I bet you can’t guess what this chart shows
Friday, 6 July 2018
By Sam Volkering
- Two astonishing charts
- The turnaround of the decade
- To follow or not to follow that is the question
In the second half of 2017 crypto prices went bonkers. We saw fiat-converted prices absolutely skyrocket.
We saw incredible fear of missing out (FOMO). We saw a tsunami of speculators pile into the market. We saw an explosion of awareness and interest.
And you only need to glance at some crypto charts to see exactly how crazy things were.
For example, let’s look at this chart…
Click to enlarge
You don’t need to be a brain surgeon to figure this one out. It’s the rise of Bitcoin’s value last year. July to December. Around US$2,500 early July to almost US$20,000 mid-December.
Have a look at this chart too…
Click to enlarge
This chart is a little harder to guess. Yes, it’s crypto related. But it’s not just one. It’s the entire market cap of all crypto listed on Coinmarketcap.com.
It’s not every crypto there is. But it’s a good few thousand of them. As you can see, the dates on this are the same as the bitcoin chart.
You can see the rise from around US$100 billion to almost US$700 billion by December. The total ‘market cap’ would actually go on to around US$830 million mid January.
Still an astonishing return over little more than six months.
And then…the fall.
After a meteoric rise the fall has been equally dramatic. In fact it’s been brutal.
But not everything has taken a tumble. In fact, there’s one investment that’s going from strength to strength. In my view, thanks to crypto it might even continue higher and deliver more huge returns to investors.
And I bet you can’t guess what it is.
Overnight the Dow Jones Industrial Average closed up 181.92 points, or 0.75%.
The S&P 500 rose 23.39 points, or 0.86%.
In Europe the Euro Stoxx 50 index finished up 28.89 points, or 0.85%. Meanwhile, the FTSE 100 gained 0.40%, and Germany’s DAX climbed 146.68 points, or 1.19%.
In Asian markets, Japan’s Nikkei 225 is up 238.26 points, or 1.11%. China’s CSI 300 is up 0.26%.
In Australia, the S&P/ASX 200 is up 47.80 points at time of writing, or 0.77%.
On the commodities markets, West Texas Intermediate crude oil is US$73.01 per barrel. Brent crude is US$77.26 per barrel.
Gold is trading for US$1,254.94 (AU$1,695.44) per troy ounce. Silver is US$16.02 (AU$21.64) per troy ounce.
One bitcoin is worth US$6,521.16.
The Aussie dollar is worth 74.02 US cents
The turnaround of the decade
These kinds of returns are extraordinary.
Here’s another chart I think you should look at…
Source: Yahoo Finance
Click to enlarge
Now this chart is a really interesting one. I’ve removed any identifier from it. I’ve removed prices from the X-axis. I want you to have a guess at what this might be…
Got it yet?
This is one of the most extraordinary turnarounds I’ve seen for some time. And the way I see it, it’s also related to crypto.
The chart above is the stock price of…Twitter Inc. [NASDAQ:TWTR].
That’s right, the social media stock that everyone loves to hate is booming.
In fact Twitter is now trading at US$44.89. It’s 52 week low was US$15.67, seen in early August 2017. But since then Twitter has ‘mooned’. At it’s recent 52-week high of US$47.79 we’re looking at a 204% return.
OK, OK that’s not quite crypto ‘10x’ returns. But for Twitter, it’s incredible.
Now you might not be a Twitter user. I am. I’m a daily visitor to Twitter. And I regularly post, comment, like, retweet and share through it.
If you’re at all so inclined, feel free to follow me at @techinsider_sv
The reason I use Twitter so much is it’s the best news feed I know of. It’s a cultivated feed of things I’m interested in just for me.
You see, as a Twitter user you can ‘follow’ other Twitter users. That might include people. It might include businesses. It might include news channels or newspapers or…well…anything or anyone.
It’s not just about news. It’s also a great source of comedy and entertainment. You can find stories of greatness, hope and optimism. You can find the funniest things that will definitely make you ROFL (roll on the floor laughing)
It connects you to people in a way that I think other social networks can’t.
Of course, it’s not all happy days. There’s a dark side to Twitter as well. There are scammers, fraudsters, trolls, abusers and those out to cause damage.
These are issues Twitter has to deal with.
However, on the balance of it, I find Twitter is the most beneficial social media platform there is. Plenty of people don’t agree with me. But it seems now there’s a growing number who do. And importantly for Twitter’s stock price, those numbers are growing.
This really could be the turnaround stock of the decade.
Is the reason ‘Crypto Twitter’?
In the first quarter of 2018 Twitter had 6 million new monthly users. And most of those are coming from outside of the US. Just to add a little extra spark to the stock price, they expect to be profitable for the rest of 2018.
Let’s not forget Twitter first went public in 2013 at $26 a share. Initially they soared in value. On the first day of trading they were 76% higher.
However until mid-2017 the stock was in one huge decline. It was the IPO that everyone loved to slam. It was the stock people loved to hate. But now Twitter is on the comeback trail.
I think it’s because of crypto.
You see, I believe one of the catalysts to Twitter’s turnaround is ‘Crypto Twitter’. This is still Twitter. It’s just the sub-culture on Twitter that’s solely focused on the crypto world.
Twitter has become the place for the crypto community to share, expand on and discuss all things crypto.
Thanks to the surge in interest and awareness in the second half of 2017, I think the influx of crypto users is directly related to the influx of Twitter users.
And Twitter’s sudden bout of profitability?
Well again, I think it’s down to increases in advertising revenue from the broader crypto community. In fact, I think that Twitter could become the most influential social media platform of all, thanks to crypto.
My view is that crypto markets are set to soar higher even than their January 2018 highs. It might not happen in the next week or the next month. But in my view it’s going to come within the next year and then continue on from there.
And I think Twitter has a massive role to play in that next phase for the wider crypto community. ‘Crypto Twitter’ is a growing beast. It’s going to help drive crypto projects into the mainstream, and quite possibly, Twitter’s stock price into the stratosphere.
Exclusive, rare, lucrative…where do I sign up?
Now as I say, I’m pretty active on Twitter. And one of the people I actively follow and pay close attention to is my former colleague Jim Rickards. If you’re inclined to follow Jim and join his 105,000 other followers his Twitter handle is @JamesGRickards.
I call Jim a former colleague, because he’s now writing for our friends over at Agora Financial Australia. Let’s call them friendly competition!
Nonetheless Jim is one of the most fascinating people I’ve ever had the pleasure of speaking with. His knowledge on gold investing is world class. In fact, I’d say he’s the most clued up gold investor, ever.
And right now Jim and Shae Russell (another of our former Port Phillip stars) are putting together a four-part investment series they call ‘Project Prophecy’.
This looks at a gold window for investment that’s extremely rare, and historically a huge moneymaker. Their four-part series kicks off on Sunday, 8 July via an exclusive website.
Now thanks to our ‘friendly competitive’ relationship with Agora Financial Australia, they’ve been kind enough to provide you with free access to this four-part series.
All you have to do is register your interest to secure your spot, here.
I hope you’ll sign up and check it out. I will be. And I hope to maybe hear from you sometime and see you on my Twitter feed.
Until next week,