Bitcoin Bounces Back

Bitcoin "Rainbow" Price chart shared by Anatoly Karlin this week. 

Anatoly Karlin's Bitcoin Prediction

Before the crypto correction on Monday, we wrote about how a future Bitcoin crash could lead to a market crash (How The Next Crash Happens). Basically, a lot of publicly-traded companies add Bitcoin to their balance sheets, and then Bitcoin enters the "long winter" Anatoly Karlin predicted. 

If you missed our post-Monday, Karlin's prediction carried weight with us for two reasons. First, he's a long-term Bitcoin bull. And second, he accurately predicted the impact of COVID-19 last year. 

Crypto Corrects

After Bitcoin and the other cryptocurrencies tanked on Monday, in our next post (Crypto Gets Crushed), we asked if Karlin's long winter had come early. We noted our system was still bullish on Bitcoin-related names such as the Amplify ETF Trust (BLOK), Silvergate Capital (SI), MicroStrategy (MSTR), Riot Blockchain (RIOT), and Tesla (TSLA). If you're wondering why we included Tesla as a Bitcoin-related stock there, we did so for two reasons:

  1. Tesla recently added Bitcoin to its balance sheet. 
  2. As Dr. Eric Falkenstein recently observed, Tesla is "is clearly correlated with the same sentiment that drives Bitcoin". 

Another point we made that post was that an early Bitcoin bust - before evangelists like Michael Saylor got Bitcoin on more corporate balance sheets - would mean the stock market had dodged a bullet. 

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