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- 🥜 500,000 Bitcoin
🥜 500,000 Bitcoin
PLUS: Long-term holders are selling?
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What we’ve cooked up for you today…
🏦 Another one
🌄 $500,000 Bitcoin is coming
📉 Selling has begun
💰 And more…
Prices as at 2:45am ET
ANOTHER ONE 🏦
BREAKING: Trump nominates hedge fund manager Scott Bessent as Treasury secretary
Trump’s done it again… (Appointing a crypto advocate into a high level role)
This time, Trump has nominated Scott Bessent to lead the US Treasury.
"Scott is widely respected as one of the World's foremost International Investors and Geopolitical and Economic Strategists. Scott's story is that of the American Dream."
Trump posted the following statement to Truth Social:
In case you have no idea who Scott Bessent is, we’ll quickly go over some of his most notable achievements:
Bessent is best known for time at George Soros’ Soros Capital Management, where he orchestrated a short against the British pound in 1992.
This trade would eventually end up netting Soros a tidy profit of $1+ billion.
Bessent also served as Soros’ chief investment officer from 2011 to 2015.
After moving on from Soros, Bessent cofounded Key Square Capital Management in 2015.
TLDR: He’s a gun.
And with that out of the way…
Here’s what Bessent has previously said about crypto:
“I have been excited about [Trump's] embrace of crypto and I think it fits very well with the Republican Party, the ethos of it. Crypto is about freedom and the crypto economy is here to stay… Crypto is bringing in young people, people who have not participated in markets."
Continuing on, Bessent explains:
“I think everything is on the table with Bitcoin. And to me one of the most exciting things about Bitcoin is for a generation of investors, who post the great financial crisis, have been looking for investment opportunities.”
With Scott Bessent leading the US Treasury…
Suddenly the the odds of a US national Bitcoin reserve becoming a reality have just gone up…
2025 is shaping up to be an extremely bullish year for Bitcoin and crypto.
Just to name a few:
President openly endorses Bitcoin and crypto
High level roles are being filled with crypto advocates (RFK Jr., Howard Lutnick and now Scott Bessent)
Gary Gensler resigning
The most pro-crypto congress ever
National Bitcoin reserve
The list goes on…
How can you not be ridiculously bullish with a list like this?
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$500,000 BITCOIN IS COMING 🌄
Until Bitcoin hits $500,000 - it’s still early.
That’s the latest message out from Matt Hougan.
Matt Hougan is the Chief Investment Officer at Bitwise. They currently have the 5th largest Bitcoin ETF, holding over $4.9 billion in Bitcoin.
When it comes to what traditional finance and institutions are thinking about Bitcoin, Matt’s the guy.
In his latest update to investors, he broke down why until Bitcoin is $500,000, it’s still early.
“I have a message: You’re still early. In fact, you’ll be “early” until bitcoin crosses $500K.”
Why $500,000?
Well Matt believes that when you invest in Bitcoin, you’re making a bet:
Bitcoin will increasingly be accepted as a store of value, one day standing shoulder to shoulder with gold.
“Today gold is an $18 trillion market, and Bitcoin is roughly $2 trillion. That puts the store of value market at roughly $20 trillion. A mature Bitcoin would at a minimum share this market equally with gold.”
With a $10 trillion market cap, Bitcoin would capture 50% of the global store of value market.
It would also make each Bitcoin worth ~$500,000.
However, Matt doesn’t think Bitcoin will stop there:
“But ultimately I think we will go higher. My $500K target is based on Bitcoin eating into gold’s market share, when, in reality, I think it will actually grow the overall market.”
Over time, a $1 million dollar Bitcoin is on the cards:
“Could we see $1 million Bitcoin? Higher? Absolutely. But $500K feels like a good start.”
Is it reasonable to imagine Bitcoin one day standing on equal footing with gold? 🤔
We think it is.
After all, Bitcoin is only the more divisible, portable, scarce, secure, reliable, verifiable, liquid, accessible option.
No biggie. 😉
SELLING HAS BEGUN 📉
Time for a check-in on the Long/Short-Term Holder Threshold.
Here’s how this metric works:
🔴 Short-Term Holders (STHs): coins that have been held for less than 155 days
🔵 Long-Term Holders (LTHs): coins that have been held for more than 155 days
🟥 Short-Term Holder Cost Basis: all coins purchased in this price range are STHs
🟦 Long-Term Holder Cost Basis: all coins purchased in this price range are LTHs
This metric is extremely powerful as we can see exactly what price STHs and LTHs purchased Bitcoin at. 🔎
The LTH / STH threshold is currently at 22nd June 2024, when Bitcoin was ~$64,00.
All coins purchased before this date are classified as LTHs.
All coins purchased after this date are classified as STHs.
Today there is currently 13,740,289 Bitcoin in the hands of LTHs. (69.44% of the circulating supply) 💪
Whereas the amount of coins held by STHs is only 3,160,654. (15.97% of the circulating supply)
And with Bitcoin sitting at around $98,000… by definition, every single long-term holder is sitting on a profit.
And when everyone is sitting on a profit, there’s bound to be sell-offs…
If you take a look at the chart below, you’ll notice that is exactly what we’re seeing right now.
Over the last two weeks, long-term holders have sold ~303,217 Bitcoin. ($29.62 billion at today’s price)
On-chain analyst, Checkmate explains that this is currently the heaviest level of profit taking we’ve seen so far this cycle.
Checkmate also pointed out that the majority of these sell-offs are coming from Bitcoin purchased at $56,000+. (aka the “youngest” long-term holders)
And whilst this immediately sounds like a top signal…
Right now it looks like demand is sufficient in soaking up this sell pressure. (Which is also why we’ve been stuck at around $98,000 for a couple of days)
So the question is:
Why would you be selling your Bitcoin just before $100,000? 🤔
CRACKING CRYPTO 🥜
Coinbase App Gets Left Behind as Memecoin Craze Drives Traders On-Chain. Phantom, a crypto wallet with a steeper learning curve, is ahead of exchange giant Coinbase in the Apple App Store rankings.
WHAT WE’RE READING 📚
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CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
Which cryptocurrency introduced the concept of smart contracts? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: C) Ethereum 🥳
Ethereum introduced smart contracts in 2015, which are generally considered a fundamental building block for decentralized finance (DeFi).
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
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