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5 Stocks to Watch as Bitcoin Soars Past $20,000

Updated 4/18/2022 3 min read
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Bitcoin has defied the odds again and pushed to new all-time highs.

This once fringe concept is now in the mainstream. Senator-elect Cynthia Lummis, a Republican from Wyoming, is a bitcoin bull. She warned that government overspending could lead to a black swan event — and bitcoin could help the world stabilize afterward.

Even gold is suffering as a result of bitcoin’s popularity. Bankers at JPMorgan Chase & Co. (NYSE: JPM) said the trend is likely to continue.

The 2017 bull run ended near $20,000. Many said the scheme was up and Bitcoin was headed to zero.

But the conditions are ripe for an alternate store of value. The Fed continues to print money at a record pace. Stocks appear overbought. It’s even been said that we’re in a bubble. People are seeking safer havens to store their wealth.

Bitcoin is a digital currency outside of any government control. The supply is limited to 21 million bitcoins. About 18.5 million are currently in circulation.

The price spike to $20,800 occurred exactly three years to the day of its 2017 peak. It’s also happened just hours before the Fed is expected to announce it will continue pumping $120 billion per month into the financial systems.

Several small-cap stocks are rising dramatically in price as the world’s best-known cryptocurrency rallies. These include:

Bit Digital, Inc. (NASDAQ: BTBT)

This company is in the bitcoin mining business.

Nxt-ID, Inc. (NASDAQ: NXTD)

Nxt-ID enables contactless bitcoin payments at millions of retailers.

Code Chain New Continent Limited (NASDAQ: CCNC)

This is a Chinese based company; there are unconfirmed rumors this company is moving into the crypto space.

Marathon Patent Group, Inc. (NASDAQ: MARA)

Marathon Patent Group operates a cryptocurrency mining business for a range of assets including bitcoin.

Riot Blockchain, Inc. (NASDAQ: RIOT)

They’re also a bitcoin miner with expanded operations to support blockchain services and payment systems.

To believers in bitcoin, the price spike comes as no surprise. CNN declared bitcoin to be the “investment of the decade.” Investors who bought when it was first available in 2010 and held until the end of 2019 returned 90,000%.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”