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'Pennies: Going In Raw' Podcast Recap: Clover Short Squeeze and The Dogecoin Crypto Craze

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'Pennies: Going In Raw' Podcast Recap: Clover Short Squeeze and The Dogecoin Crypto Craze

Some of the most seasoned stock traders have recently started dipping their toes into trading cryptocurrencies. Many crypto fans and traders feel safer buying crypto now that there are large sums of institutional money in the market.

Despite the influx of institutional money into crypto, Bitcoin (CRYPTO:BTC) and other coins are still susceptible to large, quick drops like we saw over the weekend. This was the topic of the latest "Pennies: Going In Raw" podcast.

"What we just saw last night, Bitcoin having a 14%, 15% drop. I know we talked about it on Wednesday, expecting a pullback from Bitcoin… Coinbase's direct listing didn't go great price-wise," Dan Knight said.

Hugh Henne laid out a couple of different plausible scenarios; that the dip in Bitcoin could be a good time to buy it on a sale at $55,000 a coin, or that the price of Bitcoin could continue to drop as more regulations come in.

"Last night, someone sold 7.6B [of Bitcoin]," Henne added. "This is one of my biggest issues with Bitcoin… I think there's a statistic that 30% of people that are considered ‘Bitcoin Whales' have never sold any of their Bitcoin. Could you imagine if someone wanted to dump $100 billion?"

"This is that kind of middle of the road, not sure if whales start liquidating and we see $35,000 or, people buy the dip and we could see it go all the way up to $75,000."

Henne and Knight went from talking Bitcoin to a coin that has been getting a lot more hype recently: Dogecoin (CRYPTO:DOGE). Knight and Henne got into the key differences between Bitcoin and Dogecoin.

"With Bitcoin, you can buy a Tesla with Bitcoin," Henne said. "You can't buy a Tesla with DOGE."

Henne also talks about how DOGE has an endless supply, thus diluting the asset. With Bitcoin, there is a finite amount of coins that can exist and be exchanged, once all the halvings are finished.

After discussing Dogecoin and Bitcoin, the PGIR guys transitioned to something a little bit more familiar: hot retail stocks. The pair talked about Clover Health Investments (NASDAQ: CLOV), a stock that saw a big short squeeze last Friday.

"We are actually starting to see some runners," Knight said. "The CLOV fiasco on Friday was interesting, I know I made some money on CLOV."

Clover Health opened trading on Friday at $7.36 and got all the way up to $9.90 midday. The stock went up about 33% intraday before coming back down.

"It was an interesting little saga for CLOV, people in the morning saying it had a 120% short float, then it had a solid run," Knight said. "And then it seemed like people were saying no it didn't [have 120% short float] and then the stock reacted to that. But then we got confirmation, I wouldn't be surprised if more news about that came and it continued to run. People like CLOV, Wallstreet Bets likes CLOV and it's oversold." Knight said.

Benzinga is a sponsor of "Pennies: Going In Raw."

 

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