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- 🥜 7 Reasons to be Bullish
🥜 7 Reasons to be Bullish
PLUS: Bitcoin survives the outage
Today’s edition is brought to you by TLDR Newsletter - catch up on the latest tech, startup, and coding stories.
GM to all you crypto nuts. Crypto Nutshell #391 cuttin’ the noise... ✂️🥜
We’ re the crypto newsletter that's more heartwarming than a journey to find a missing fish... 🐠🛶
What we’ve cooked up for you today…
🚂 Bitcoin cannot be stopped
🐂 7 reasons to be extremely bullish
🤔 Crypto’s killer app
💰 And more…
MARKET WATCH ⚖️
Prices as at 3:10am ET
Only the top 20 coins measured by market cap feature in this section
BITCOIN CANNOT BE STOPPED 🚂
BREAKING: Crypto community reacts to Windows-CrowdStrike outage as blockchains unaffected
Yesterday’s CrowdStrike outage caused chaos all around the globe.
It’s even being reported as the largest IT outage in history.
Key systems that relied on Microsoft Windows experienced crashes that impacted:
Banks
Hospitals
Media outlets
Transportation such as flights and trains
The list goes on…
But despite this widespread chaos, do you know what wasn’t impacted?
That’s right.
Bitcoin maintained 100% uptime throughout this outage.
And the Bitcoin community was quick to point this out…
This outage really highlighted the benefit of Bitcoin’s decentralisation.
There isn’t a single point of failure with Bitcoin.
Isn’t it crazy how a mistake by one company can impact the world on so many different levels?
Bitcoin also rallied on the news, increasing 4.45% in the last 24 hours.
Briefly surpassing $67,000.
This train won’t be stopped. 🚂
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7 REASONS TO BE EXTREMELY BULLISH 🐂
This is perhaps the most bullish setup crypto has ever seen.
Things are looking real JUICY right now.
That’s the latest out from our very own on-chain analyst, James McGrory.
Today we’ve got something a little different for you…
James McGrory (Crypto Nutshell on-chain analyst) laid out 7 reasons why you should be extremely bullish right now.
Let’s break them down.
1. The German Government is out of Bitcoin 🇩🇪
As you probably know, the German government is out of Bitcoin now.
Over the past 3 weeks, they completely sold off their holdings of ~50,000 BTC.
The key thing here is that this was a one-off event.
The market can now move forward without this selling pressure looming.
2. Bitcoin ETF flows are strong 🌊
Many are underestimating the long-term impact of the Bitcoin ETFs.
They provide a strong passive bid for the market.
And it doesn’t look like they’re slowing down anytime soon.
So far, July has seen $2.15 billion in net inflows.
Compare that with:
~9000 Bitcoin mined in July worth ~$600 million.
3. The US presidential election
Polymarket currently has Trump at a 62% chance of winning the election.
Objectively a Trump presidency is a positive catalyst for crypto, given the recent support his administration has shown towards the industry.
(This is not an endorsement of any presidential candidate - just the facts we’ve been presented)
In stark contrast, in the past the Democrats have been strongly against crypto.
4. Trump speaking at Bitcoin 2024 conference
Following up the previous point, Trump is set to speak Bitcoin 2024 Nashville.
Over the past couple of months Trump has spoken positively of Bitcoin and crypto.
Does he really care about Bitcoin or is he just saying anything for votes?
No one knows for sure…
But regardless, it’s still a BIG deal that a presidential candidate is making a speech at a Bitcoin conference.
Take the above tweet with a grain of salt, no official source has been cited as of yet.
5. FTX is repaying $16 billion to creditors
FTX is set to repay $16 billion (in cash) to those impacted by its bankruptcy
This news went completely under the radar.
But a large chunk of this cash will likely re-enter the market. Leading to a fresh wave of demand.
6. The global liquidity cycle
Bitcoin and crypto is extremely correlated to global liquidity.
Based of the chart below, we can expect a late 2025 cycle top.
7. Ethereum ETFs going live
The spot Ethereum ETFs are set to launch next week.
And industry experts such as Bitwise’s Matt Hougan are predicting $15 billion in inflows in their first 18 months.
This is going to be a huge moment for Ethereum and another step in the right direction for the crypto industry.
Remember, Ethereum is the first ever altcoin to get an ETF…
That may have just opened the door to a whole host of other crypto ETFs such as Solana. 👀
That’s a lot of bullish catalysts…
As Raoul Pal would say, we are entering “the banana zone”.
So sit tight and be patient.
The fun is just about to begin. 😎
CRYPTO’S KILLER APP 🤔
It’s been a while, so why don’t we check in on the stablecoin supply.
Stablecoin’s play an important role in the wider crypto market. They are often used on centralized and decentralized exchanges to purchase other digital assets.
By taking a look at the stablecoin market, we can gauge the demand for digital assets.
The chart below tracks the aggregate change in the total stablecoin market cap.
🟢 Increased stablecoin supply: increased demand and capital inflows into the digital asset space 🐂
🔴 Contractions in stablecoin supply: net capital outflows from digital assets 🐻
The last time we checked in on this metric, the stablecoin market cap was ~$149.93 billion.
Today the aggregate stablecoin market cap is ~$153.31 billion. 📈
And it’s been a roll recently.
Having increased by $1.51 billion in the last two weeks.
In fact, it’s only ~$9.45 billion short of surpassing it’s all-time high.
Stablecoin’s have been killing it this year.
And as you can see from the chart above every week, liquidity continues to pour back into the crypto industry.
As Jeremy Allaire, CEO of Circle (USDC) puts it…
Stablecoin’s might be crypto’s clearest killer app.
“Stablecoins have exploded in scale and use, crypto clearest killer app, unleashing digital dollars in the world, bringing more people into the future onchain economy, and starting to fulfill the promise of banking the unbanked, lower the costs of remittances, and unlocking more seamless cross-border commerce.”
If you’ve ever had to make an international payment, you’d know the pain…
Banks and intermediaries take forever to process transactions and clip a little off the top every chance they get.
Stablecoin’s fix this.
CRACKING CRYPTO 🥜
Centralized global service outage downs planes, trains, banks, 911 services and TV channels. CrowdStrike's Falcon Sensor malfunction highlights the risks of centralized IT, underscoring the need for decentralized solutions to improve security.
Bitcoin oversold after German gov’t sell-off says ARK Invest. ARK Invest says Bitcoin was oversold after the German sell-off. Miner capitulation signals a potential bullish reversal. ETF inflows remain strong despite market volatility.
Bitcoin Tops $67K as Cryptos Rally Amid Global IT Outage; Solana's SOL Leads Altcoins. Friday's crypto rally defied past days' correlation with U.S equities, which continued their losing streak.
Ethereum ETFs Begin Trading on July 23, Cboe Confirms. Cboe has listed five spot Ethereum ETFs to start trading next Tuesday, July 23, including those from Franklin Templeton and Fidelity.
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”)
Memory test! What was the approximate trading volume of the Bitcoin ETFs after 3 days of trading? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: C) $10 billion 🥳
This was a bit of a tough one… The Bitcoin ETFs recorded $10 billion of volume in their first 3 days.
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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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