Bitcoin Hits 'Death Cross'

Today is Tuesday, January 11, 2022.

New to this newsletter? Sign up here.

Bitcoin Hits 'Death Cross' As Price Sinks

The price of Bitcoin dipped below $40,000 at one point on Monday, hitting the cryptocurrency’s “death cross” and sinking below a critical level watched by investors.

Definition: A “death cross” is a technical pattern that indicates an investment downturn. It usually refers to the 50-day moving average falling below the 200-day moving average.

Numbers: Bitcoin’s price peaked two months ago at around $69,000. Since then, the price has declined by 40%. Bitcoin has declined over 10% so far in 2022, the worst start for Bitcoin in a decade.

Catalyst: The selloff likely happened due to the Federal Reserve’s 2022 plans to trim its balance sheet and raise interest rates.

History: Past “death crosses” for Bitcoin signaled further declines on certain occasions. However, there were also times went it meant nothing.

Final Thoughts: Despite the selloff, many investors remain bullish that Bitcoin could reach $100,000 this year.

Notables

Notable Earnings Today: Albertson’s (NYSE: ACI), TD SYNNEX (NYSE: SNX), Kewpie (TYO: 2809), OrganiGram (NASDAQ: OGI).

Notable IPOs Today: Strategy Shares Halt Climate Change ETF (Nasdaq: NZRO), Fintech Ecosystem Development Corp. Class A Common Stock (Nasdaq: FEXD), Broad Capital Acquisition Corp Unit (Nasdaq: BRACU).

Notable Equity Crowdfunding Campaigns Ending Today: Wash Club LA (SMBX), SanMelix Laboratories (StartEngine), Octivity Fitness Collective (StartEngine), Goodwolf (MicroVentures), CheeseButta (SMBX).

Notable Economic Events Today: EIA Short-Term Energy Outlook (12:00 p.m. ET).

Intel Rises Thanks to New CFO

Shares of Intel (Nasdaq: INTC) jumped 3.02% in after-hours trading on Monday after the technology giant announced that David Zinsner will be the company’s new chief financial officer.

Details: Zinsner was most recently the CFO for Micron (Nasdaq: MU). Shares of Micron dropped 1.11% in after-hours trading on Monday.

The Good: Having recently been upgraded by Northland Capital Markets, Intel seems like a good stock for value investors. It has a low price-to-earnings ratio and $17 billion in free cash flow.

The Bad: Profitability levels could be lower for Intel this year.

Final Thoughts: Intel’s earnings release is scheduled for January 26.

Is Bright Health Group’s Future Bright?

Bright Health Group (NYSE: BHG), which had its initial public offering in June 2021, is an insurance technology that is trying to turn this around after a tough year.

Numbers: Shares of Bright Health are down 81% since its public debut. The company is struggling to find support among investors.

The Good: The company is still growing. Last quarter, revenue increased 206%.

The Bad: Bright Health’s medical cost ratio was 103% due to Covid costs, which is bad for any insurance company. The company is still not profitable.

Final Thoughts: Last month, Bright Health solidified its finances by raising $750,000. Is that enough to turn this company around?

Trends to Watch

Going Public: Car-Sharing Service Turo Files for IPO Showing Revenue Jump (Bloomberg)

Dude, You’re Investing in Dell: Buy Some Dell Stock, an Analyst Says. Why Bernstein Is Now Bullish on the PC Maker. (Barron’s)

Potential Home Run: MLB ,Apple Reportedly Have Had 'Substantial Talks' to Broadcast Games for 2022 Season (Bleacher Report)

A Miner’s Market: Bitcoin’s Slump Is Good for Crypto Miners in Long Term, Jefferies Analyst Says (CoinDesk)

Finally: Republic Purchases .Com Domain, Provides Update on Performance, Plans for Future (Crowdfund Insider)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Want more investing tips? Listen to the podcast.

Questions or comments? Hit reply to reach out.