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PLUS: It Happens Overnight
Today’s edition is brought to you by RAREMINTS
GM to all you crypto nuts. Crypto Nutshell #423 sproutin’ up… 🥕🥜
We're the crypto newsletter that's more thrilling than navigating the treacherous waters of the Caribbean with Captain Jack Sparrow... 🏴☠️ 🌊
What we’ve cooked up for you today…
🏦 Yo, what just happened?
💤 It will happen overnight
🌊 Here comes the money
💰 And more…
MARKET WATCH ⚖️
Prices as at 6:05am ET
Only the top 20 coins measured by market cap feature in this section
YO, WHAT JUST HAPPENED? 🏦
BREAKING: Bitcoin price falls below $59K amid broad market rout; Ether slumps almost 10%
There we were… chillin’ at ~$62k…
When suddenly Bitcoin crashed to below $59k.
Ethereum had it even worse, falling ~8.39% in the last 24 hours.
But why?
Why did crypto suddenly crash?
Well we’ve done some digging and unfortunately the answer isn’t really clear. 😢
But what’s clear is the HUGE amount of liquidations the crypto market experienced from this sudden drawdown.
In the last 24 hours, over $100 million in leveraged ETH positions have been wiped out.
And over $95 million in BTC positions.
And while we can’t point fingers at a singular reason for the crash…
BTC Markets crypto analyst Rachael Lucas believes it’s a combination of factors:
“There isn't a single catalyst for today’s downturn in the crypto markets, but it seems to be a combination of factors… Technical indicators show that the U.S. Dollar Index (DXY) is oversold on the daily chart, which could suggest a potential rebound in the dollar, traditionally leading to downward pressure on risk assets like cryptocurrencies.”
Lucas also added that the sudden downturn could be due to the “September effect”.
Historically September has been the stock markets worst performing month.
It’s an odd phenomenon, and you can read more about it here if you’re interested.
The Bitcoin ETFs also had a rough today, contributing to the market drawdown.
After 8 straight days of inflows, the Bitcoin ETFs experienced net outflows of $127.1 million.
And Grayscale wasn’t the largest outflow contributor this time.
In fact it was ARK Invest, with $102 million in net outflows for the day…
At the time of writing, the price of Bitcoin has somewhat stabilised at just over $59,000 *touch wood*.
As always, we’ll keep you updated on any major developments.
EASIEST WAY TO 10X YOUR CRYPTO 💎
No one in the crypto industry wants to admit this, but most retail traders lose money. 😱
While those late to the party finally get in, project founders, VCs and early investors sell their bags for millions.
That said, there are still hundreds of tokens with 10X potential, you just need to find the right ones.
Crypto is an alpha-driven industry, where those who are early gain outsized returns, often for FREE via airdrops.
If you want to join Raremint’s exclusive community where they break down trending crypto news, hand-pick new tokens with 10X potential and share ALL of their trades, click on THIS LINK here. Or keep scrolling, the choice is yours.
IT WILL HAPPEN OVERNIGHT 💤
One day you will go to bed. 🛌
You will then wake up to a $1 million dollar Bitcoin.
It will 10x overnight.
That’s the prediction out from Peter Dunworth.
Peter Dunworth is the founder of The Bitcoin Advisor, a family office that buys Bitcoin for high net worth families.
In his latest interview, Peter broke down why Bitcoin’s price rise will be gradual, then all at once.
“I think we go to bed and then we wake up to a price of Bitcoin being set at $1 million dollars. It jumps 10x overnight and people are wondering: ‘Well, what just happened?’”
Now, we already know your question:
How on earth does he think that is reasonable?
Well, Peter believes it all comes down to game theory.
There are multiple central banks around the world that are able to create infinite money. ♾️
They can do this at no cost.
On the other hand, Bitcoin has a hard supply.
Due to proof-of-work, it costs tens of thousands to produce a single Bitcoin.
At some point in the future, central banks will use their printable money, to buy the hardest money on earth.
“Central Banks have an ability to print money by literally holding their finger on the zero key. They have the ability to buy an unlimited amount of Bitcoin on the exchange.”
When you put it like that, it no longer seems as unreasonable.
On a long enough timeline, fiat money will eventually become worthless.
That means there’s no telling as to how high Bitcoin could go… 💭
HERE COMES THE MONEY 🌊
Today we’ll be taking a look at the stablecoin supply.
Stablecoin’s play an important role in the crypto market. (arguably crypto’s “killer” app)
They are often used on centralized and decentralized exchanges to purchase other digital assets. And allow the instant transfer of money between borders.
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 ~$153.57 billion. (4th of August)
Today the aggregate stablecoin market cap is ~$158.48 billion. 📈
That’s an increase of $4.91 billion over the last two weeks.
And here’s the thing…
From the beginning of May to the start of August, this metric only increased by ~$3.19 billion.
No wonder the crypto market has barely been moving the last few months…
But now things are starting to change.
Capital is flowing back into the space at a pace we haven’t seen since April this year. 🌊
CRACKING CRYPTO 🥜
Coinbase's Base network surpasses 1 million daily active addresses, outpaces competitors. Coinbase-backed Base surpasses 1 million daily active addresses in layer-2 milestone.
Trump Releases Fourth Drop of His NFT Trading Cards. The new collection will offer buyers a piece of the candidate’s suit from his debate with President Joe Biden.
Vitalik Buterin breaks down 2023 Ethereum Foundation spending. Ethereum co-founder Vitalik Buterin has provided a breakdown of the Ethereum Foundation's spending in 2023 in response to community queries.
Solana restaking protocol Solayer reaches $80 million valuation with $12 million seed round. Solayer Labs, the developer of the Solana restaking protocol Solayer, has raised $12 million in a seed funding round.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
p.s. all completely FREE (one click subscribe link)
Raremints (link) - Daily crypto news
Bullseye Trades (link) - Daily stock market tips
Crypto Pragmatist (link) - Actionable alpha 3x a week
The Hustle (link) - Get Smarter on Business and Tech
Your Next Breakthrough (link) - Personal growth with Mark Manson
The Neuron (link) - AI trends and tools to keep you ahead
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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”)
How often is Bitcoin's mining difficulty adjusted? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: A) Every two weeks 🥳
Bitcoin is designed to maintain the rate of coin issuance and block confirmation as the network grows or contracts. (10 mins per block)
Difficulty adjusts every 2,016 blocks (~2 weeks).
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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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