US Congress Members and Stock Market Trades
There has been a lot of discussion surrounding the highly successful, and sometimes suspiciously successful, stock market trades made by U.S. elected officials. It is no surprise when we look at the profits of various members of Congress. For example, Representative Brian Higgins achieved a return on investment higher than 200% in 2023, while Representative Nancy Pelosi made ten times her annual salary within four months on a single stock. However, not all Congresspeople possess the same uncanny talent or access to insider information as some suggest, such as the “Wolf of Wall Street” Jordan Belfort.
One recent example of an ill-timed trade comes from Democrat Sri Thanedar, who represents Michigan’s 13th congressional district. Thanedar may have made the worst-timed trade of 2024 among his peers.
Representative Thanedar’s Ill-Timed Trade
On January 23 and 25, 2024, Representative Sri Thanedar went on a selling spree and offloaded stocks from various companies, including well-known technology giants like Apple (NASDAQ: AAPL), electric vehicle (EV) household names like Tesla (NASDAQ: TSLA), and retail blue-chips like Walmart (NYSE: WMT). While these stock sales are interesting in their own right, the most unfortunate trades occurred on February 5.
In early February, Thanedar sold up to $50,000 worth of Litecoin (LTC), up to $250,000 worth of Ethereum (ETH), and up to $500,000 worth of Bitcoin (BTC). Since the trade, BTC has risen by 55.98%, LTC by 33.65%, and ETH by 61.03%. This means that Congressman Thanedar potentially lost out on $452,000 by selling $800,000 worth of cryptocurrency on the high end and $208,000 on the low end by selling $365,000.
Why Is the Crypto Market Rallying?
What makes Representative Thanedar’s trade timing particularly strange is that it occurred shortly after a brief and severe crypto market downturn following the approval of nine spot BTC exchange-traded funds (ETFs) in the U.S. It also happened just before the ongoing bull run that has seen many coins and tokens surge to multi-year highs, with Ethereum, meme coins, and Bitcoin being notable performers.
As of now, BTC is struggling to reach and surpass its all-time high near $69,000. Since the beginning of the year, the coin has risen by 50.63%, with a rapid surge of 55.98% in the last 30 days. However, reaching $69,000 has proven to be a challenge, as Bitcoin retraced to $66,445 after briefly touching above $68,500 within a 24-hour period.
Hot Take: The Risks and Rewards of Trading
The ill-timed trade made by Representative Sri Thanedar serves as a reminder of the risks involved in trading stocks and cryptocurrencies. While some individuals may achieve extraordinary returns on their investments, others may face significant losses due to poor timing or decision-making. It is crucial for traders to carefully analyze market trends, assess risk factors, and make informed decisions.
Additionally, this incident raises questions about potential insider trading or access to privileged information among elected officials. Transparency and ethical behavior are essential for maintaining public trust in government representatives.
As an investor or trader in the crypto market, it is important to stay informed about market movements and trends while exercising caution and making well-reasoned decisions. The crypto market can be highly volatile and unpredictable, so it is advisable to conduct thorough research, seek expert advice, and consider one’s risk tolerance before engaging in trading activities.
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