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Are lawmakers good news for Bitcoin now? Maybe the ones who trade stocks. A new disclosure showed that the big outperformer of the market, Nancy Pelosi, made new big tech trades that sum up to around $2,1 million.
The disclosure shook up many traders on Monday. The U.S. House Speaker Nancy Pelosi’s husband, financier Paul Pelosi, made a big purchase of Apple call options (between $750,000 and $1.5 million) and Microsoft call options (between $300,000 and $600,00) on May 24.
The timing of the Pelosi trades (this includes both the lawmaker and her husband) has been described as impeccable or “too impeccable” on various occasions.
On the one hand, the high earnings of Congressional Trading during 2021 raised suspicion about possible insider trading and many people demand the activity to be prohibited to lawmakers, feeling that the disclosures are not enough and Congressional Trades might have an unfair edge because of information politicians could acquire before the general public does.
On the other hand, the famous stock trading outperformance of Pelosi has had traders searching ‘Pelosi stock trades’ on Google for a while now. The search hit a record high in January, Reuters reported. Naturally, these Congressional Trades have turned into a kind of an indicator of the future of the market.
Just a few hours after the disclosure was published, Apple announced the new M2 chip, the start of “the second generation of M-series chips” that comes to improve M1 with better features and performance. Afterward, Apple Inc. stock outperformed competitors rising 0.52% to $146.14.
At the moment, things are looking gloomy for the crypto market, but does Pelosi know something that could mean Big Tech stocks and Bitcoin could catch a break soon?
The M2 announcement did not help the general suspicion about Pelosi’s trades. Twitter users had a lot to say. Although the FDA does not report to congress, some people believe that lawmakers could find out ahead about important announcements of Big Tech companies through their applications for FDA certificates and other regulatory approvals.
— Nev (@RookieBowHunts) June 7, 2022
A few Twitter users called out that “impeccable timing”:
“Nancy Pelosi’s trading is just uncanny. She literally nailed the exact NASDAQ bottom on May 24th buying those $AAPL and $MSFT calls. I mean… She’s 82yo, yet trades options better than a Citadel also running on a dedicated $300m mainframe computer. Bingo or Bridge, this is not.”
This same person also believed that “Nancy & the other successful traders in Congress are the last bastions standing to keep markets going higher over time.” He pointed out that after the Fed Board was banned from trading, bond and markets collapsed. “Show me the incentives, and I’ll show you the result,” he wrote quoting Charlie Munger.
The STOCK act bill is meant to prevent insider trading from Members of Congress. For this reason, lawmakers must disclose all stock transactions (including those of their family members) within 45 days. However, given the continued outperformance of lawmakers, many seem to think this is not enough.
The STOCK act “delays info,” another user tweeted. “If we could see their trades in real-time, we could really level the playing field. I’m all for keeping the insider-trading, and creating instant reporting.“
To many traders, it’s not so much about lawmakers being able to use gathered information to make a trade, but about the unfair edge it gives them. Some investors would like a better chance at nailing those bottoms as well rather than just prohibiting lawmakers from trading.
What About Bitcoin?
This is Pelosi’s sixth transaction report disclosing trades in Apple and other big tech stocks during 2022 alone. Possibly, these trades are not just having “good luck” with the bottoms but also expecting to see a better performance of the markets.
If so, the correlation between Bitcoin and Tech Stocks might be a great highlight to keep in mind. Many analysts have not abandoned their $100k Bitcoin target, they’re merely waiting for the bear market to end. Whether that target turns out to be true this same year or not, we could see the digital coin follow the trails of Pelosi’s oracle trading.
Related Reading | Bitcoin Will Hit $100K When Bear Market Ends, These Analysts Predict
Bitcoin is trading at around $29k in the daily chart | BTCUSD on TradingView.com
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