Our words to you the week that Coinbase (COIN) came public!
“Bitcoin looks like it is topping out. Yes…you know, that new asset class that will never go down. That asset class that is now being accepted AFTER A 6-7 -FOLD MOVE in the past year. That asset class where a gargantuan IPO was able to come public at valuations beyond the beyond AFTER A 6-7 FOLD MOVE. That asset class that is NOW being talked about by everyone AFTER A 6-7 FOLD MOVE. Catching our drift? What merchant in their right mind would accept this asset class AFTER A 6-7 FOLD MOVE? The answer is a ton of them but…watch what happens if this asset class that will never go down decides to go into a bear market. What? You don’t think an asset class that just went up 6-7 FOLD can drop 30, 40, 50%? WE ARE UTTERLY AMAZED AS TO HOW MANY HAVE COME TO BELIEVE THIS “THING” WILL NEVER GO DOWN. WE ARE STUNNED BY HOW MANY WILL NOT EVEN CONSIDER THE POSSIBILITY. Seems that ridiculously priced IPO may have marked a moment.”
The coins are now being crushed. The DOGE coin started as a lark, Doge is down 50% from recent highs. Ethereum down almost 50%. Can’t imagine what some of the other coins are doing. A few more were started in recent weeks. As we reported to you, many of the fed-induced bubbles have already popped…SOLARS, 3D, SPACS, ELECTRIC VEHICLES, SOLAR CELLS, PENNY STOCKS, WEED, NO SALES JUNK, RIDICULOUSLY PRICED IPOs, the GAMESTOP short squeeze and whatever else was caught up. It is now the coins’ turn and find it classic the major top came in right around the IPO. Do not believe those that say they are long-term holders. We are already seeing some back away from their “acceptance” of the coins as currency as all of a sudden, risk matters. Even Mr. Musk is moved by price. Do not believe the hedge funds who bought a ton, then announced they bought a ton, then told you to hop on board.Do not believe it when they say they are in it for the long term and just sit there even if prices head lower. We promise you they will not just sit. Price moves emotion. Price moves action. We are also not so sure of how much liquidity there will be as the process plays out. Near-term, beats the heck out of us whether these coins are able to make a stand. Just know it looks like this bubble popped and classically, right around the time a gargantuan, over-priced IPO (another over-priced IPO) came out. And lastly, no one has still answered the question: What earnings and sales back up the price of these coins?
LET US REPEAT:
As we watched the many, we could not believe how not one, AFTER A 6-FOLD MOVE IN LESS THAN A YEAR…and that is just the BITCOIN, believed anything could go awry. Not one believed even a 20% drop after such a move can happen. We could not believe so many businesses, so many important businesses, would start accepting these coins as currency after such a gigantic move. Even some of the smartest people in the world got caught up in the greed and the noise. WE EXPECT MANY WILL QUIETLY ANNOUNCE THAT THEY WILL NO LONGER ACCEPT COINS AS CURRENCY BECAUSE THEY HAVE FOUND OUT THERE IS RISK. Duh!