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- 🥜 A perfect storm
🥜 A perfect storm
PLUS: VanEck Volume Explodes
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We’re the crypto newsletter that won't deceive you like a prestigious magician with a dangerous rivalry... 🎩 ✨
What we’ve cooked up for you today…
🌊 VanEck’s volume goes nuts
📈 It’s simple economics
🤑 Bitcoin’s profitability
💰 And more…
MARKET WATCH ⚖️
Prices as at 4:30am ET
Only the top 20 coins measured by market cap feature in this section
VANECK’S VOLUME GOES NUTS 🌊
BREAKING: VanEck’s Bitcoin ETF notches 1,400% daily trading volume increase
VanEck and WisdomTree’s ETF trading volume absolutely exploded yesterday.
And nobody knows why…
Checkout that trading volume chart posted below:
Out of nowhere, VanEck’s volume increased by over 14x. 😱
That’s ridiculous.
At the time of writing, it isn’t clear what caused this sudden explosion in trading volume.
ETF analyst Eric Balchunas had this to say:
“Still haven't figured out what happened. No one knows. Given how sudden and explosive the increase in number of trades was (500 trades Friday, 50,000 trades today) I'm wondering if some Reddit or TikTok influencer type recommended them to their followers. Feels retail army-ish.”
WisdomTree also experienced something similar.
Their trading volume shot up by 12x out of nowhere. And it’s not clear why.
But the craziness doesn’t stop there.
According to Eric Balchunas, the Bitcoin ETFs had their biggest volume day since day one at ~$2 billion.
It’s looking like the rest of the week will be a HUGE one for the ETFs.
Hold on to your hats. 🎩
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IT’S SIMPLE ECONOMICS 📈
The perfect storm is brewing for Bitcoin. ⛈️
And it’s right around the corner…
Yesterday, Anthony “Pomp” Pomliano joined Fox Business for an exclusive interview.
Pomp is a well known entrepreneur & investor in the crypto space with over 1.6 million followers on Twitter.
During the interview Pomp explained what the halving is and what investors should expect.
Pomp began the interview by breaking down Bitcoin’s current market dynamics:
“What we’ve seen is a demand shock with the ETFs, lots of capital is pouring in. And now we’re going to have a supply shock. Right now there’s 900 Bitcoin a day coming into the market, when the halving occurs that’ll be 450.”
Right now, there’s tons of demand for Bitcoin. (ETFs goin’ crazy)
And the incoming supply is about to be cut in half.
Combining these two factors, you have the perfect storm. ⛈️
The price can only go up.
It’s simple economics.
When asked what price action we can expect before the halving, this is what Pomp had to say:
“There’s been three prior times where the halving occurs and within 18 months we have a new all-time high. Historically, when we’ve hit that halving we haven’t been at a new all-time high price yet… These ETF flows are driving the price higher… If this continues there’s a chance we’ll be near the all-time high before the halving.”
After the last three halvings, Bitcoin set a new all-time high roughly 18 months later.
But remember, just because it happened in the past doesn’t mean it’ll happen in the future.
It is kinda strange how it’s happened three times in a row…
Bitcoin has never broken past it’s previous all-time high before the halving.
That would be unprecedented.
But this time is different. This time we have the ETFs.
It’s definitely a possibility… 👀
BITCOIN’S PROFITABILITY 🤑
Today we’ll be taking a look at the Adjusted Spent Output Profit Ratio (aSOPR).
Although this metric may sound a little confusing, really it’s quite simple. It tracks the sale of every coin and determines whether it was in profit or not.
This is done by comparing the fiat value of a coin when it is first purchased to the fiat value when it is sold.
aSOPR >1: on average, coins are being sold at a profit 🐂
aSOPR < 1: on average, coins are being sold at a loss 🐻
aSOPR = 1: on average, coins are being sold at breakeven 😐
But the neat thing about aSOPR is that coin volume is not considered in the calculation.
This means that whales can’t heavily skew this data by locking in huge profits or losses. Think coins being sold from 2013, etc.
All we’re looking at here is if the transactions was in profit or loss. A simple yes or no.
Today, aSOPR is at 1.028. (significantly higher than two weeks ago)
Ok that’s great but what does this number mean?
Well, it indicates that on average, Bitcoiners have been realising profits.
And it’s been trending higher as the price of Bitcoin increased from $42,000 to $52,000.
An increasing SOPR and rising price is a tell tale sign of an early bull market.
Profits are being realised on chain and demand is sufficient in absorbing these sales.
Bull run - here we come. 🐂
CRACKING CRYPTO 🥜
Top wirehouses will become involved with spot Bitcoin ETFs, Galaxy executive says. A representative from Galaxy predicted that spot Bitcoin ETFs will gain further adoption in the coming months.
BlackRock labels BTC as ‘progress’ in latest spot Bitcoin ETF ad. Asset manager BlackRock has released another Bitcoin ETF advertisement.
Pro-XRP lawyer John Deaton launches bid against Elizabeth Warren. John Deaton will run as a Republican against Senator Elizabeth Warren for the Massachusetts Senate seat.
WHAT WE’RE READING 📚
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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”)
What is the maximum number of Bitcoin that can ever be created? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: C) 21 million 🥳
The maximum total supply of Bitcoin is 21 million.
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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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