Who is Getting Bitconned Now?

First and foremost, the new Netflix documentary, "Bitconned," regarding the real life story of Raymond Trapani and his "associates" at Centra during the crypto ICO mania years ago, was highly entertaining and certainly worth the watch. Trapani reminds me of a few guys I knew growing up in Bayonne, New Jersey. And, without giving away the ending, his innate cunning when it comes to the con and weaseling out of consequences made the wild west nature of crypto coins and ICOs his ultimate playground...for a while at least. 

On that note, you may observe that we do not spend too much time here at Market Chess and with Members on crypto, with only certain exceptions. There are, without question, plenty of dedicated crypto analysts, pumpers, hucksters, and also, to be fair, legitimate crypto traders and pundits out there. 

However, from my perch there is more than enough information for us to spend our time analyzing, between equities, commodities, currencies, fixed income, and the like. Hence, we rarely mention crypto. 

Over the 4th of July break, though, Bitcoin and many coins took a shellacking. 

Previously, such as back in late-2021, we saw Bitcoin top out just as the Nasdaq topped out, too. Hence, the reason why I am dedicating this blog post to crypto is because of the previous interplay with growth/tech stocks a crypto. Indeed, a colorable argument can certainly be made crypto and the Nasdaq are much more correlated for intermediate-term cycles than many think--Risk is risk, after all. 

On the monthly chart for GBTC, a rough Bitcoin proxy, below, if this latest breakout proved to be a bull trap, as evidenced by the sharp unwinding this week below the 2021 highs and neckline support, then the Nasdaq should finally begin to crack next week into the CPI print and then a new earnings season.