and upgrading to goldenboys. No, we are in the presence of market professionals who entertain themselves in Bitcoin as soon as the appreciation of their stock market portfolios gives them a little leeway. No trader can resist the most volatile market in the world: BTC. The latter lost 50% of its value in March when the Nasdaq only lost 30 %.

But if Bitcoin moves in tandem with the stock market, it is its correlation with gold that is fundamentally the strongest. And gold has a very strong tendency to appreciate when the stock market is falling and / or when banks are printing money.

The stock markets are a gigantic ponzi that will shatter when oil tensions emerge. Which will happen sooner or later for reasons of physical constraints. And before that even happens, the billions stuck in virtual stock market valuations will want to escape elsewhere.. They will turn into hyperinflation… It will then be necessary to own gold and Bitcoin ..

Support for $ 10,000 depends on Wall Street until their fates become inversely correlated… We will have to closely monitor the Fed’s monetary policy meeting in 8 days. A “hawkish” tone (inclined to tighten the screws by closing the floodgates) would certainly bring down the markets. And Bitcoin …

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

But to reassure us, here is THE graph that pleases… Hold $ 10,000!

Number of Bitcoin addresses with more than 0.1 BTC
Number of addresses with at least 0.1 BTC
Tags

Related Articles

Back to top button
Close
Close