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- 🥜 Why is Bitcoin dumping?
🥜 Why is Bitcoin dumping?
PLUS: Millions in liquidations
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What we’ve cooked up for you today…
😥 What just happened?
🤑 The case for $1 million Bitcoin
⚖️ Ethereum check in
💰 And more…
MARKET WATCH ⚖️
Prices as at 6:10am ET
Only the top 20 coins measured by market cap feature in this section
WHAT JUST HAPPENED? 🤔
BREAKING: Bitcoins dip to $66,000 triggers over $500 million liquidations
So what just happened to crypto?
Why has Bitcoin fallen back down to ~$66,000?
Well we think we have the answer:
Here’s the breakdown (supposedly… there’s no 100% source on this, but @AP_Abacus has proven to be trustworthy in the past):
A fund decided to open a pair trade:
Long Bitcoin (buying Bitcoin as a hedge)
Short MicroStrategy stock (expecting the stock to decrease)
Unfortunately for them, MicroStrategy stock spiked.
From this they were forced to sell their BTC to cover.
With such a large amount of Bitcoin ($1 billion) being dumped on the market, the price crashed.
As a result, over $530 million in liquidations were wiped out in the last 24 hours.
Making things even worse, short-term holders typically panic sell in times like this which makes the price dip even harder.
This is standard procedure for a bull market.
If you’ve been around crypto for a while, you’re probably used to this by now.
BUT, If you’re new to crypto, these sudden price swings can be scary.
It may not seem like it now, but events like this are actually good for the market.
It essentially “resets” the market, getting rid of all the investors that are overleveraged.
An opportunity in our eyes. 👀
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THE CASE FOR $1 MILLION BTC 🤑
Bitcoin can go as high as $1 million…
Possibly this year…
That’s the latest prediction out from Samson Mow.
Samson Mow is the CEO of JAN3, a Bitcoin company aiming to accelerate hyperbitcoinization.
In a recent interview, Mow broke down where he thinks Bitcoin will go in the next few years.
As well as what we can expect to happen in the short-term:
“I think we’ll cool off for a little bit, usually when the alts rally too much there is a cool off. They’re too high up and they need to come back down.”
Safe to say that cool-off has happened.
With Bitcoin down to ~$66,000 at the time of writing.
But here’s the real juicy part.
Mow was asked his price target for this Bitcoin bull run. Here’s what he had to say:
“I think this year we’re going to hit $1 million. If not this year, then next year. It’s coming very soon.”
That’s an extremely bullish price target…
Bitcoin would have to ~15x from where we are today.
Here’s Mow’s logic behind this prediction:
“The whole setup we have right now is perfect for a run-up. You have demand far outstripping supply, and supply about to be cut.”
The Bitcoin ETFs are currently pulling in around 4,000 Bitcoin per day. (that’s a low end approximation, recently it’s been increasing with some days over 10,000 Bitcoin)
Currently there is only ~2.2 million Bitcoin on exchanges.
With just the ETFs alone, it won’t take long before that pool of Bitcoin is drained.
And that’s assuming demand stays constant.
From what we’ve seen and heard recently, the demand from the ETFs is likely going to continue increasing throughout the year.
“Demand is at like 10x now. It’s going to 20x. So the price should react accordingly.”
$1 million Bitcoin by the end of 2024? 🤔
That sounds kinda crazy…
BUT with the current supply and demand dynamics, it’s not outside the realm of possibility.
Let us know your thoughts in the poll at the end of this newsletter. Where do you see Bitcoin ending up this year? 🤷♀️
ETHEREUM CHECK IN ⚖️
Two days ago we took a look at the amount of Bitcoin available for sale on exchanges.
So it’s only fair we check in on Ethereum’s exchange balance today.
As always, here’s how to interpret the chart:
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 13,472,300 ETH available for sale on exchanges.
That’s ~11.26% of the entire circulating supply. (0.4% less than Bitcoin’s percentage)
This effectively puts this metric at an all-time low.
And it just goes to show how good Ethereum’s supply dynamics are right now.🐂
Things are looking real good for Ethereum.
Even better if (when?) the ETFs are approved.
CRACKING CRYPTO 🥜
Grayscale amends Ethereum ETF filing, says investors 'want and deserve' the fund. A Grayscale executive has stated that investors "want and deserve" a spot Ethereum ETF and announced a new regulatory filing to that end.
Dubai’s DIFC passes comprehensive digital asset law, new security law. The Dubai International Financial Centre has passed a new law on digital assets.
US prosecutors seek decades in prison for Sam Bankman-Fried. The former head of FTX will attend a sentencing hearing slated for late March.
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 Bitcoin ETF currently has the largest amount of assets under management? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) Grayscale GBTC🥳
Grayscale currently hold the most amount of Bitcoin at 378,236 BTC. BlackRock comes in at 2nd place with 230,623 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.
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