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- 🥜 How to handle a crash
🥜 How to handle a crash
PLUS: Ethereum ETF Milestone
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GM to all you crypto nuts. Crypto Nutshell #411 swervin’ in… ⛐🥜
We're the crypto newsletter that's more heartwarming than a robot finding love in a post-apocalyptic world... 🤖💛
What we’ve cooked up for you today…
🏦 Ethereum ETF milestone
💥 How to handle a Bitcoin crash
🤑 HODLers keep HODLing
💰 And more…
MARKET WATCH ⚖️
Prices as at 4:45am ET
Only the top 20 coins measured by market cap feature in this section
ETHEREUM ETF MILESTONE 🏦
BREAKING: Ether ETF weekly flow hits positive for the first time since launch
The Ethereum ETFs just had their first positive week. 🥳
In total, the ETH ETFs saw net inflows of $104.8 million for the week.
Here’s the breakdown:
BlackRock ETHA: $188.3 million 🥇
Fidelity FETH: $44.7 million 🥈
Grayscale ETH: $19.7 million 🥉
This first positive week for the Ethereum ETFs came despite $179.9 million in outflows from Grayscale’s ETHE.
However, the ETHE outflows appear to be slowing down considerably…
The week prior saw total outflows of $603 million.
And the chart below compares ETHE outflows to GBTC outflows.
You can clearly see how the ETHE outflows have been WAY more rapid than the GBTC outflows.
(GBTC is Grayscale’s Bitcoin trust that converted to an ETF… We’ve been here before…)
And BlackRock’s own ETH ETF is set to hit the $1 billion milestone this week.
Fingers crossed the ETH ETFs can keep these inflows up for the week coming. 🤞
As it stands, they’ve seen net outflows of $406.4 million since launching.
KEEP YOUR CRYPTO SAFE 🤑
What’s that? You’re still storing your precious coins on an exchange?
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What’s more is that Zengo’s 3FA ensures your account is always recoverable, based on your email account, 3D FaceLock (an encrypted biometric scan), and the Zengo recovery file.
Did we mention it’s completely free and more secure than a hardware wallet…
So what are you waiting for? Join the millions of users who choose Zengo to self-custody their crypto today!
HOW TO HANDLE A BITCOIN CRASH 💥
Bitcoin has once again fallen below $60,000.
With more volatility inevitably on the way, sometimes just holding can be tough.
So how do you handle the constant ups and downs?
Michael Saylor has the answer.
In his latest interview, Saylor was asked the following:
“Michael, I'm curious how you stay calm, cool, collected, and committed to Bitcoin, even during sell-offs. That’s tough for some people… oftentimes their first instinct is to get nervous and hit the sell button. How do you navigate that?”
Saylor’s company, MicroStrategy, currently holds 226,500 Bitcoin.
Every time Bitcoin drops $1,000 in value, they lose $226.5 million dollars. 🤯
So this is a great question.
Here’s Saylor’s answer:
“First of all, Bitcoin's been appreciating at 55% a year for the past 4 years. Bonds are depreciating 5% a year, the S&P is appreciating at about 13% a year… it's pretty obvious you want the 50% return, not the 20% return. It's going to be more volatile, it's going to be higher performance, but that's the future. So I don't get upset because I know we're winning and Bitcoin's winning.”
Saylor was then asked if he bought the dip this week:
“We're buying all the time. We're buying every quarter, we're buying the lows, the mids, the highs. You know, I'll be buying the top forever because I'm expecting Bitcoin will continue to appreciate as digital capital… it's going to be a trend for a long, long time to come.”
So how do you handle dips?
In a nutshell:
Zoom out & extend your time horizon.
When you zoom out, the winner is clear.
Don’t let short term volatility shake you out of long term gains. 📈
HODLERS KEEP HODLING 🤑
Time for a check in on our favourite metric…
The Bitcoin HODL waves! 🌊
Each coloured band shows the percentage of Bitcoin that last moved within that time period.
As the colours get cooler, the age bands get older (purple being the oldest, representing coins last moved more than 10 years ago).
Usually we look at short-term holders when using this metric but today we’re doing something a little different.
We’ll be focusing on coins held by long-term holders (coins held for longer than 6 months.)
Here’s the breakdown:
6m - 12m: 8.23%
1y - 2y: 11.71%
2y - 3y: 7.81%
3y - 5y: 15.51%
5y - 7y: 9.25%
7y - 10y: 4.87%
>10y: 16.67%
That means that ~74.05% of the Bitcoin supply has NOT moved in over 6 months.
Which is absolutely ridiculous when you really think about it…
What’s really surprising here is the percentage of coins held for more than 10 years.
16.67% of the current supply is ~3,290,435 Bitcoin.
Here’s the thing though…
A large percentage of these coins are likely lost forever.
And analysts estimate that Satoshi holds roughly 1.1 million BTC.
It’s still possible that Satoshi could one day spend these coins but it hasn’t happened yet… (15 years since the creation of Bitcoin)
Here’s the main takeaway from this data:
The amount of long-term holders continues to increase with each cycle.
With such a limited amount of Bitcoin for sale, it bodes well for future price action. 🚀
CRACKING CRYPTO 🥜
Tether calls Celsius' lawsuit "baseless" in response to Bitcoin liquidation dispute. Tether Limited, the issuer of the largest stablecoin USDT, has strongly dismissed a lawsuit filed by Celsius Network Limited.
Expect Bitcoin ETF options to launch before 2025. You can expect Bitcoin ETF options to begin trading in the United States before 2025.
Bitcoin Bulls Revisit $100K Year-End Target as BTC Spikes Over $62K. “Regardless of the next 60 days, the bull market will continue along traditional four-year cycle lines with solid gains in October and November,” one trader said.
Hong Kong crypto ETFs face systemic market obstacle, says OSL executive. OSL's Gary Tiu stated that the Hong Kong market has a 'very rich' layer of intermediaries that favor unlisted products as opposed to ETFs.
WHAT WE’RE READING 📚
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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
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 popular altcoin Solana launch? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) March 2020 🥳
Solana was first opened to the public in March 2020, with its first block being created on 16 March 2020.
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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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