- Crypto Nutshell
- Posts
- 🥜 Crypto Expert: Sell-Off is coming...
🥜 Crypto Expert: Sell-Off is coming...
PLUS: Cathie Wood Sells
GM to all 31,921 of you. Crypto Nutshell #189 deliverin’ the news. 🗞️ 🥜
We’re the crypto newsletter that's less intense than breaking the laws of space to save humanity from a dying Earth... 🌌🚀
What we’ve cooked up for you today…
😱 Cathie Wood sells Bitcoin?
💔 Crypto sell-off is coming…
👴 Bitcoin age bands
💰 And more…
MARKET WATCH ⚖️
Prices as at 5:00am ET
Only the top 20 coins measured by market cap feature in this section
CATHIE WOOD SELLS BITCOIN? 😱
BREAKING: Cathie Wood’s ARK Invest exits entire Bitcoin position
Cathie Wood’s ARK Invest has sold it’s entire Grayscale Bitcoin Trust (GBTC) position.
However, fear not.
ARK immediately used half of the proceeds to purchase ~$100 million worth of ProShares Bitcoin Strategy ETF. 🤑
ETF analyst Eric Balchunas believes this is a temporary hold, to maintain exposure to Bitcoin.
“ARK is now the second biggest holder of BITO, although again this is a temporary parking spot. They (and institutions generally) use highly liquid ETFs for transitions like this.”
Cathie Wood also explained their reasons for this move:
“There are some tax and regulatory uncertainties still, as part of this process…we don’t know exactly who’s going to be approved and whether they’ve met all of the criteria that the SEC has put before us. We know that we have, but we don’t know if others — including GBTC have. We just don’t know.”
As a reminder, Grayscale has an active spot Bitcoin ETF application with the SEC. So they will likely (if approved) be a direct competitor to ARK Invest’s Bitcoin ETF.
Analysts also believe that ARK will use the sale of GBTC to fund its own Bitcoin ETF (ARKB) when approved. 💰
Cathie Wood & ARK Invest would only do this is they were virtually certain ETF approvals are coming by January 10th.
The Bitcoin ETFs looks like a done deal… 😎
TOGETHER WITH FAST FOOD SECRETS CLUB 🍔
As you can probably tell, we love newsletters.
They’re the most efficient and no B.S way to stay informed on a wide array of topics.
But one newsletter is our personal favourite…
It’s kind of our dirty little secret. 🤫 (don’t tell anyone)
The newsletter? Fast Food Secrets Club
Every 2 days, they’ll send you a 3-minute read detailing:
Menu hacks & tips to get the best deals & bang for your buck 🍪
Secret recipes from the biggest fast food chains 🍟
Coupons, deals & specials at all your favourite restaurants 🌮
As always, they’re completely FREE.
Body slam that subscribe button below & it will automatically add you to their list. You’re wallet will thank-you. (your waist line will not) 🫡
CRYPTO SELL-OFF IS COMING… 💔
ARK Invest CEO & founder Cathie Wood is undeniably bullish on Bitcoin.
Her 2030 bull case price target for Bitcoin is $1.48 million.
However yesterday, she revealed she’s expecting a sell-off. 📉
In an interview with CNBC, Cathie pointed something out:
In anticipation for the Bitcoin ETF, the price of Bitcoin has almost doubled.
Once the ETFs are actually approved, she wouldn’t be surprised to see a sell-off.
“We've had a big anticipatory move here. It wouldn't be surprising if we saw a sell on the news.”
Generally, when there’s a large move upwards in anticipation, once the event happens, prices fall.
“You have a lot of anticipation, the price moves up, the event happens and then especially fast trading organisations sell on the news.”
Angel investor @Crypto_Mckenna weighed in on twitter.
He has 70% - 80% confidence that we will see a 20% to 30% dip.
However, Cathie believes if a sell-off does occur, it will be short lived.
The medium to long term impact of the ETFs will be huge.
“That I think will be a very short-term phenomenon. I think that the institutional push into Bitcoin will be quite significant to the price.”
Bottom Line: Nobody truly knows what will happen to prices once ETFs are approved.
However, volatility should be expected.
If we do indeed see a 20% - 30% sell-off, it will be a blessing.
As we said yesterday, at this point, all dips are huge opportunities. 😇
BITCOIN AGE BANDS 👴
Today we’ll be checking in on the supply of Bitcoin last active 1+ years ago.
This one’s nice and easy to understand. It categorises coins based on how long it’s been since they last moved.
As longer-term investors accumulate coins these metrics will rise. 📈
But, when long-term investors decide to sell, this metric declines. This is due to “older” coins becoming “young” again as they change hands. 📉
Here’s the breakdown for each cohort (compared to what it was 2 weeks ago):
🔴 Supply last active 1+ years ago: 70.21% (down from 70.33%)
🟠 Supply last active 2+ years ago: 57.27% (down from 57.43%)
🟢 Supply last active 3+ years ago: 42.31% (up from 41.91%)
🔵 Supply last active 5+ years ago: 31.25% (down from 31.37%)
Even though we’ve seen minor declines in most of these cohorts, they are all still extremely close to their all-time highs.
Interestingly the 3+ year cohort has increased since the last time we checked in on this metric.
And these investors have seen it all…
Three years ago Bitcoin was ~$30,000.
Since then it’s risen all the way up to $69,000, down to $16,000 and back up to $44,000.
Long-term conviction in Bitcoin is essentially still at an all-time high. 💪
Which is pretty impressive given Bitcoin is up +160% on the year. Still no profit takers…
Prices will have to go WAY higher before a significant amount of long-term HODLers are tempted to sell… 🙅🏼♂️
CRACKING CRYPTO 🥜
FTX faces backlash after proposed estimation of customers' Bitcoin at $16k. FTX's proposed prices for Bitcoin and other digital assets have stirred creditor objections amid its bankruptcy woes.
Hashdex drops new ad spot ahead of potential spot Bitcoin ETF approval. Following its Dec. 20 ad spot featuring a dump truck, Hashdex claimed “Bitcoin’s time has arrived” in a new media campaign.
Judge sides with SEC in Terraform case on securities sales question. The judgment asserts that both Kwon and Terraform offered and sold unregistered securities and the claim is focused on LUNA and MIR tokens.
Binance User Base Grew 30% This Year, Expanding Even After U.S. Legal Settlements. The largest cryptocurrency trading venue added 40 million accounts to 170 million.
WHAT WE’RE READING ✍️
Want to get even smarter? Check these out.
p.s. all completely FREE
|
|
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”)
Which crypto is currently the 4th largest, measured by market cap?(including stablecoins) |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) BNB 🥳
With Solana’s recent price dip, BNB is once again the 4th largest crypto currency with a market cap of ~$49 billion.
GET IN FRONT OF 31,000+ 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.
WANT EVEN MORE KNOWLEDGE? 📚
Hungry for even more free newsletters? Check these out which we subscribe to:
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