Specialising in Bitcoin, Gold and Digital Assets

ByteTree Asset Management

Investment Manager specialising in bitcoin, gold and digital assets

CEO, ByteTree Asset Management

Crypto

<p>The dollar has reversed, and before you knew it, gold rallied and bitcoin surged. The dollar trend remains strong, but it’s tired, and when it finally cracks, everyone will be talking about crypto and precious metals again.</p>
<h3>Dollar 5/5 trend score</h3>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/297/180/original/image_63391855521662767898010.png?1662767900" class="editor-image img-responsive" data-smartkarma-image-id="297180"></figure>
<div class="content-caption">Source: Bloomberg</div>
<p>They should be already. Cosmos (ATOM) was recently added to&nbsp;ByteFolio&nbsp;and surged 23% overnight. Why doesn’t this sort of thing happen more often in traditional markets? People have forgotten about the delights of a crypto bull market. ByteFolio has done a remarkable job of identifying the leading crypto projects, and we are excited about its prospects.<br><br>At the heart of ByteFolio is&nbsp;ByteTrend crypto, which measures the trends. The growing area of blue shows the increasing range of opportunities, but be sure you avoid the ones in red. If you get a moment this weekend,&nbsp;<a href="https://bytetree.us3.list-manage.com/track/click?u=a4a4461fba9ee073aaefd6019&amp;id=de74a3f346&amp;e=7c019babf2" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://bytetree.us3.list-manage.com/track/click?u%3Da4a4461fba9ee073aaefd6019%26id%3Dde74a3f346%26e%3D7c019babf2&amp;source=gmail&amp;ust=1662854172976000&amp;usg=AOvVaw1iuPrUQXlXrOHY660nN9NN" rel="noopener">have a play with the data set</a>. You may literally strike gold.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/297/181/original/image_87596485331662767934085.png?1662767935" class="editor-image img-responsive" data-smartkarma-image-id="297181"></figure>
<div class="content-caption">Source:&nbsp;<a href="https://bytetree.us3.list-manage.com/track/click?u=a4a4461fba9ee073aaefd6019&amp;id=df4b960435&amp;e=7c019babf2" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://bytetree.us3.list-manage.com/track/click?u%3Da4a4461fba9ee073aaefd6019%26id%3Ddf4b960435%26e%3D7c019babf2&amp;source=gmail&amp;ust=1662854172976000&amp;usg=AOvVaw2ez9pBwoWozG_wuJBQy01U" rel="noopener">ByteTree Terminal</a></div>
<p>Each month I write&nbsp;Atlas Pulse&nbsp;on the gold market. Next month will be my tenth anniversary, having first published in October 2012. How shall we celebrate? I’ll gladly take a decent rally. When this dollar bubble finally cools, that’ll be inevitable.<br><br>In the&nbsp;<a href="https://bytetree.us3.list-manage.com/track/click?u=a4a4461fba9ee073aaefd6019&amp;id=c7d8e73231&amp;e=7c019babf2" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://bytetree.us3.list-manage.com/track/click?u%3Da4a4461fba9ee073aaefd6019%26id%3Dc7d8e73231%26e%3D7c019babf2&amp;source=gmail&amp;ust=1662854172976000&amp;usg=AOvVaw266Q6CgIoGdQhmZMpdzS6Z" rel="noopener">latest issue</a>, I highlighted how the great rallies have always started from a position of high real interest rates. Having surged this year back to the 2018 levels, gold’s resilience has been remarkable in the face of tight money. When they turn down, gold will fly. They will certainly turn down because the economy will demand it.&nbsp;<br><br>In&nbsp;ATOMIC, we again&nbsp;<a href="https://bytetree.us3.list-manage.com/track/click?u=a4a4461fba9ee073aaefd6019&amp;id=a5cce3ae61&amp;e=7c019babf2" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://bytetree.us3.list-manage.com/track/click?u%3Da4a4461fba9ee073aaefd6019%26id%3Da5cce3ae61%26e%3D7c019babf2&amp;source=gmail&amp;ust=1662854172976000&amp;usg=AOvVaw1zshbaDfNFM2oyZ6N_VZXX" rel="noopener">discussed the divergence in crypto</a>. There are many projects (20,000 or so) that are basically worthless, and the market knows it. But there are some that will be the titans of the future, and that’s why we are here. Bitcoin is unquestionably a titan, and our research suggests the price is underpinned at $20,000.&nbsp;<br><br>Assuming Ethereum successfully moves to proof of stake, its energy consumption will collapse by over 99.9%. That means it will be institutional investor friendly. There are only two energy-hungry proof of work coins that deserve to survive. One is Bitcoin, and the other Monero, which has a focus on privacy, just like cash. Is privacy immoral? We don’t think so.&nbsp;<br><br>In traditional markets, it’s pretty rough out there. There are very few positive trends, and they are all related to energy.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/297/182/original/image_29850039841662768035200.png?1662768037" class="editor-image img-responsive" data-smartkarma-image-id="297182"></figure>
<div class="content-caption">Source:&nbsp;<a href="https://bytetree.us3.list-manage.com/track/click?u=a4a4461fba9ee073aaefd6019&amp;id=a6c4a893bc&amp;e=7c019babf2" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://bytetree.us3.list-manage.com/track/click?u%3Da4a4461fba9ee073aaefd6019%26id%3Da6c4a893bc%26e%3D7c019babf2&amp;source=gmail&amp;ust=1662854172976000&amp;usg=AOvVaw3Gnqyy39Lhk53_glKvqyNh" rel="noopener">ByteTree Terminal</a></div>
<p>That said, two areas are perking up, banks and biotech. Banks are interesting as they like higher rates, but I don’t suppose they enjoy recessions. But after 14 years since their near-death experience, they have rarely been in better shape.</p>
<h3>US Banks relative to the world Index 5-star trend score</h3>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/297/183/original/image_46087990451662768067065.png?1662768068" class="editor-image img-responsive" data-smartkarma-image-id="297183"></figure>
<div class="content-caption">Source:&nbsp;<a href="https://bytetree.us3.list-manage.com/track/click?u=a4a4461fba9ee073aaefd6019&amp;id=6bd1a0898c&amp;e=7c019babf2" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://bytetree.us3.list-manage.com/track/click?u%3Da4a4461fba9ee073aaefd6019%26id%3D6bd1a0898c%26e%3D7c019babf2&amp;source=gmail&amp;ust=1662854172976000&amp;usg=AOvVaw28s3PYDTRyZl_PyvKoDkGw" rel="noopener">ByteTree Terminal</a></div>
<p>As for biotech, we all want to live forever, and these companies have the products to make that happen.&nbsp;</p>
<h3>Biotech relative to the world Index 5-star trend score</h3>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/297/184/original/image_68631203061662768104760.png?1662768106" class="editor-image img-responsive" data-smartkarma-image-id="297184"></figure>
<div class="content-caption">Source:&nbsp;<a href="https://bytetree.us3.list-manage.com/track/click?u=a4a4461fba9ee073aaefd6019&amp;id=727e0c20f7&amp;e=7c019babf2" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://bytetree.us3.list-manage.com/track/click?u%3Da4a4461fba9ee073aaefd6019%26id%3D727e0c20f7%26e%3D7c019babf2&amp;source=gmail&amp;ust=1662854172976000&amp;usg=AOvVaw06CfP86st1vi90XLRYMskf" rel="noopener">ByteTree Terminal</a></div>
<p>Looking at the underlying index, you are paying 2015 prices while getting seven years of additional research and development for free.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/297/185/original/image_12339815771662768129413.png?1662768130" class="editor-image img-responsive" data-smartkarma-image-id="297185"></figure>
<div class="content-caption">Source: Bloomberg</div>

The dollar has reversed, and before you knew it, gold rallied and bitcoin surged. The dollar trend remains strong, but it’s tired, and when it finally cracks, everyone will be talking about crypto and precious metals again.
Dollar 5/5 trend score

Source: Bloomberg
They should be already. Cosmos (ATOM) was recently added to&nbsp;ByteFolio&nbsp;and surged 23% overnight. Why doesn’t this sort of thing happen more often in traditional markets? People have forgotten about the delights of a crypto bull market. ByteFolio has done a remarkable job of identifying the leading crypto projects, and we are excited about its prospects.  At the heart of ByteFolio is&nbsp;ByteTrend crypto, which measures the trends. The growing area of blue shows the increasing range of opportunities, but be sure you avoid the ones in red. If you get a moment this weekend,&nbsp;have a play with the data set. You may literally strike gold.

Source:&nbsp;ByteTree Terminal
Each month I write&nbsp;Atlas Pulse&nbsp;on the gold market. Next month will be my tenth anniversary, having first published in October 2012. How shall we celebrate? I’ll gladly take a decent rally. When this dollar bubble finally cools, that’ll be inevitable.  In the&nbsp;latest issue, I highlighted how the great rallies have always started from a position of high real interest rates. Having surged this year back to the 2018 levels, gold’s resilience has been remarkable in the face of tight money. When they turn down, gold will fly. They will certainly turn down because the economy will demand it.&nbsp;  In&nbsp;ATOMIC, we again&nbsp;discussed the divergence in crypto. There are many projects (20,000 or so) that are basically worthless, and the market knows it. But there are some that will be the titans of the future, and that’s why we are here. Bitcoin is unquestionably a titan, and our research suggests the price is underpinned at $20,000.&nbsp;  Assuming Ethereum successfully moves to proof of stake, its energy consumption will collapse by over 99.9%. That means it will be institutional investor friendly. There are only two energy-hungry proof of work coins that deserve to survive. One is Bitcoin, and the other Monero, which has a focus on privacy, just like cash. Is privacy immoral? We don’t think so.&nbsp;  In traditional markets, it’s pretty rough out there. There are very few positive trends, and they are all related to energy.

Source:&nbsp;ByteTree Terminal
That said, two areas are perking up, banks and biotech. Banks are interesting as they like higher rates, but I don’t suppose they enjoy recessions. But after 14 years since their near-death experience, they have rarely been in better shape.
US Banks relative to the world Index 5-star trend score

Source:&nbsp;ByteTree Terminal
As for biotech, we all want to live forever, and these companies have the products to make that happen.&nbsp;
Biotech relative to the world Index 5-star trend score

Source:&nbsp;ByteTree Terminal
Looking at the underlying index, you are paying 2015 prices while getting seven years of additional research and development for free.

Source: Bloomberg

Bitcoin

Dollar Down, Bitcoin Surge