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- 🥜 Don't sleep on Ethereum
🥜 Don't sleep on Ethereum
PLUS: Bitcoin heading for $10,000?
GM and welcome to The Crypto Nutshell! 🫶 🥜
The crypto newsletter that's more inspiring than a story of an underdog boxer getting a shot at the world title... 🥊🏆
Today, we’ll discuss:
OnlyFans goes in on Ethereum 👙
Is Bitcoin heading for $10,000 💀
Bitcoin halving price impact📈
And more…
MARKET WATCH ⚖️
All price data as of 8:30am ET
Only the top 20 coins measured by market cap feature in this section
ONLYFANS ENTERS ETHEREUM 💃
JUST IN: OnlyFans owner collects $485 million in dividends as firm invests profits into Ethereum.
OnlyFans has seen explosive growth with over 50 million new users signing up to the site in just the last 12 months. In the same period over 1 million new content creators joined its platform. (what has society come to?! 😳)
Users also spent a combined $5.5 billion on the site. Wowzers. 🤯
And now they’ve decided to invest in Ethereum by purchasing just shy of $20 million dollars worth.
Could OnlyFans be positioning itself to integrate blockchain technology into its platform?
Possibly.
Smart contracts could be used in ways that automate payment processes and reduce the need for intermediaries. This could enhance transparency for creators and subscribers.
However that’s just speculation.
It’s not clear what OnlyFans plans to do with this investment into Ethereum, we’ll keep you updated on any further developments.
TOGETHER WITH REKT RADAR
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If you’re not a fan, you can always unsub. Nothin’ to lose. 😎
EXPERT OF THE DAY 💰
Gareth Soloway has a shocking view. Going against the common consensus - he believes Bitcoin is heading to $10,000. 😳
Gareth Soloway is the Chief Market Strategist at In The Money Stocks.
He rose to prominence after he made some contrarian calls that paid off big. For example, he was one of the only technical analysts that flipped bearish on Bitcoin at its all-time high in 2021.
In an interview today, he broke down why despite all the good news flow for Bitcoin on the horizon, there’s one threat looming above its head.
Gareth noted that bitcoin has three major positives going for it:
Bitcoin has become increasingly widely accepted. It’s transcended scrutiny by the SEC and regulators. The same cannot be said about other cryptocurrencies. 🧑⚖
Spot Bitcoin ETF’s are inevitable within the next 12 months. Although we probably won’t see the first accepted for ~6 months, it’s not a matter of IF but WHEN. 💰
The Bitcoin halving. The Bitcoin supply being cut by 50% is undoubtedly bullish for its price. The Bitcoin halving is scheduled for April 16, 2024. ⏰
However, despite all this Gareth argues the one threat for Bitcoin is a risk-off scenario in the stock-market.
If we were to see a continuation of the banking crisis with more bank failures, or higher than expected inflation numbers, this could cause a sizeable drop in the stock market.
As Bitcoin and the stock market have traded in tandem for the past ~3 years, a sharp drop in equities could have a bleed-on effect into Bitcoin.
It’s this scenario in which Gareth see’s us heading back to the lows.
“I think my worst case scenario would be that $9,000 to $10,000 level. I look at max pain where most people would just totally throw up their hands in the air and say: ‘I quit’. It’s probably if we broke that level. But I only think that happens if we get that big stock market collapse.”
Although we can’t tell you if Gareth’s right or not, what we can tell you is that if he is correct… we will be loading up the truck. 🚛 😉
Nutty’s takeaway: I disagree with Gareth here. Here’s why:
If you recall back to the regional banking crisis back in March of this year, what we actually saw was the opposite of what Gareth describes.
Instead of panic & sell-off, we saw a flight to safety with Bitcoin actually increasing in price. Bitcoin actually was looked to as an insurance policy.
On-top of this, we saw last year that the collapse of one of the largest crypto exchanges - FTX - was not enough to bring Bitcoin down to $9,000 - $10,000.
It would take a black-swan level event to get Bitcoin back to its lows.
Let us know what you think at the bottom of today’s newsletter in the poll 👇
ON CHAIN DATA DIVE 📊
Bitcoin is due to hit $148,000 during its next four year halving cycle. That’s the prediction coming out of Pantera Capital. Let’s breakdown their latest Blockchain Letter.
The Bitcoin halving is an extremely important aspect of the Bitcoin Network. We’ve discussed it before but checkout this previous newsletter for a deep dive.
In a nutshell, every 4 years the rewards that miners receive are cut by 50%. This reduces the overall supply of Bitcoin entering the market and has always had a significant impact on price.
Pantera Captial notes “Bitcoin has historically bottomed 477 days prior to the halving, climbed leading into it, and then exploded to the upside afterward.” 🚀
Pantera is betting on the fact that history will repeat itself. This would place December 2022 as the cycle bottom when Bitcoin was ~$16,000.
The next halving is scheduled for April 2024, by then we could see the price of Bitcoin hovering around the $35,000 mark - Pantera believes that we are still on track for this target.
“The next halving is expected to occur April 2024. Since most bitcoins are now in circulation, each halving will be almost exactly half as big a reduction in new supply. If history were to repeat itself, the next halving would see bitcoin rising to $35k before the halving and $148k after.”
Nutty’s takeaway: The chart above makes it pretty clear that history has repeated itself during the previous halving cycles. The price of Bitcoin peaks in the post-halving rally.
It’s important to note that the price increase multiple has been decreasing with each cycle. 2016 was 30.1x, 2020 was 7.8x and 2024 is predicted to be 4.2x.
The halving all comes down to simple supply and demand. Reducing the supply and increasing demand puts positive price pressure on Bitcoin, resulting in explosive price movements. 🚀
CRACKING CRYPTO 🥜
TRIVIA TIME ✍️
According to Glassnode/Ark new “cointime economics” framework, what percentage of the Bitcoin supply is “active”?
A) 40%
B) 70%
C) 50%
D) 60%
Find out the answer at the bottom of this newsletter 😀
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) 60% 🎉
60% of the circulating supply is active, this is equal to 11.63 million Bitcoin. We discussed this
further in yesterdays edition.
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.
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