- Crypto Nutshell
- Posts
- 🥜 The Banana Zone
🥜 The Banana Zone
PLUS: He's back
Today’s edition is brought to you by Exodus.
Trade crypto your way. Fast swaps, thousands of pairs, secure wallet. No account needed. Download Exodus now!
GM to all 64,612 of you. Crypto Nutshell #325 shootin’ our shot... 🏌️🥜
We’re the crypto newsletter that’s more mesmerising than a young boy's journey to a mysterious chocolate factory... 🍫🎩
What we’ve cooked up for you today…
🤑 Guess who’s back?
🍌 The banana zone
🌊 Inflows are back
💰 And more…
MARKET WATCH ⚖️
Prices as at 7:15am ET
Only the top 20 coins measured by market cap feature in this section
GUESS WHO’S BACK? 🤑
BREAKING: GameStop sparked the 2021 memecoin bull run — Will history repeat itself?
Remember back in 2021 when GameStop stock exploded out of nowhere?
Well the man credited for kicking off the $GME short squeeze just returned to Twitter.
Yesterday he unexpectedly posted this:
Roaring Kitty’s first post in 3 years
Roaring Kitty - real name Keith Gill - was at the center of the GameStop short-squeeze ploy.
For those of you who have no idea what we are talking about, here’s a quick recap:
Back in 2021, traders on the subreddit WallStreetBets noticed something.
Wall Street, as well as various hedge funds, had waaay over-leveraged themselves by shorting various stocks.
Reddit user Roaring Kitty noticed this & devised a plan.
If everyone worked together in purchasing one of these stocks, they could push prices higher, causing a short-squeeze.
Wall Street & the greedy hedge funds that were short the stock would be forced to buy-back the stock higher, losing billions of dollars in the process.
Their target?
GameStop. 🎯
(GameStop was one of the most shorted stocks)
With enough traders purchasing GameStop the price rocketed up over 1,000%, wiping out billions in short positions.
Now, back to the present…
Following the 2021 GameStop fiasco, Roaring Kitty had not posted online for years.
Until yesterday.
As soon as Roaring Kitty announced his return, GameStop stock immediately shot up.
From just a single post on X, $GME stock increase by over 90%, again wiping out short-sellers.
With this sudden price increase, over $1.4 billion in short positions were wiped out.
It looks like history is repeating itself…
But why is this important for crypto? 🤔
Well many believe that the GameStop short squeeze (2021) laid the groundwork for a massive surge in crypto.
Take a look at the chart below posted by popular trader Ansem.
Once GameStop stock topped out, Dogecoin 100x’d in just 3 months…
If history does once again repeat itself…
This could be the catalyst that starts the next huge crypto rally.
TOGETHER WITH EXODUS 💰
The crypto bull run is now well underway.
That means 2 things:
Altcoin Season
Self-Custodying your crypto is more important than ever
To make the most of the bull cycle, you need a wallet that’s fast, effortless & secure.
That’s why Exodus is the only wallet you'll ever need:
Storage – access coins and tokens from 50+ supported networks in one, convenient wallet (Bitcoin, Ethereum, Solana etc.)
Swaps – in-app swaps allow users to effortlessly exchange crypto for a number of different tokens (100,000+ trading pairs)
Crypto staking – staking options available for a dozen different tokens
Where do you get Exodus?
Easy - It’s available everywhere. We’re talking mobile apps (IOS & Android), desktop apps and browser extensions. Click here to download it in 2 clicks.
The best part?
It’s completely free..
Ready to join the millions of customers who choose Exodus to self-custody their crypto? Download Exodus now!
THE BANANA ZONE 🍌
Prepare yourself - we’re about to enter “the banana zone”.
That’s the latest message out from Raoul Pal.
In a recent Twitter thread, Raoul broke down what he’s dubbed “the banana zone”.
Raoul explains that Macro Summer and Fall are driven by the global liquidity cycle.
Every 4 years Liquidity rises to debase currency to service debt repayments.
With this in mind, Raoul has created the following chart:
🟩 Macro Spring
🟨 Macro Summer
🟧 Macro Fall
🟦 Macro Winter
As the currency continues to be debased, asset prices “rise” in value.
The chart below overlays the NASDAQ onto the total liquidity index.
You can clearly see how correlated they are…
If we overlay Bitcoin onto the total liquidity index, they are also correlated…
(less so due to Bitcoins insane outperformance during bull markets but the point still stands)
Now this is where you ask yourself:
If both assets are correlated to the total liquidity index, then which one should I invest in?
Well…
The chart below shows the NASDAQ vs Bitcoin…
And since 2012, the NASDAQ has underperformed Bitcoin by 99.93%, that’s ridiculous.
We know which horse we’re backing…
This transition into Macro Summer IS the “banana zone”.
And since Bitcoin has outperformed everything else by a wide margin, the banana zone is WAY more pronounced for crypto.
The chart below shows what happened during the “banana zone” of previous Bitcoin cycles.
The banana zone is characterised by insane upwards price momentum.
Raoul believes this will play out again just as it has every other cycle:
“The odds of this changing significantly are low due to the current debt rollover, the election, and global issues such as China. However, nothing plays out perfectly, and we can't tell the structure or nature of the final leg of Fall, if its a blow-off or stunted cycle.”
That’s the banana zone.
Don’t get distracted, fun times are ahead… 👀
INFLOWS ARE BACK 🌊
Time for our weekly check in on digital asset fund flows. (globally, not just the US ETFs)
And inflows are back on the menu…
For the first time in five weeks, digital asset funds saw inflows totalling $130 million.
As usual, Bitcoin was the focus with $144 million in inflows.
Unfortunately Ethereum once again experienced outflows, totalling $14.4 million.
However Solana, XRP & Litecoin all experienced net inflows of $5.9m, $0.6m & $0.1m respectively.
Regionally, the inflows were concentrated on the US which saw $135 million in inflows.
Whereas Canada, Germany & Sweden all experienced outflows of $20m, $14.9m & $4.8m respectively.
After setting record inflows of $306.5 million during their launch week, the Hong Kong ETFs only experienced inflows of $19.1 million last week.
CoinShares also notes that digital asset fund trading volume has continued to dwindle over the months.
This makes sense as the initial hype of the US Bitcoin ETFs has all but cooled down.
Going forward, we’re likely going to see lower total inflows.
But remember, as we’ve explained before, this is normal behaviour for an ETF (slow but consistent flows)
CRACKING CRYPTO 🥜
Tether CEO Paolo Ardoino defends USDt compliance record in wake of Ripple CEO's comments. Ripple CEO Brad Garlinghouse claimed the US government was targeting Tether.
Hong Kong Bitcoin, Ether ETFs wipe 2 weeks of inflow in a single day. Hong Kong-based spot Bitcoin and Ether ETFs saw record joint outflows on Monday of $39.3 million, wiping all gains made since their April 30 launch.
Solana Meme Coins, GameStop Stock Rocket as 'Roaring Kitty' Returns on X. In addition to common stocks, opportunistic crypto developers issued scores of meme coins on various blockchains to capitalize on the hype.
Stand With Crypto PAC launches as industry interest in campaign funding ramps up. Stand With Crypto launched last summer as an effort to provide crypto fans access to information about policy makers and candidates.
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”)
When did FTX file for bankruptcy? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: A) November 2022 🥳
FTX filed for bankruptcy in November 2022
GET IN FRONT OF 64,000+ CRYPTO INVESTORS
Advertise with Crypto Nutshell to get your product or brand in front of the crème de la crème of crypto investors. Crypto Nutshell readers are high-income earners who are always looking for unique or interesting offers.
HOW DID WE DO? 🤷
We read every comment submitted in this poll and love to hear what you guys have to say. 😁 (bonus points for suggestions 🍪)
What did you think of today's Newsletter?Don't worry, you won't hurt our feelings... 🥲 |
NUTCASE REVIEW OF THE DAY 🔍
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.
Reply