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- 🥜 Why they're terrified of Bitcoin
🥜 Why they're terrified of Bitcoin
PLUS: SEC Vs. Coinbase
Today’s edition is brought to you by Animus Technologies.
GM to all 38,432 of you. Crypto Nutshell #209 moonwalkin’ by. 🕺 🥜
We’re the crypto newsletter that's more exhilarating than stumbling upon a treasure map leading to a hidden pirate hoard... 🗺️ 🏴☠️
What we’ve cooked up for you today…
🥊 Coinbase vs the SEC continues
🙅♂️ Banks are terrified of crypto
💪 Bitcoin is just getting started
💰 And more…
MARKET WATCH ⚖️
Prices as at 5:00am ET (sorry for disappearing yesterday 😂)
Only the top 20 coins measured by market cap feature in this section
COINBASE VS THE SEC CONTINUES 🥊
BREAKING: US judge questions SEC limits during Coinbase hearing
On January 17, a court hearing between Coinbase and the SEC took place.
As a quick refresher:
Back in June 2023, the SEC sued Coinbase for operating as an unregistered security exchange.
Coinbase is now presenting arguments for why this case should be dismissed.
Paul Grewal - Coinbase Chief Legal Officer
The SEC argued that buyers of digital assets are purchasing the tokens as investments similar to stocks.
But, Coinbase lawyers disagree. Buyers of digital assets are not signing contracts entitling them to a share of a common enterprise. (like stocks do)
“I’ll tell you this: I think there would have been a lot of surprise to find that an investment contract didn’t have anything to do with a contract.”
Judge Failla then questioned the SEC’s arguments, stating:
“I am concerned… that what you’re asking for is to broaden the definition of what constitutes a security.”
Coinbase closed with the following:
“The Commission’s complaint draws the court into completely unprecedented territory. The SEC should follow enforcement and rulemaking actions that make sense of statutory language and [don’t] twist it upside down. This is several bridges too far and for that reason we ask you to dismiss [the SEC’s case] completely.”
However, Judge Failla declined to make a ruling today. 🧑⚖️
But according to the judge, both sides made valid arguments, meaning this decision could take days to months to deliver.
However, things are looking good for Coinbase. Will we see another L for the SEC?
We’ll keep you posted, stay tuned for more. 😎
TOGETHER WITH ANIMUS 👾
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Animus Technologies is again looking at taking on a limited number of new clients.
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BANKS ARE TERRIFIED OF CRYPTO 🙅♂️
This week, the World Economic Forum is going down in Davos, Switzerland.
It’s an annual gathering of the world’s most powerful figures in politics and finance.
And it’s safe to say - they’re terrified of Bitcoin.
One of the attendees was the CEO of JP Morgan, Jamie Dimon.
In an interview with CNBC, he had some odd word choices for Bitcoin & the crypto space.
Here’s some highlights:
Bitcoin Use Cases
Jamie Dimon pointed out that Bitcoin has limited use cases. Interestingly, they’re all extremely negative.
“There are use cases. AML (anti-money laundering), fraud, tax-avoidance, sex trafficking… that is the end use case.”
Unusual Satoshi Theory
Dimon has a bizarre theory regarding Bitcoin’s maximum supply.
“I think there’s a good chance that… when we get to that 21 million Bitcoins, [Satoshi Nakamoto] is going to come on there, laugh hysterically, go quiet, and all Bitcoin is going to be erased.”
Doesn't Believe in Supply Cap
Dimon also expressed that he doesn’t believe the Bitcoin supply will peak at 21 million BTC.
“How the hell do you know that it’s going to stop at 21 million? I’ve never met one person who told me that they know for a fact.”
Dimon’s Recommendation
Dimon clearly isn’t a fan personally.
“My personal advice would be: don’t get involved.”
It’s clear to anyone that has spent any time looking into Bitcoin, that Jamie has no idea what he’s talking about.
On-chain analyst Will Clemente noted the remarks were embarrassing, especially from the CEO of the world's largest bank.
However, don’t be fooled. Jamie Dimon isn’t a moron. You don’t build a net worth of $1.9 billion by being ignorant or uninformed.
Ex-hedge-fund manager, James Lavish, pointed out that Dimon’s comments were calculated.
Big banks know how disruptive & damaging Bitcoin can be to their businesses.
They aren’t clueless, they’re scared.
Out with the old, in with the new. 🔄
BITCOIN’S JUST GETTING STARTED 💪
Today, we’ll be taking a look at the Market Value to Realized Value (MVRV) Z-Score.
This metric simply answers the question, is Bitcoin overvalued or undervalued?
This is done by comparing the market value to the realized value.
Market Value (Market cap): current price of Bitcoin multiplied by the circulating supply
Realized Value: similar to market value, but uses the price at which each coin last moved
A market top (red zone) is categorised by market value being significantly higher than the realized value.
A market bottom (green zone) is categorised by market value being significantly lower than the realized value. (also the best time to scoop up cheap Bitcoin)
The MVRV ratio exited the green zone in January 2023. (Big up to all who accumulated here)
Since then it’s only been increasing (with some minor bumps along the way).
In fact, the launch of the ETFs saw this metric reach it’s highest level since March 2022. 📈
Using this metric we can confidently say that Bitcoin is nowhere near overvalued today.
Not by a long shot.
We’ve still got a looooonnnngggg way to go before we’re anywhere near the red zone.
Bitcoin’s still getting warmed up. 😎
CRACKING CRYPTO 🥜
VanEck to delist Bitcoin Strategy ETF (futures based), citing performance and investor interest. Asset manager VanEck said its board of trustees approved the liquidation and dissolution of the Bitcoin Strategy ETF on the Cboe BZX Exchange.
After spot bitcoin ETF approval, eyes shift to ether fund decision. The US Securities and Exchange Commission’s approval of spot bitcoin ETFs last week marked a long-awaited milestone.
Ripple CEO cites SEC's 'hostile' crypto stance for not prioritizing IPO. Garlinghouse also confirmed the company had explored markets outside the U.S. for an Initial Public Offering, but plans are on hold for now.
WHAT WE’RE READING ✍️
Want to get even smarter? Check these out.
p.s. all completely FREE
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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”)
Memory test! What was the approximate trading volume of the Bitcoin ETFs after 3 days of trading? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: C) ~$10 billion 🥳
The first 3 days of trading saw total volume of ~$10 billion. We broke this down in yesterday’s newsletter.
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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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