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- 🥜 3 Reasons why Ethereum explodes in 2024
🥜 3 Reasons why Ethereum explodes in 2024
PLUS: Cathie Wood Selling
GM to all 21,500 of you. Crypto Nutshell #156 rowin’ by. 🛶 🥜
We’re the crypto newsletter more empowering than being chosen by a sword in a stone to rule a kingdom... 🗡️👑
What we’ve cooked up for you today…
🤑 ARK Invest cashes out
☄️ 3 Reasons Ethereum will outperform in 2024
😴 Don’t sleep on Ethereum
💰 And more…
MARKET WATCH ⚖️
Prices as at 6:50am ET
Only the top 20 coins measured by market cap feature in this section
ARK INVEST CASHES OUT 🤑
Breaking: Cathie Wood’s ARK Invest sells part of its Grayscale’s GBTC stake as Bitcoin ETF optimism grows
Cathie Wood’s asset management firm ARK Invest has sold more than 700,000 shares of its Grayscale Bitcoin Trust (GBTC) holdings over the past month. ARK is estimated to have earned more than $10 million from these sales.
GBTC shares have increased by more than 16% over the last month. This is due to increased optimism surrounding the Bitcoin ETFs.
Does this mean Cathie Wood is now bearish on Bitcoin? 😳
Absolutely not.
Despite this large sale, GBTC is still one of the largest holdings in ARK Invest’s Next Generation Internet ETF (ARKW).
So why is ARK Invest selling?
The most likely reason is because ARK Invest has their own spot Bitcoin ETF application.
In fact, they are the first application in line, with their final deadline on January 10th, 2024.
ARK is likely beginning to sell out of the Grayscale Bitcoin Trust in favour of owning shares in their own spot Bitcoin ETF.
Cathie Wood has historically been one of the biggest Bitcoin bulls in the finance world.
With ARK Invests 2030 price prediction for Bitcoin being $1.48 million… That doesn’t look like it’s going to change anytime soon.
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3 REASONS WHY ETHEREUM WILL OUTPERFORM ☄️
Bitcoin is up an impressive 127% year to date.
Whereas Ethereum is up only 72% year to date.
Much of why Bitcoin has outperformed Ethereum in 2023 is due to 2 factors:
Excitement around a spot Bitcoin ETF
Bitcoin halving approaching April 2024
However, 2024 is lining up to be a strong year for Ethereum.
Here’s 3 reasons why Ethereum will outperform in 2024:
Reason 1: Successful Ethereum Merge. 📉
In an interview this week, Ethereum founder, Vitalik Buterin, said this:
“I’m just excited by the fact that there finally is a light at the end of the tunnel… The Merge happened. Scalability solutions are happening.”
Everyone is excited for the Bitcoin Halving, in which supply issuance is cut by 50%.
However last year, Ethereum underwent the Merge. Supply went from inflationary to deflationary.
The Ethereum supply went from increasing at ~3.2% per year to now decreasing at ~0.2% year.
Compare that to Bitcoin’s current inflation rate of 1.7% and its post-halving inflation rate of 0.85%.
We speak a lot on how Bitcoin’s supply dynamics have never been better. But Ethereum’s supply dynamics are as good, if not better.
Reason 2: All attention is currently on a spot Bitcoin ETF approval. 👀
It’s easy to see why the hype is on BTC - the ETF deadline is only 45 days away.
But in 2023, 7 spot Ethereum ETF applications were also filed.
Applicants include financial juggernauts such as BlackRock and Fidelity. As soon as a spot Bitcoin ETF is approved and we are past the Bitcoin halving?
All eyes will turn towards the approval of a spot Ethereum ETF. 👀
Reason 3: Ethereum is no longer being labelled as a security. 🙅🏼
One of Ethereum's biggest risks was that it would be labelled as as a security by regulators.
Michael Saylor said this was one of the reasons he doesn’t even consider Ethereum.
Before 2023, Bitcoin was the only crypto that was labelled a commodity.
However, this year, it appears Ethereum has joined Bitcoin's status as a commodity.
This week the SEC sued Kraken for operating as an unregistered securities exchange. In the lawsuit, the SEC listed 16 cryptocurrencies they believe are securities. The list included coins such as: Solana, Cardano & Polygon.
Missing from that list? Ethereum.
Bottom Line:
These are just 3 reasons as to why Ethereum is set for an explosive 2024. But this is just the tip of the iceberg. 🧊
Other reasons such as:
Ethereum Staking
Increasing use cases
Further upgrades
Amongst many others, are why the future of ETH looks incredibly bright. ☀️
DON’T SLEEP ON ETHEREUM 😴
With all eyes on the upcoming Bitcoin ETF approvals, Ethereum has been going under the radar.
Don’t forget, just last week BlackRock joined the race for a spot Ethereum ETF…
Off the back of this news, Ethereum’s price once again crossed the $2,000 mark.
What’s more is that the amount of Ethereum held on exchanges has dropped to the lowest levels since 2018.
BlackRock filing for a spot Ethereum ETF was HUGE news.
Investors reacted to this news with the same sentiment they had in response to the announcement of BlackRocks Bitcoin ETF.
Exchange balances immediately began to dip as investors pulled coins off of exchanges.
Over the last week, Ethereum exchange balances have dropped by 152,583 ETH to 14.3 million.
Decreasing exchange balances is seen as a bullish indicator as scarcity increases. 🐂
We expect this metric to continue dropping as we head into the crypto bull run of 2024/2025.
Don’t sleep on Ethereum…
Once the Bitcoin ETFs are approved, all eyes will be on the Ethereum ETFs.
Every cycle we see this happen. Bitcoin moves first, then Ethereum, then alt coins. 🔄
CRACKING CRYPTO 🥜
WHAT WE’RE READING ✍️
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CAN YOU CRACK THIS NUT? ✍️
When was Bitcoin’s white paper first published?
A) January 2009
B) July 2015
C) October 2008
D) October 2011
Find out the answer at the bottom of “Meme Corner” below 😀
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: C) October 2008 🥳
In October 2008, Satoshi Nakamoto released his groundbreaking paper “Bitcoin: A Peer-to-Peer Electronic Cash System,” to the world.
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