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⚡Bitcoin Becomes 10th Largest Asset🦣

Croxroad

05 Dec 2023 — 5 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🔟 Bitcoin Makes History

Bitcoin recently saw a bit of a dip and is currently trading at $41,803. But here's the interesting part - it's gaining ground against big-shot global stocks and has even surpassed the market value of Berkshire Hathaway, Warren Buffett's company.

On December 4th, Bitcoin's market cap exceeded a whopping $800 billion, making it more valuable than Berkshire Hathaway. Just the day before, it edged past Berkshire Hathaway's market cap of $779 billion, which was based on its class A stock (BRK.A). This is noteworthy because despite a slight dip in the past few days, Bitcoin has been on fire, surging over 20% in the last month and nearly 150% year to date.

Comparatively, Berkshire Hathaway's stock, BRK.A, has seen a modest decline of about 1.3% in the last five days. However, over the past month, it's still up 4.7%, and year to date, it's up by a solid 14.7%. Yet, Bitcoin's volatility is on a whole different level.

As of now, Bitcoin's market cap stands at $811 billion, which is about 4% higher than Berkshire Hathaway's market value. Fun fact: Berkshire Hathaway, established in 1839, is a massive multinational holding company based in Omaha, Nebraska, with its main business being insurance and investments in various companies, including heavyweights like Bank of America and Apple.

The crypto community, as always, had something to say about this. John Deaton, a cryptocurrency lawyer, took to X (formerly Twitter) to share his thoughts, sarcastically referring to Buffett's famous 2018 comment calling Bitcoin "rat poison squared."

Now, in the grand scheme of things, Bitcoin is now the 10th-largest asset by market cap, following Meta Platforms (formerly Facebook) and Nvidia. Meta's market value stands at $834 billion, while Nvidia is leading the pack with a staggering $1.2 trillion.

Even with this impressive performance, Bitcoin is still about 38% below its all-time high of $69,000, which it hit in November 2021. But, if the current bullish trend continues, we might witness Bitcoin reaching the coveted $1 trillion market cap for the second time in its history. The first time was in February 2021 when it hit $53,700. Exciting times for the crypto world!

🇸🇻 Bukele's Bitcoin Gamble Pays Dividends

El Salvador's president, Nayib Bukele, just shared some exciting news about their venture into Bitcoin. Despite facing criticism and ridicule for adopting Bitcoin as legal tender, Bukele proudly announced that the country's Bitcoin investment is now "in the black" and profitable.

Over the past week, Bitcoin's price has been on a steady rise, hitting a new annual high of over $42,000. This resurgence not only put Bitcoin back in the headlines but also brought attention back to El Salvador's bold move.

Bukele took to X (formerly Twitter) to address the critics, mentioning that despite numerous articles questioning the country's losses, their current Bitcoin holdings could not only recover the entire investment but also generate a profit of $3,620,277. He even shared a screenshot from nayibtracker.com, a website tracking El Salvador's Bitcoin portfolio.

El Salvador started acquiring Bitcoin in September 2021, following the Bitcoin Law. Bukele shared the initial purchase of 200 coins and later reported additional buys, including a daily purchase starting in November 2022. As of now, El Salvador holds 2,762 bitcoins with an average price of $42,433.42 and a market value exceeding $115 million. The break-even price for their portfolio is set at over $42,500 per Bitcoin.

Despite facing challenges, especially during Bitcoin's price downtrend since its all-time high in 2021, El Salvador remains committed to holding onto their Bitcoin for the long term. Bukele clarified that selling has never been their intention, acknowledging the future price fluctuations but emphasising their unwavering long-term strategy.

It's worth noting that El Salvador made history by becoming the first country to declare Bitcoin legal tender in 2021. Bukele highlighted that their Bitcoin adoption, despite international scrutiny, has had positive impacts, with institutions like Santander noting the positive effects of the Bitcoin Law on tourism and investments in the country.

⚖️ Scalping

Scalp traders are like the detectives of the stock market, always on the lookout for opportunities to make quick profits by exploiting small inefficiencies. The trick with scalping is to engage in a high volume of trades, capitalising on tiny price movements within a single day.

To pull off successful scalp trades, these traders delve into the historical trends and volume patterns of a particular asset. They're essentially trying to predict the market's next move, aiming to enter and exit positions swiftly.

Now, it's not all smooth sailing. Scalping comes with risks, and it's crucial for smart traders to keep a close eye on things like margin requirements and other important rules. These precautions are vital to avoid turning what could be a profitable venture into a downright terrible trading experience.

One key preference of scalp traders is to operate in highly liquid markets. Why? Well, in these markets, it's easier to predict the right time to jump in or out. It's a bit like navigating a well-charted territory.

Interestingly, big players in the market, often referred to as "whales" or large traders, are known to embrace the scalping strategy. They use it as a tactical approach to handle substantial trading positions.

In a nutshell, scalp trading is a game of precision and quick decision-making, where traders ride the waves of market fluctuations within the same day, all in pursuit of those small, yet lucrative, profits.