2 Moonshots to Sell as Crypto Slides (and 3 to Snatch Up!)
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This article is excerpted from Tom Yeung’s Moonshot Investor newsletter. To make sure you don’t miss any of Tom’s potential 100x picks, subscribe to his mailing list here.
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It’s been a phenomenal month for crypto bulls. On Monday, Mastercard (NYSE:MA) announced a partnership with Bakkt Holdings (NYSE:BKKT) to enable cryptocurrency card payments. And on Tuesday, the FDIC chairman revealed ongoing talks that would allow banks and their clients to hold cryptocurrencies.
In the words of Decrypt’s John Roberts, “Bitcoin’s Netscape moment is finally here.”
Such comparisons to the internet’s first browser, however, might remind investors of a different saying:
No one rings a bell at the top of the market.
While it’s obvious that cryptocurrency is in the middle of a 1990’s-style tech boom, it’s hard to tell whether Bitcoin (CCC:BTC-USD) is Netscape in 1994… or 1997… or the year before the browser shut down in 2003. It’s unclear what today’s crypto wobble signals in the grand scheme of the market.
Jerome Powell, Bell-Ringer
America, however, does have someone who looks like a bell-ringer. Fed Chair Jerome Powell. And last Friday, he made his intentions clear.
“I do think it’s time to taper,” Mr. Powell said at an online conference for the Bank of International Settlements. The U.S. central bank’s bond-buying program could scale back as early as next month.
That’s troubling news for crypto. The Federal Reserve has pumped over $4 trillion into the U.S. economy since the start of the Covid-19 pandemic, 65% more than the total market cap of all cryptocurrencies. Without that liquidity, cryptocurrencies will begin to stall.
As we enter the later innings of the crypto bull run, it’s time to selectively take profits on some of the picks you’ve seen on the Moonshot Investor.
Source: Catalyst Labs / Shutterstock.com
Harvesting Your Crypto Profits
On Monday, Reddit favorite Shiba Inu (CCC:SHIB-USD) bubbled up to become the world’s 11th biggest cryptocurrency. The token is now up 420% since I named it my only low-quality pick back in August. (Doggy derivative Floki Inu (CCC:FLOKI-USD) has since joined SHIB in that category).
Other Moonshot picks have done similarly well. Solana (CCC:SOL-USD) surged past the $200 mark while Terra (CCC:LUNA-USD) rose 40% since September, outperforming both Bitcoin and Ethereum (CCC:ETH-USD). The only blue-chip stinker from this newsletter — Internet Computer (CCC:ICP-USD) — still leaves Moonshot with an enviable crypto record.
But as my Momentum Master strategy makes clear, investors should also know when to lock in profits. And with many cryptos rising to record levels, markets are starting to flash the warning sign: it’s time to cash in.
Take Profits: Shiba Inu (SHIB)
For crypto watchers, following Elon Musk’s tweets might as well be a full-time job. A single tweet by the self-proclaimed “Dogefather” can add (or remove) billions in crypto values within hours.
Source: Twitter.com
In this sense, Shiba Inu — an Ethereum token that gained notoriety in July — could become the next Dogecoin (CCC:DOGE-USD). And not necessarily in a good way.
Since reaching a record of 4.4 thousandth-of-a-cent over the weekend SHIB prices have begun to wobble. By Monday, trading volumes had collapsed 40% from a day earlier and prices swung 20% — often a tell-tale sign of weakening investor demand. Investors with long memories may recall a similar phenomenon happened with Dogecoin in May.
It’s still too early to cash out entirely; a petition to get SHIB on Robinhood (NASDAQ:HOOD) garnered more than 300,000 signatures, sending the token higher yet. But smart investors will use the opportunity to sell 50% of their stake to enjoy the 420% Moonshot gains.
Take Profits: Solana (SOL)
Regular readers of the Moonshot Investor will know I’ve written about Solana (CCC:SOL-USD) since May, when I called it an “Ethereum Killer” with “strong potential for gains ahead.”
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