In this report, we will be focusing on decentralized applications often called dapps, defi, stocks, and the state of the digital asset market as we begin to head into the summer months. Welcome to our first post for the Emporium Chronicles. Notes to keep in mind, The Emporium Chronicles will only share the necessary information required to profit from a potential idea. I hope you enjoy our first issue.
Analyzing new Narratives for Opportunity
With summer on the horizon, we had one of the wildest weeks in a long time. We saw significant selloffs in stocks, Elon Musk's new anti-bitcoin narrative, and Bitcoin falling under 50k.
There is a lot to digest as we discuss navigating and profiting from the upcoming volatility and madness. Yes, pure craziness, the supply chain shortage combined with inflation has driven goods up 5%. The attack on the Colonial Pipeline has squeezed Gas supply right before Oil is on the verge of breaking out to new local highs over $70.
History often rhymes. We could be on the verge of seeing a commodities supercycle of the 1970s if things continue down the current path. The following narrative we can potentially profit from is the "Green Agenda" of our energy. As we mentioned, history rhymes, most of the regulatory credits going to Tesla, and this is just our opinion. Also why I believe Musk said what he did the other day to drive down the price of bitcoin for the upcoming institutions and retain his regulatory credit.
Gameplan: We had seen what happened in 2011-2020 when money flooded into solar and wind. Most of it disappeared. Warren Buffet even lost hundreds of million as even he was taken along for a ride. The past shows us a couple of things are most likely happen. It could mean more cyberattack threats to the USA energy grid. The transition will be anything but smooth, possibly driving Oil prices up to over $100. Another solution that even the mainstream "experts" over at CNN and prominent investor Dr. Michael Burry and thought leader Naval have in common. They are all positive about Nuclear Energy/ Uranium.
The energy demand combined with a struggling grid will lead to more blackouts, possible cyberattacks, and another Texas-type event with the solar satellites and wind turbines freezing throughout the country during the transition stage. Eventually, the only option available for a "green" future will be to embrace what technology has finally caught onto—clean, pure nuclear energy. The power generated from a single nugget alone can power homes for months. It is a beautiful thing to see. You can gain exposure in $URA the Uranium ETF, and you can read my report on a very hidden gem called AZURF. A mining company currently worth $0.07.
We currently have a swing trade in Oil as it looks ready to break up over $70. We also have long positions on Uranium mining companies and ETFs.
Bitcoin has seen some selling, here is my analysis from the past week.
The analysis was just an experiment; we mostly see chop and ranging during the summer. Elon Musk currently has a lot of power. We will be monitoring his feed and the actions taken closely.
We also posted a short hedge when bitcoin was around 56800-57,000 in our private trading room. Yes, if you wish to access my thoughts and insights, you can join our live trading room. I believe in brainstorming ideas. Even if one disagrees, we can still learn from them. All important hedges and transparent moves will be alerted to subscribers of the Emporium Chronicles in the future. While we cannot guarantee 100% accuracy, our focus is capital preservation capital growth based on intelligent, skillful logical ideas.
Now you may be wondering what this means for bitcoin in the future? We believe as the economy reopens across the world, a lot of traders will take their summer vacation, drying up even more liquidity than what we have seen so far. The mid 35k target level and ranging until Q4 is a logical forecast. Of course, if we see strength and new information comes along, we will update our thesis. Right now, there is a risk of significant regulatory action against bitcoin in general, which is being combined with today's new FUD by Elon Musk. While we believe the steps they take will outdated for the 2017 era, it could still cause a short-term shock in the market.
Another potential risk is EIP-1559 for ethereum. As it stands, the blockchain is currently plagued with high gas fees, rendering most dapps and defi applications unusable for the vast majority of new participants. With possible risks of a miner revolt, and with them outright saying the update in July will not even fix gas fees, there are strong odds there will be bugs. Why do you think Eth 2.0 has been delayed for so long after all?
One of our active users in our live trading room shared a DEX project on Matic/polygon. With Defi only being a 100+ Billion dollar market cap, there is tremendous upside potential. The project was DFYN, and it has already climbed 200% since the post in our live trading room. However, with eth having difficulties, you should be able to take advantage of even more upside potential and hunt down other alternative blockchains for the time being. The inflow into them should only become more robust.
By early September/October, as Q4 gets underway, we will start to see another growth surge in the market. I believe we will range around 2 trillion in overall cryptocurrency market cap before seeing the surge to over 3 trillion later in the year. The market cap fluctuations should correlate to our bitcoin-ranging thesis.
We will be uploading our next issue of the Emporium Chronicles later in the month. We will cover how to hedge your risk in specific yield farm opportunities on the alternative chains, focusing on more DeFi insights. We are still early, and we will find legit projects. We will take advantage of the early stage while it lasts this year.
Subscribe to learn more we hope to see you all for our next issue.