The New "Social Movement" Surrounding Cryptos -- and What It May Mean

April 24, 2022

“The crypto sisterhood makes the Beardstown Ladies look like pikers”

By Elliott Wave International

Both genders have long participated in financial markets but investing and trading had long been considered to mainly be the province of men.

There are notable exceptions — like Hetty Green. Around the turn of the last century, she was thought to be the richest woman in the U.S. and her miserly ways earned her the nickname of the “Witch of Wall Street.”

As society evolved, many more women have become prominent in the field of investing, especially in recent decades.

Yet, even today, when a woman gains prominence in finance, the fact that she’s a “she” gets special mention.

For example, here’s a March 22 news item from The Street:

Crypto Queen Raises $1.5 Billion in Largest Ever Female VC Fund

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Relatedly, a female social movement of sorts has developed around crypto investing.

Here’s another recent news item — this one from the Wall Street Journal (March 11):

Reese Witherspoon and Gwyneth Paltrow Push for Crypto Sisterhood

They are among a wave of female celebrities pitching cryptocurrencies and NFTs to women, saying the unregulated, volatile market is a boys’ club that they can breach.

Of course, it’s perfectly OK for anyone to invest, whether they’re tall or short, rich or of moderate means, experienced or inexperienced and so on.

A point to make, however, is that “social movement” investing rarely ends well. Indeed, the April Global Market Perspective, a monthly Elliott Wave International publication which covers 50-plus worldwide financial markets, mentions what it generally means when an asset class becomes the focus of a cause:

The crypto sisterhood makes the Beardstown Ladies look like pikers: The “cryptocurrency social community targeting women” doesn’t just plan “to make money by issuing its own NFTs.” Its goal is to “right gender imbalances in investing and shape the next chapter of the internet.” Making money in the market is hard by itself. When alternate aspirations get blended in, it almost never works out.

As you might imagine, while the “push for crypto sisterhood” appears to be serving as a contrarian indicator, that doesn’t mean Bitcoin and other cryptos will nosedive tomorrow or next week.

However, this social movement may suggest that the overall mania surrounding cryptos may be closer to an end rather than its beginning.

The message of the Elliott wave structure for major cryptocurrencies is revealing.

You’ll find our Elliott wave analysis of Bitcoin, Ethereum, Cardano, Solana and Polkadot in the “Cryptocurrency” section of the April Global Market Perspective.

If you’d like to learn how to analyze financial markets using the Elliott wave model, you are encouraged to read Frost & Prechter’s Elliott Wave Principle: Key to Market Behavior.

Here’s a quote from this Wall Street classic:

It is our practice to try to determine in advance where the next move will likely take the market. One advantage of setting a target is that it gives a sort of backdrop against which to monitor the market’s actual path. This way, you are alerted quickly when something is wrong and can shift your interpretation to a more appropriate one if the market does not do what you expect. The second advantage of choosing a target well in advance is that it prepares you psychologically for buying when others are selling out in despair, and selling when others are buying confidently in a euphoric environment.

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This article was syndicated by Elliott Wave International and was originally published under the headline The New “Social Movement” Surrounding Cryptos — and What It May Mean. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.