🗽 Trump is Now Rooting For Bitcoin!

Happy Monday dear subscribers! In today’s Newsletter, Donald Trump seems to finally root for Bitcoin!

In today's bulletin, we are covering:

• Surfing the Market, with analysis about the Bitcoin and EGLD

• Don't miss the News about Trump’s love for BTC and Europe’s new AMLA office

• Rabby is under the spotlight.

• Short article about The Art of Contrary Thinking

• Our selection of the best Gems on X

Great consolidation weekend with some nice pushes on the altcoins side. Meanwhile Bitcoin continues ranging and consolidating, getting every dip recovered the next day. Solid bull response so far:

EGLD consolidating nicely too. I still liking it and thinking it has wild potential:

Donald Trump Signals Shift in Attitude Towards Bitcoin

Former U.S. President Donald Trump displays a shift in stance towards Bitcoin, suggesting a more favorable view in recent statements compared to previous criticism.

Trump now acknowledges Bitcoin's popularity and suggests regulation may be necessary, contrasting with earlier remarks labeling Bitcoin as a "scam" and expressing opposition to cryptocurrencies.

• Former U.S. President Donald Trump shows a change in attitude towards Bitcoin, expressing a more open stance compared to previous criticism.

• Trump acknowledges Bitcoin's popularity and suggests the need for regulation, contrasting with earlier remarks branding Bitcoin as a "scam" and criticizing cryptocurrencies.

• Trump has ventured into the crypto space with the launch of his own nonfungible tokens (NFTs), despite past skepticism about cryptocurrencies.

• The shift in attitude coincides with Vivek Ramaswamy's support for Trump and his stance against the implementation of central bank digital currencies (CBDCs).

• Trump's statements reflect a growing acceptance of Bitcoin and recognition of its role in the financial landscape.

Despite past skepticism, Trump has ventured into the crypto space with the launch of his own nonfungible tokens (NFTs).

European Authority AMLA to Be Headquartered in Frankfurt

The Council of the European Union and the European Parliament have agreed on Frankfurt, Germany, as the headquarters for the new European authority for anti-money laundering (AMLA).

AMLA, tasked with overseeing the crypto sector, will commence operations in the middle of next year with over 400 staff members.

• European authority AMLA to be headquartered in Frankfurt, Germany, as agreed upon by the Council of the European Union and the European Parliament.

• AMLA to oversee the crypto sector and have more than 400 staff members, with operations set to begin in the middle of next year.

• European Commissioner Mairead McGuinness highlights AMLA's readiness to address financial risks related to large cash payments and cryptocurrencies.

• The selection of Frankfurt as AMLA's base follows the revision of the EU's "transfer of funds rules" last year and the recent passage of the Markets in Crypto Assets (MiCA) framework.

European Commissioner Mairead McGuinness emphasized AMLA's readiness to tackle financial risks associated with large cash payments and cryptocurrencies.

Rabby

Today we are going to set the spotlight under RABBY, a solid alternative for traditional non-custodial wallets.

Developed by the DeBank team, this open sourced wallet has been designed for multi-chain scenarios and it associates automatically the corresponding chain settings for each DeFi Dapp.

Allows you to be connected to different protocols on different blockchains simultaneously, resulting in a smooth experience.

Transaction information (pop-up) for each interaction is well displayed, and clear. Even display estimated balance changes and warning notifications if something requires your attention. Very useful feature to have increased security and awareness of what we really sign or approve.

Rabby wallet is sending every transaction into a security engine for screening before you sign it to help you identify the potential risks hidden behind. 

It allows you to see and revoke permissions across all their supported chains in the wallet interface directly.

Rabby has integrated 141 chains between mainnets and testnets and is growing by the day. It is compatible with the majority of dApps I have encountered in my way.

The wallet is available for browser, desktop and mobile (beta). The process to migrate your wallets into it is very smooth and intuitive.

While doing this research I found out that there is an ongoing points campaign for airdrop! You can get points by using a referral code and completing daily tasks.

At the moment in this race, it looks like the rabbit is getting the upper hand over the fox, but let’s not forget that one has been around for years while the other is still very new.

If you decide to give it a try, make sure you are using the information provided in official sites only, recently a fake app in the Apple Store has been doing some harm.

- Twitter
- Website

This will be all from my part, wish you a great end of the month and see you in March!

The Art of Contrary Thinking

There's a saying in markets that we should be friends with the trend (AKA the trend is your friend), which is true to some extent, because this means thinking like the masses, and this isn't always the most profitable approach.

The importance of identifying a trend is to know the direction the market is heading and being able to trade accordingly. That is, if it's bullish, we should focus on trading long. Conversely, a bearish market indicates that every rebound is an opportunity to short.

But market mass behaviour is peculiar, and that is, at trend reversal points, the masses tend to be wrong. Let's delve into what this means.

Market tops often occur when optimism reaches an extreme level, and conversely, market bottoms are formed amid the deepest pessimism. And in both cases, the majority of investors (the masses) are mistaken and pay for their error by being long at the end of a bull market/beginning of a bear market and short or with no position at the end of a bear market/beginning of a bull market.

Now, as we mentioned in the introduction of the article, we should be friends with the trend but knowing that it will come to an end at some point. This is where we need to differentiate ourselves from mass thinking and be bold enough to consider selling or buying when the market and the news tell us otherwise, even when our own friends may think we're crazy.

This not only applies to trend reversals but also to certain market-affecting events, which are often binary, such as a presidential election, earnings reports, or the announcement of a new product. Here, we need to consider some additional aspects such as psychology and experience.

Let's see an example. Suppose there's a presidential election where one candidate is left-wing and the other is right-wing, and the market clearly prefers the latter. Consequently, it positions itself long because it believes the right-wing candidate will win by a wide margin. Here, there are two issues. First, going against what the rest of the participants think and do can be very profitable if the election doesn't turn out as expected (we'd short, and the market would decline because all the longs would sell their positions in panic over the adverse outcome). 

But even if the right-wing candidate wins, as the market expects, if everyone is already long, then who will buy to push the market higher? Well, no one, which will result in no significant rise and possibly even a decline. 

The first is an example of the 2019 Argentine election, known as “Lunes Negro”, with a 60% drop in the local stock market, the largest drop in its history and one of the top 3 drops in world history. Being a contrarian pays off, doesn't it?

Another example is earnings reports, particularly that of $NVDA this week, where the stock has been rising non-stop for months, and the market approached earnings day with too much fear that things would go wrong. In fact, it was taken for granted that it would be bad and would drag the entire market down (it fell by 10% in the days leading up to it). The result? It beat all estimates and rose by 14% in pre-market trading.

The market always punishes consensus simply because there's no one left on the other side. As Livermore said, ‘There's only one side of the market, and it's not the bullish or bearish side but the right side’.

As you can see, having a contrarian mindset often pays off in the market, but we mustn't fall into the trap of being contrarians just for the sake of it, as going against a clear trend can leave us out of the game. 

Therefore, critical thinking, analysis, and experience are usually crucial when honing this aspect that will bring us many satisfactions.  

This article was partly based on the reading of the book “The Art of Contrary Thinking” by Humphrey B. Neill, a must in your market library!

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Don’t sleep on this market, lots of opportunities to come, see you next week!