Crucial points from this post:
- Learn what’s behind stock crashes to understand why we might be at the beginning of one.
- Bitcoin (BTC) is breaking out — but I’m not convinced it’ll last. Here’s why…
- I’ve warned about promoters for years. They finally arrested one!
If you’re thinking about getting into the stock market — and especially crypto — there’s something you should know.
I’m not saying I can predict the market. But something smells fishy to me.
You’re probably saying, “Tim what are you talking about? Bitcoin’s at all-time highs!”
Don’t bother me with that. To understand what’s really going on, you’ve gotta dig deeper…
Table of Contents
Robinhood’s Down … But Bitcoin’s Up?
A lot of traders don’t take the time to do sufficient market research. They just grab onto the hottest story and hope it’s the right one.
Sure, bitcoin’s up. But let’s try to connect the dots a little starting with…
What You Should Know About Robinhood’s Q3 Revenue
The last time bitcoin was at its highs, Robinhood’s revenue was through the roof. Can you guess why? Nearly everyone who bought crypto used Robinhood.
Look at this figure of Robinhood’s average revenue per user…
Share prices took a big hit. Now look at the chart for Robinhood Markets Inc. (NASDAQ: HOOD). Can you guess when the news came out?
Go check out the daily chart. It’s pretty ugly.
What’s the Deal With Bitcoin?
I know BTC is at all-time highs. But think about this…
If traders aren’t buying bitcoin on Robinhood … how is the price breaking out?
Here’s my theory…
Everyone pumping bitcoin said to hold position. If everyone held, the price would go up. Theoretically, that’s correct. But only if people keep buying to push the price higher.
But what happens if we run out of buyers?
If people stop buying bitcoin, the only way to go is down.
That sounds like the start of a huge crash!
Here’s another nail in the coffin…
Take a look at Proshares Bitcoin Strategy ETF (NYSE: BITO). Buying this stock is basically like buying bitcoin futures.
It just started trading on October 19 and it’s tanking.
Why I Expect the Worst in This Niche
I’ve been talking about these Twitter pumpers for years now. I never thought I’d see the day one got arrested.
I'm getting SOOO MANY questions about promoters, I'll answer a ton in tonight's https://t.co/occ8wKmlgm webinar, but also watch https://t.co/KhqHFIvHsM & read https://t.co/QTYT7tQ5da & https://t.co/ztLtSBxBwN & https://t.co/GTKGdG5XiF as you must learn all you can to be prepared!
Don’t get me wrong — what they do is horrible and immoral. But it’s gone unchecked for so long. I figured it was hopeless.
Now that it’s happened, maybe there will be more arrests in the future. None of this can be good news for the market’s reputation.
What Should Traders Do Right Now?
That’s what my top students and I do in my Trading Challenge. If you think you’re ready, apply for the Trading Challenge today. I don’t accept everyone — only the truly dedicated. It’s where all my millionaire students started.
What do you think about bitcoin’s new highs? Is crypto here to stay or will it fall back down? I love to hear from you!