From The Desk Of A Trader #5
From The Desk Of A Trader #5
"Democratization of finance and financial emancipation of younger Millennial and Z generations is fantastic. Yet there is now material damage from the excessive speculation fueled by FOMO"
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Today, we are happy to share the thoughts from the desk of a soft commodities trader. The following views are that of Martijn Bron and do not represent the views of his employer.
I kept this Dutch add about Bitcoin from September 2021 for periods like this, and for days like this. Bitcoin trades below USD 24k, down 15% on the day and down 65% from its ATH late last year.
The add ends with the classic and smart FOMO punch line; "I just don't want my son to ever tell me; "dad, Bitcoin was still below 50k, and you have not bought it?"" "No this won't happen to me".
"Bitcoin has the power of a phenomenon from nature" the add says. It turns out to be a mud slide wiping out its hodlers.
Will Michael Saylor's MicroStrategy survive this rout? Bitcoin's biggest bull is heavily indebted, and now down more than 20% on his multi billion dollar Bitcoin gamble since inception in 2019. He will be on the phone all day long with Mr Margin.
Watch the financial newsfeeds on this one, it could become crypto's Lehman moment.
No schadenfreude from my side, and as Joshua Brown says "don't be a piker" as every investor, no matter what asset class you are long right now, is bleeding.
Democratization of finance and financial emancipation of younger Millennial and Z generations is fantastic.
Yet there is now material damage from the excessive speculation fueled by FOMO, media hype, and lots of advertising, like the one I show.
Learn from it and recognize it in the future.
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