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GM to all 64,612 of you. Crypto Nutshell #313 lightin’ the way... 🕯️🥜
We’re the crypto newsletter that’s more intriguing than a billionaire vigilante protecting Gotham City from crime... 🦇🌃
What we’ve cooked up for you today…
📉 Bad day to be an ETF
🏦 What’s next for crypto?
🤔 Where are we at?
💰 And more…
MARKET WATCH ⚖️
Prices as at 6:00am ET
Only the top 20 coins measured by market cap feature in this section
BAD DAY TO BE AN ETF 📉
BREAKING: BlackRock Bitcoin ETF sees first outflow day amid record ETF bleed 🩸
The Bitcoin ETFs just had their worst day ever…
Yesterday saw record outflows totalling $563.7 million.
And for the first time ever, every single issuer recorded an outflow.
Rough day to say the least…
Surprisingly the largest outflow came from Fidelity, with $191.1 million in outflows.
Grayscale came in second with $167.4 million in outflows.
Even BlackRock experienced net outflows of $36.9 million
With Bitcoin down over 10% the last 7 days, this was inevitable.
The flywheel works both to the upside and downside.
ETF Store president Nate Geraci put the current situation into perspective.
And ETF analyst James Seyffart also explained that this is just how ETFs work.
(Checkout yesterdays newsletter for that breakdown)
Even though it’s been a rough few days for crypto…
In the “On-chain Data” section we’ll explain why Bitcoin is exactly where it’s supposed to be. 🎯
TOGETHER WITH PHENOM CRYPTO ♟️
One reason we love crypto? The returns. 😍
In a bull market? No other asset can compete. It’s not uncommon to see 5x, 10x or even 100x plus returns.
With the Bitcoin Halving in the past, there’s never been a better time to get in.
That’s why we read The Phenom Crypto.
They share the best kept secrets on the latest DeFi & small-cap crypto trends. 🤫
The best part?
Just like us, they’re completely free.
Slam that big subscribe button and it’ll automatically add you to their list.
If you’re not a fan, you can always unsub. Nothin’ to lose. 🎉
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WHAT’S NEXT FOR CRYPTO? 💸
Crypto is set to make another huge leap into the mainstream.
And it will do it through stablecoins.
That’s the latest prediction out from Matt Hougan.
Matt Hougan is the Chief Investment Officer at Bitwise, the 4th largest Bitcoin ETF issuer.
In his latest investment memo, Hougan explained why stablecoins are poised to make their way into the mainstream.
“The overarching theme of the current multi-year bull market is ‘the mainstreaming of crypto.’ Crypto is moving from an asset class and technology accessed by few to one that is adopted by many.”
The US Bitcoin ETFs have been the biggest driver of cryptos move into the mainstream so far.
Now we’re also seeing other countries such as Hong Kong approve their own Bitcoin & Ethereum ETFs.
But news recently broke out of another mainstreaming event that Matt believes could be as “big as or bigger than” the ETFs (Matt’s words, not ours)
“The big news is that it looks like Congress may actually pass comprehensive stablecoin legislation this year.”
Sounds a little underwhelming right?
But trust us, this is a BIG deal.
Here’s why Matt believes this is going to be HUGE.
Firstly, Maxine Waters (top democrat on the House Financial Services Committee) told Bloomberg that she and Patrick McHenry would soon have a deal on comprehensive stablecoin legislation.
And the deal already has widespread support.
Now, why would the US government be in favour of stablecoins?
Matt explains:
“Stablecoins allow anyone around the world to store their wealth in an asset designed to track the greenback… That helps the dollar maintain its position as the world’s reserve currency. Stablecoins effectively export dollars to the world.”
On top of this, stablecoins are MASSIVE buyers of U.S. Treasuries.
In fact, stablecoins are currently the 16th largest holder of US treasuries in the world.
The mainstreaming of stablecoins has only just begun.
The other day, $65 billion payments giant Stripe announced a new “pay with stablecoins” feature.
Visa also recently launched an onchain analytics dashboard.
These firms are household names. If they’re adopting stablecoins now, more will follow.
So how can you take advantage of the rise of stablecoins? 🤷♂️
Simply invest in the underlying technology:
“You can invest in the “picks and shovels.” In this case, that means Layer 1 blockchains like Etheruem and Solana, which host both stablecoins and the DeFi apps that interact with stablecoins.”
If you’ve ever had to make an international payment, you’d know how painfully slow they are.
Using the old system, you have to wait ~3 days for your payment to settle…
This is why Matt believes stablecoins are the next piece of the puzzle. 🧩
WHERE ARE WE AT? 🤔
Today we’ve got a very interesting chart for you.
We’ll be taking a look at where we are today compared to previous cycles.
(it’ll make recent price action more digestible, trust us)
This charts simply track Bitcoin’s price performance relative to previous cycle lows.
🟢 2015 to 2018 Cycle
🔵 2018 to 2022 Cycle
⚫️ 2022+ Cycle
As you can see, we’re basically in the exact same spot compared to previous cycles.
That is nuts.
This cycle has also been outperforming previous cycles. (it may not feel like it right now but it is…)
The initial price run-up from the ETFs played a huge part in this outperformance.
So what’s the takeaway from this chart? 🤷♂️
Well unfortunately it looks like we’ve got ~6 months of mostly sideways price action ahead of us…
Then we’ll finally have 6 - 12 months of parabolic price movements.
That’s what we can observed has happened during previous cycles.
But remember, past performance isn’t always a clear indicator of what will happen in the future…
But, it’s been spookily accurate so far… 👻
CRACKING CRYPTO 🥜
Bitcoin falls below $57k as $13 billion in leveraged shorts placed on major exchanges. Major support at $50,000 as Binance shows strong buy walls with large orders.
Federal Reserve Holds Policy Steady, Says Progress on Inflation Has Stalled. Hopes for a series of interest rate cuts in 2024 have all but vanished over the past few weeks as both the economy and inflation exhibit unanticipated strength.
Tether just obliterated its former net profit record for a single quarter. Tether's profits were driven by interest earned on US Treasury holdings, as well as market gains on bitcoin and gold.
Solana-to-Bitcoin cross-chain bridge aims for Q3 2024 launch. The cross-chain bridge to Bitcoin is the first of its kind in the Solana ecosystem.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
p.s. all completely FREE (one click subscribe link)
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 Bitcoin ETF currently has the largest amount of assets under management? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) Grayscale GBTC 🥳
Grayscale currently holds 295,169 BTC. BlackRock is closing the gap with 274,462 BTC
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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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