Emerging Markets Are the Biggest Determinant of Bitcoin’s Price Movement: Fundstrat’s Tom Lee Mining and network effects affect the price of Bitcoin, but according to Tom Lee, the biggest determinant of Bitcoin’s price movement is the emerging markets. And almost everyone in the emerging markets has a mobile phone. We are already seeing the seeds of the future Bitcoin revolution. In September , out of all the countries in the world, Bitcoin was most googled in Nigeria, followed by the Republic of South Africa. Venezuela sat just outside the top ten. Nov 05, · Stephen Kelso, head of markets at ITI Capital, joins Ash Bennington, Real Vision senior editor, to discuss Bitcoin as an extension of the emerging market investment phenomenon. Kelso shares his wealth of knowledge gained from years of studying emerging markets and applies this to Bitcoin. He argues that Bitcoin can be seen through the EM lens because it has a greater impact on .
Emerging markets and bitcoinBitcoin in emerging markets
Will this bottoming process lead to another buying opportunity? Image: MotiveWave Ultimate. Chance might appear to favor a tradable rally in the days ahead, but only time will tell.
Remember, just because a chart pattern repeats over and over and with a successful investment result , the outcome of any trading or investment opportunity is a purely random outcome, not connected to any series of winners or losers that preceded it. This is why you never bet the ranch on any one trade setup or market, no matter how bullish or bearish the opportunity may present itself as. Without going into a complete tutorial here, the Bill Williams Alligator the three displaced moving averages on the chart indicator does an outstanding job of helping you confirm both trading range and trending markets.
If your trading platform offers the Alligator, then, by all means, spend some time learning how to use it. You will likely find it to be a go-to technical tool from now on. When one rallies, the other may stagnate or even go the other way. Sometimes, one market trades in a narrow range, even as the other trends strongly. Image: NinjaTrader 8. At the moment, both Bitcoin and EEM look poised for rallies, but their respective timing and durations are, of course, unknowable.
An obvious tipoff of an emerging rally is the appearance of wide-range breakout price bars and above-average trading volumes. If you plan to buy either market, be sure to keep your per-trade risk small, at 2 percent of your account value or less. Consider balancing out your cryptocurrency investment portfolio with a variety of other non- or inversely correlated financial instruments such as gold, tech stocks, real estate, and emerging markets stocks.
You may not get the thrill of seeing your Bitcoin-only portfolio rally by percent well, someday. However, neither will you suffer the horror and dismay of another 85 percent Bitcoin drawdown, even as other asset classes appreciate in value or experience only minor declines.
Playing good defense is what wins the big games in the sports world. The same is also true in the game of intelligent investing and financial market speculation.
All data via TradingView. Commissions, slippage and stock dividends not factored in. Others do not trust it. For those of us who live in the developed world, this may seem unimaginable. Our central banks often have the opposite problem — they fail to devalue money even at the rate they want. For example, between the crisis and , the European Central Bank achieved an average inflation of 1. It has an infinite number of costs everywhere possible, but still — money here remains relatively stable compared to emerging markets.
For most of us, Bitcoin is a brilliant economic experiment, the technological innovation of the century, an interesting investment, something we can play with, the easiest means of access to markets that were previously only accessible to those with Wall Street ties.
Some of us see Bitcoin primarily as a Plan B for if or when our financial system collapses. And it is slowly collapsing. But there are hundreds of millions of people in the world living in countries whose economies have already collapsed. Well, excluding the Czech Republic. Even with notoriously bad currencies, however, periods of high inflation alternate with periods of relative stability.
It is important that people confronted with the bad policies set by their governments and central banks have somewhere to escape to when the situation stabilizes, when they begin to fear that things will get worse again.
Historically, people have sought security and store of value in precious metals and precious stones, but times have changed. And the change has been significant. We are more digitalized. After all, even precious metals and precious stones are nowadays usually not owned physically, but digitally.
Bitcoin is tailored to the future. Everything you possess can be held on a piece of paper or better yet, metal and kept safe on a Trezor so you can access your finances anywhere in the world, without anyone asking you for anything. It is no coincidence that we are talking about emerging economies here.
Not only Nigeria, but others too have an extremely young population that is more open to new technologies. Plus, they have something to run from — inflation. And, sometimes, cruel governments. While just a few years ago we had to run on foot, today we can run from the consequences of the actions of our governments and central banks from the comfort of our mobile phones. And almost everyone in the emerging markets has a mobile phone.
We are already seeing the seeds of the future Bitcoin revolution. In September , out of all the countries in the world, Bitcoin was most googled in Nigeria , followed by the Republic of South Africa. Venezuela sat just outside the top ten. We all know very well that we, in developed economies, do not have a problem with access to traditional financial services, while a large part of these emerging markets is still unbanked.
It is not just about money transfers, but also about keeping savings in digital form, about making it more difficult to confiscate what we have, and also just the very simple fact that anyone can simply become a day trader and chase candle charts on their monitor. Bitcoin is democratic and does not care if it is used in a non-democratic regime.
Anyone can still participate. It has its problems, of course. Typically scams. The growing interest in the space and number of less experienced users are attracting scammers who are pulling in millions of dollars from their victims. Some countries have already gone through great waves of scams and learned their lesson, while others are, unfortunately, probably still waiting for it. Even if this discourages some, it will only take a little more time for the Bitcoin revolution to unfold in emerging markets.
They have everything they need for it. Demand for Bitcoin services exists, as does supply. Now, it is only necessary to pair that demand with the supply. To some extent, it will give rise to itself, but maybe we should think about how we can support the trend. People from emerging economies deserve it and depend on it. Sign in. SatoshiLabs Follow. Emerging Issues The Turkish lira is definitely not one of the most popular currencies in the world.
The Future Belongs to Bitcoin For those of us who live in the developed world, this may seem unimaginable. Innovating since we founded the industry in with production of the first crypto hardware wallet, the Trezor One. Open-source, secure, community-driven. Trezor Blog Follow.