‘The Wolf of Wall Street’, says crypto investors should saddle up for at least two years before making any money
Jordan Belfort believes the fundamentals of Bitcoin are really strong and is optimistic for the future.
The 59-year-old former stockbroker says crypto-investors can either bet on protocols with a long-term focus, or put a small amount into smaller projects.
He says there’s limited supply, and as inflation continues to rise, Bitcoin will begin to trade like a store of value.
Belfort has changed his tune from previously criticising the ‘get rich quick’ scheme behind cryptocurrencies.
“If you take a three or maybe five-year horizon, I would be shocked if you didn’t make money because the underlying fundamentals of bitcoin are really strong,” he told Yahoo Finance.
But he says you should still proceed with caution “that most of the time you will lose and be prepared to lose it all”.
Belfort inspired the 2013 film, ‘The Wolf of Wall Street’, which centres around his life in the fast lane after a Wall Street crash.
Bitcoin is hovering below USD $20,000, and is down over 10 per cent in the last week.
Meanwhile, Ethereum has taken a modest drop by around one per cent.
What’s behind the Crypto crash?
Anyone who’s been interested in cryptocurrency knows that it’s volatile with its “boom and bust” cycles. Bitcoin has fallen below $US20,000 for the first time since November 2020.
Over the last 7 months its value has shrunk by more than 70%
New York closes in on Robinhood dodgy crypto arm
Robinhood has been fined $30 million for alleged violations of anti-money-laundering, cybersecurity and consumer protection rules
New York state is closing in on the company’s crypto arm, with concerns the trading platform isn’t devoting enough resources to address compliance and cybersecurity risks.
It follows several regulatory probes into Robinhood in recent months.
In a statement, lawyers say the company has made “significant progress” in building legal, compliance and cybersecurity programs.
As part of the settlement deal, Robinhood Crypto will also be required to have an independent consultant to evaluate compliance practices moving forward.
At what times does the world invest in crypto?
New figures are out on when the most activity on the Bitcoin Network happens
Coin Metrics has found European and U.S. business hours is a hotspot for crypto investment on the Bitcoin Network.
It’s understood U.S. investors use the services in the morning hours, while Europe waits for later in the day.
Analysts are reporting a drop in the share of activity happening during Asian hours.
It seems like the use of Bitcoin in Asian markets fell around a year ago, which coincides with China’s crack downs on crypto mining.
The figures looked at when changes to wallets took place, before they were segmented based on the opening hours of various global exchanges.
Coin Metrics looked specifically at the Hong Kong Stock Exchange, London Stock Exchange, and the New York Stock Exchange.
Analysts also looked at Ethereum data, which is less clear than Bitcoin. However, the company believes Ethereum trading also tends to occur during U.S. waking hours.
Is this the beginning of the end for bitcoin?
Concerns investors will lose faith in the crypto following Tesla’s sell-off
Tesla’s bitcoin sell-off has analysts concerned, after the company dumped $936 million worth of crypto, or 75% of its total holdings.
Following the news – the crypto’s price dropped and gains seen just last week were brought back down to earth.
So now the world’s biggest EV manufacturer has dropped the majority of its Bitcoin stake, should we all be doing the same?
On an earnings call, Musk said his company dumped its holdings due to the uncertainty around China’s Covid lockdowns.
He noted it’s important for Tesla to maximise its cashposition during this difficult economic period.
“The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate. So it was important for us to maximise our cash position.”ELON MUSK
But does this really stack up? Or is it just an excuse following a nice rally?
Up until Wednesday, the last week had been good for Bitcoin, gaining 12 per cent in just seven days.
While other cryptos including ethereum and solana surged even more dramatically.
Musk says his company is still open to increasing bitcoin holdings in future.
But some analysts predict other big investors will use Tesla’s bitcoin sale as a justification to offload their own digital coins and send the price even lower.
“We are certainly open to increasing our bitcoin holdings in future, so this should not be taken as some verdict on bitcoin. It’s just that we were concerned about overall liquidity for the company.”elon musk
They say like or not Musk can move markets and this is something to be conscious of.
But while the Tesla sell-off caught many off guard, analysts also stress this isn’t game over for Bitcoin and ebbs and flows are all just part of the market.
“The Tesla sell-off can trigger a new wave of related dumping from corporate bitcoin holders, most of which might also be distressed by the ongoing global economic downturn.”ANDREY DIYAKONOV FROM CHOISE.COM SPEAKING TO CNN
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