Bitcoin has been the headline item in recent weeks. Its pace has surpassed the gold and silver run of 1979-80 and the NASDAQ of 1999. But it is not unlike the real high-fliers of the Dotcom mania. A realistic comparison of Bitcoin is best done with Qualcomm of 1999.
The key lows in QCOM had been $2.36 in 1998 (42x move to $100), $0.92 in 1994 and $0.40 in 1992 (250x move to $100).
If the next consolidation in Bitcoin holds above $11,000 then we could be looking at a double from the corrective low.
The following charts display the dynamic action of investment vehicles in the sector during the last six months. Regardless of the extent of the upside moves, most have provided corrections back below their 20-day exponential moving averages, frequently testing the 50-day average.
Opinions in this report are solely those of the author. The information herein was obtained from various sources; however, we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation, and the needs regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.
Investors should note that income from such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.
BOB HOYE, INSTITUTIONAL ADVISORS
