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- 🥜 Bad news for Ethereum
🥜 Bad news for Ethereum
PLUS: Saylor's Endgame
GM to all 57,261 of you. Crypto Nutshell #265 hangin’ out. 🐨 🥜
We’re the crypto newsletter that's more adrenaline-fueled than base jumping off the tallest skyscraper... 🏢🪂
What we’ve cooked up for you today…
😥 More trouble for Ethereum ETFs
🤔 What is Saylor’s endgame?
📉 Bitcoin exchange balances
💰 And more…
MARKET WATCH ⚖️
Prices as at 5:45am ET
Only the top 20 coins measured by market cap feature in this section
MORE TROUBLE FOR ETHEREUM ETFs 😥
BREAKING: Senators pressure SEC’s Gensler not to approve any more crypto ETFs
Some more bad news for Ethereum ETF hopefuls…
Two US senators wrote a letter to Gary Gensler urging him not to approve any more crypto ETFs.
If you’d like, check out the full letter here.
Here’s a snippet of the most important part:
“However vulnerable bitcoin may be to fraud and manipulation, markets for other cryptocurrencies are far more exposed to misconduct. We do not believe that other cryptocurrencies show the trading volumes or integrity to support associated ETPs.”
It’s the same old story we’ve heard from senators over and over again.
To them, crypto is extremely risky. And they see this as a way to protect investors from “fraud and manipulation.”
Coinbase’s chief legal officer, Paul Grewal immediately slammed the congress letter:
“Respectfully Senators, the evidence points exactly the opposite way… ETH’s spot market is deep and liquid– only two S&P 500 stocks have higher notional dollar trading volume.”
The letter claims that other Cryptocurrencies don’t have the trading volume necessary to support an ETF.
Only two S&P 500 stocks have a high trading volume than Ethereum - Tesla and Nvidia…
It’s baffling why congress is so persistent shutting down the crypto industry.
Regardless, we still have high hopes that an Ethereum ETF will be approved eventually.
After all, Ethereum futures ETFs have already been approved…
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In a bull market? No other asset can compete. It’s not uncommon to see 5x, 10x or even 100x plus returns.
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WHAT IS SAYLOR’S ENDGAME? 🤔
Bitcoin is the apex property of the human race.
Why would you ever sell the winner to buy the losers?
That’s the latest message out from Michael Saylor.
Appearing on a Yahoo Finance interview, Saylor was asked what MicroStrategy’s endgame is.
This is what he had to say:
“We think Bitcoin is the highest form of property, the apex property in the world. And it's the best investment asset. So the endgame is to acquire more Bitcoin. Whoever gets the most Bitcoin wins. There is no other endgame.”
The host then questions Saylor’s plan.
If the endgame isn’t to sell, then what’s the point of accumulating Bitcoin?
Using New York City as an example, Saylor makes his point more clear:
“If you've ever talked to a person that owned an apartment in New York City, no one aspires to hold the apartment for a few years, sell the apartment, and move out of New York City. They put it in their will. They give it to their children. And if you ask them, why? They say there's no better place on Earth to live than New York. There is no place up from there.”
Basically Saylor is saying there is no place up from Bitcoin. Bitcoin is THE best asset.
Still confused, the host explains to Saylor that most people who buy assets at some point want to sell the assets at a profit.
Saylor then responds with this all-time classic quote:
“Let me say it a different way. People that use fiat currency as a store of value, there's a name for them. We call them poor..”
Continuing on, Saylor again explains why he’s never selling his Bitcoin:
“We believe that the highest best use of capital is to buy Bitcoin and hold the Bitcoin. Bitcoin is going to appreciate in value faster than the S&P index. It's going to appreciate in value faster than commercial real estate. And so there's no point in selling the winner to buy the losers. And Bitcoin is the winner.”
In Saylor’s eyes, there truly is no second best.
Don’t sell the winner, to buy the losers. 😎
BITCOIN EXCHANGE BALANCES 📉
Today we’ll be taking a look at the amount of Bitcoin available for sale on exchanges.
Here’s how to interpret this metric:
Decreasing exchange balances: Bullish indicator as it signals a shift towards long-term holding 🐂
Increasing exchange balances: Bearish indicator as coins being transferred to exchanges are more likely to be sold 🐻
Currently there is only 2,290,672 Bitcoin available for sale on exchanges.
That’s ~11.66% of the entire circulating supply.
And it marks a decrease of 20,773 Bitcoin since we last checked in on this metric two weeks ago.
In other words, ~$1.48 billion in Bitcoin has been taken out of exchanges in the last two weeks.
Twitter user @bitcoinmunger also posted an interesting chart this morning.
During past bull runs, coins were being sent to exchanges.
This time, coins are leaving exchanges.
Although we are currently seeing a decent move downwards, it looks like it will be short lived.
This time really is different. 😎
CRACKING CRYPTO 🥜
Court rules Craig Wright is not Bitcoin creator Satoshi Nakamoto. In a bench ruling the judge also affirmed that Wright did not write the Bitcoin whitepaper.
Bitcoin mining difficulty reaches new historical high as halving looms. Bitcoin mining difficulty has reached a new all-time high of 84.5 trillion hashes.
Robinhood’s crypto trade volume rose 10% in February. Robinhood’s crypto notional trading volumes in February rose 10% from January, matching a level seen only one other month since the middle of 2022.
WHAT WE’RE READING 📚
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NFTs (non-fungible tokens) are unique cryptographic tokens that exist on a blockchain and cannot be replicated. NFTs can represent digital or real-world items like artwork and real estate.
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