Chart of the Day - Thursday, May 7th, 2020

Today’s Chart of the Day was shared in an article by Frank Chaparro (@fintechfrank). Earlier today,  a report from Bloomberg revealed that legendary investor Paul Tudor Jones II is long Bitcoin. Paul Tudor Jones is highly respected in the technical community for amassing a multi-billion-dollar fortune by observing price action and riding trends. When he speaks, chart watchers listen! In regards to his Bitcoin position, Jones commented: “Bitcoin reminds me of Gold when I first got in the business in 1976...Gold had just been productized as a futures instrument (like Bitcoin recently) and had enjoyed a heck of a bull market, almost tripling in price. It then corrected almost 50% in nearly two years similar to Bitcoin’s 28-month 80% correction! You can see the similarities in the two charts.” As we know, history never repeats itself exactly, so it’s always good to approach these analog charts with a healthy degree of skepticism. However, his comments on this relatively new asset class are certainly worth considering. For more on this, check out the full article.