Billionaires Are Poor Now 😢
This week we show why billionaires are poor now, crypto regulation affecting you, and celebrate Elon joining WealthUnion.
Welcome to the WealthUnion Insider newsletter. Crypto news, financial market moves, & company spotlights.
What we're covering this week...
- Why billionaires are poor now
- Crypto regulation that affects you
- Your Ethereum address can be "Googled"
- Updated analysis on the crypto market
- Elon joins WealthUnion Comics and a joke
WHY BILLIONAIRES ARE POOR(ER) NOW
In the Bloomberg Billionaire Index's top 25 fortunes, there are nine American technology billionaires, several of whom rank among the wealthiest people in the world. However, according to Forbes, the five tech-focused billionaires below collectively have lost close to $236 billion in net worth since September 2021 due to the stock market sell-off.
Mark Zuckerberg, CEO of Meta Platforms, took the biggest hit of about $76 billion. Elon Musk, CEO of Tesla, the world’s richest man, lost around $63 billion. Jeff Bezos, the founder of Amazon, is worth almost $56 billion less.
Founder of Microsoft, Bill Gates, and the fourth richest man in the world, lost about $28 billion, while Steve Ballmer, the former CEO of Microsoft, saw his wealth drop by around $13 billion.
And they are not alone. The United States of America's national debt has surpassed $32 trillion for the first time in history. If every American adult gave the federal government $100,000 tomorrow, there would still be over $5 trillion in debt left to pay off! So, you are poorer now too!
Sounds scary, right? Not necessarily. Regulatory clarity for crypto will help the industry move forward in the US and Europe.
Congress has introduced multiple pieces of legislation related to cryptocurrencies and blockchain technologies. The legislation includes the Digital Commodity Exchange Act of 2022, the Lummis–Gillibrand Responsible Financial Innovation Act, and the Digital Commodities Consumer Protection Act of 2022.
🤔 THIS WEEK'S CHAIN CHALLENGE
Who is the #1 corporate holder of Bitcoin?
You'll find the answer later on in the newsletter!
Google is getting into the crypto game. No, they’re not launching a native token. Instead, the company is taking a baby step to cozy up to crypto.
That baby step is making Ethereum addresses searchable. So if you head to Google.com and search for an Ethereum address, you’ll see the balance of that address and chain activity.
"Buy when everyone else is selling and hold until everyone else is buying. That’s not just a catchy slogan. It’s the very essence of successful investing."
- J. Paul Getty
📈 THE TRADING CORNER
The market is signaling a potential bottom for Bitcoin. Last Friday, September CPI (Consumer Price Index) numbers were released. The CPI measures the price change for the average urban consumer for a basket of goods and services and is mainly used to measure inflation. There is an 8.2% increase in CPI compared to last year. Compared to August 2022, the rate is a 0.1% decrease. Overall, inflation seems to be improving slightly since the Fed has increased the Fed rate.
Core CPI is a subset of the CPI which removes volatile food and energy prices. It offers a more accurate measure of long-term price changes than CPI. Core CPI came in 0.6% higher vs. August at 6.6% year-over-year. That’s a new 40-year high. Core CPI has been the main focus, as it's a more accurate measure of inflation. The higher Core CPI percentage drove a massive sell-off of stock and crypto at Friday's stock market opening.
In last week's newsletter, we discussed looking for Bitcoin to retest the bear market's all-time-high trendline, which can be found here. The CPI report drove Bitcoin's price right into the trendline, as shown by the white arrow in the chart above. There was a massive reaction to the upside. We believe BTC upside buying pressure will begin from the bullish reaction.
Bitcoin's macro outlook is still undecided. Using price, we can determine areas of support and resistance. These are price levels where buyers or sellers step in to keep Bitcoin's price above or below a price level. We can use these levels to help determine future price action. The bullish retest on the trendline is a good signal, but we are still sitting on our hands until we have confirmation of a trend reversal.
If a macro trend reversal to the upside were to occur, it would be indicated by higher highs in price and higher lows in price on a high time-frame chart. For example, the weekly chart above would require Bitcoin to break $25.2k (the second red line from the bottom), which was the previous weekly major high.
Historically we have seen Bitcoin's 4-year boom and bust cycle highs and lows about one year apart from each other. We are approaching that time frame since the all-time high was Nov 10th of last year. Could this be another repeat in the 4-year cycle to start the next one?
The Dollar Index (DXY) measures the US dollar's strength against a basket of major world currencies. It's been on a parabolic run, up 25% since the low in January 2021.
The surge in demand for US dollars while other global currencies have plummeted is a primary driver in crypto and stocks entering a significant pullback. DXY is starting to signal a major top on the weekly chart.
Relative Strength Index (RSI) is a price oscillator that shows momentum in oversold or overbought assets. It is a widely used technical analysis indicator. RSI helps to help predict changes in price trends. The chart above shows three weekly bearish divergences where the price makes a higher high and RSI makes a lower high.
A reversal in DXY should correlate to WealthUnion's analysis of Bitcoin. When that happens, we expect relief from people hoarding US dollars and a return to investments in risky assets such as stocks and crypto.
How did you like the Insider content this week?
Chain Challenge Answer: Grayscale
654,885 Bitcoin, or 3.12% of the total supply, is held by the Grayscale Bitcoin Trust.
🤪 JOKE OF THE WEEK
Did you hear about the vampire that got into crypto?
No, you didn't because he died when he tried staking!
😂 COMIC OF THE WEEK
That’s a wrap for this week. If you want more, follow us on Twitter (@Wealth_Union)
Our content is for informational purposes only; you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing on WealthUnion.io constitutes a solicitation, recommendation, endorsement, or offer. Learn more.