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What we’ve cooked up for you today…

• 🤔 What caused that crash?

• 🤑 How can you not be bullish?

• 🔥 Make it four

• 💰 And more…

MARKET WATCH ⚖️

Only the top 20 coins measured by market cap feature in this section

WHAT CAUSED THAT CRASH? 🤔 

BREAKING: Bitcoin dips to $66K as US moves $2 billion in seized BTC to unidentified wallets

Everything was going so good.

Bitcoin was just about to cross $70,000.

And then it came crashing back down to $66,000. 😱 

So what happened?

Well the US government is to blame…

The US government transferred ~$2 billion worth of seized Bitcoin to two unknown addresses.

Moves like this in the past have often indicated that the assets are likely going to be sold.

Remember the Germany fiasco from a couple of weeks ago? (please don’t be a repeat of that 🙏)

This uncertainty around what the US government plans to do with this Bitcoin is what caused the price to drop like it did.

But…

This situation may have been blown way out of proportion.

Arkham Intelligence notes that the 10,000 BTC transaction represents a deposit to an institutional custody/service.

And that would make sense.

At the beginning of the month, US Marshals Service signed a deal with Coinbase to “safeguard” US government digital assets.

The timing of this transfer also raised a few eyebrows. 🤨

Just two days ago, Donald Trump promised that the government would keep 100% of the 210,000 Bitcoin it holds.

And Senator Cynthia Lummis announced legislation which would make Bitcoin a strategic reserve asset for the US.

As it stands none of the Bitcoin has been sold.

And no one knows for sure what the US government will end up doing with its Bitcoin.

But if they do sell…

Remember it’ll only be a one-off event just like we saw with Germany.

We’ll keep you updated on any major developments. 🫡 

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HOW CAN YOU NOT BE BULLISH? 🤑

A $700,000 Bitcoin is no longer just a dream.

This is the most bullish setup we’ve ever seen.

That’s the latest message out from Mike Novogratz.

In his latest interview, Mike explained why he’s extremely bullish on Bitcoin and crypto.

Firstly, Mike was asked his thoughts on the Republicans plan to create a Bitcoin strategic reserve.

Here’s what he had to say:

The US officially announcing a Bitcoin strategic reserve would be HUGE.

Other countries won’t just sit back and let the US have all the fun.

They’d be forced to announce their own strategic reserves as well.

The prospect of this happening is extremely exciting.

Mike then followed up with the following:

In case you’re wondering, Larry Fink is the CEO and founder of BlackRock (largest asset manager in the world).

BlackRock entering the game has been MASSIVE.

It’s essentially the stamp of approval from TradFi that Bitcoin and Ethereum are legitimate assets.

Now that BlackRock is here, traditional investors have begun to take digital assets seriously.

So we have the US government potentially embracing Bitcoin as a strategic reserve asset.

(Unless they actually sell their Bitcoin as we mentioned in the first section)

And Wall Street has officially entered the game.

Those are two reasons to be extremely BULLISH on the future of Bitcoin and crypto.

The herd is now here. 🐑

MAKE IT FOUR 🔥

The inflow streak continues!

But…

Things have slowed down a little.

Last week Digital asset funds saw inflows totalling $245 million. (fourth inflow week in a row)

This brings year-to-date inflows to a record breaking $20.5 billion.

Bitcoin was the inflow king with $519 million in inflows for the week.

This also brings Bitcoin’s year-to-date inflows to a record $19 billion.

Unfortunately the launch of the Ethereum ETFs saw net outflows of $284.9 million.

And as you likely know by now, Grayscale is to blame…

Last week saw $1.5 billion exit Grayscale’s Ethereum Trust (ETHE).

Cardano and Litecoin experienced net inflows of $1.2m and $0.6m respectively.

Despite heavy Ethereum outflows, the United States still came out on top.

Last week, the US experienced $272 million in net inflows.

Switzerland, Canada and Australia also saw inflows of $40.6m, $2.5m & $1.7m respectively.

Whereas Germany, Brazil and Hong Kong all saw outflows of $59.6m, $5.6m and $3.5m respectively.

As we mentioned in the previous section, the long-term setup for crypto is extremely bullish.

CoinShares notes that the potential of Bitcoin becoming a US strategic reserve asset has likely renewed investor confidence.

Not to mention the increased chances of a September 2024 rate cut. (short-term bullish)

Things are looking real good right now. 😎 

CRACKING CRYPTO 🥜

Ethereum supply turns inflationary as gas fees drop to record lows. Ethereum fees decline due to increased use of Layer 2 scaling solutions and the adoption of blob transactions.

Solana near yearly high after 27% July gain and SOL price ‘double bottom’. Solana liquid staking tokens (LSTs) are boosting onchain activity as the network’s TVL crosses $5.5 billion.

Bitcoin Pulls Back Sharply After Touching $70K. The price of bitcoin still appears poised to close out July with sizable gains after plunging below $54,000 earlier in the month.

Artists sue SEC over whether NFTs are securities, use Taylor Swift tickets as example. A pair of NFT artists sued the SEC as they look for answers from a court on whether NFTs fall under the agency's jurisdiction.

WHAT WE’RE READING 📚

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• 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”)

MEME CORNER 😂

Because what would the crypto world be without its share of memes?

Trivia Answer: A) 10,000 🥳

In 2010, programmer Laszlo Hanyecz famously bought two pizzas for 10,000 BTC.

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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.