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- 🥜 Why Bitcoin dumped today
🥜 Why Bitcoin dumped today
PLUS: Bitcoin Exchange Balances
GM to all 38,482 of you. Crypto Nutshell #210 lightin’ it up. 🎆 🥜
We’re the crypto newsletter that's as invigorating as a team of astronauts embarking on a perilous mission to save Earth... 🚀🌌
What we’ve cooked up for you today…
🪨 BlackRock leads the race
😱 Why Bitcoin is crashing
⚖️ Exchange balances
💰 And more…
MARKET WATCH ⚖️
Prices as at 3:00am ET
Only the top 20 coins measured by market cap feature in this section
BLACKROCK LEADS THE RACE 🪨
BREAKING: BlackRock beats spot Bitcoin ETF rivals in race to $1B assets
Who didn’t see this coming?
BlackRock’s IBIT has seen $1.08 billion in inflows on its fourth day of trading. A rare achievement in the ETF world.
After the fourth day of trading, the current leaderboard for assets under management is as follows:
BlackRock IBIT: $1.069 billion 🥇
Fidelity FBTC: $882 million 🥈
Bitwise BITB: $373 million 🥉
ETF analyst Eric Balchunas posted a day 4 summary on Twitter:
*$914 million on Wed
Now, if you’re one of the skeptics who are calling the launch of the Bitcoin ETFs a flop (because the price didn’t immediately moon), ETF analyst James Seyffart has an interesting chart for you.
This is what a successful ETF launch looks like…
Patience is the name of the game here.
Also commenting on this chart, Eric Balchunas pointed out something very interesting.
The first Buffer ETF only did $50m in volume in it’s first week of trading.
BlackRock alone is about to 50x this number. 😱
That sounds like a successful launch to us…
“This is always a good message. Note: the first buffer ETF did $50m in volume and $46m in flows in Week One (which is really good). $IBIT alone is going to do 50x and 20x those numbers = weird to me flop is even a thought in anyone's brain but nonetheless long term view best.”
Zoom out. Ignore the noise. 😎
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WHY BITCOIN IS CRASHING 😱
Why is Bitcoin crashing?
Because that’s what Bitcoin does.
That’s the message from on-chain Bitcoin analyst, Will Clemente.
Today, Bitcoin fell ~5%. At its lowest, it was in the $40,000s.
Crypto Twitter had a meltdown. Anxiety & panic everywhere.
Will Clemente pointed out that everyone needs to take a chill pill.
Will brings up a great point - every bull market has had sharp corrections along the way.
In fact, it’s pretty unusual we haven’t seen an even worse sell-off.
Will also pointed out something crucial: Selling now would be a massive blunder.
Selling just after ETF approvals and 3 months before the Bitcoin halving?
That would be a mistake.
In times when Bitcoin corrects, we refer back to a fantastic quote from Michael Saylor:
“The volatility is the price you pay for the outperformance.”
P.S. This sell-off is likely to be short-lived.
Why?
Jim Cramer is posting bearish tweets:
(For those who don’t know, doing the inverse of Jim Cramer is a near bullet-proof strategy. 😂)
EXCHANGE BALANCES ⚖️
Today, we’ll be taking a look at the amount of Bitcoin available for sale on exchanges.
A decline in this metric is a bullish indicator as it signifies a shift towards long-term holding. 💪
Put simply, Bitcoin can’t really be sold if it’s not on an exchange…
Currently there is only 2,360,087 Bitcoin available for sale on exchanges.
That’s ~12.04% of the entire circulating supply.
The last time we took a look at this metric, the amount of Bitcoin on exchanges was 2,331,482.
That was two weeks ago, before the launch of the Bitcoin ETFs.
And for the Bitcoin ETFs being a “sell the news” event, 28,605 Bitcoin flowing back into exchanges really isn’t that significant.
Especially when you consider the fact that this metric has declined by 864,133 Bitcoin since March 2020. (overall trend towards self-custody)
We expect this metric to continue trending downwards as we approach the Bitcoin halving. 😎
CRACKING CRYPTO 🥜
IRS says controversial $10k reporting rule doesn't currently apply to crypto. The IRS and the Treasury announced on Jan. 16 that controversial new transaction reporting rules do not apply to digital transactions.
NFT volume fell $14.5B in 2023. NFT trading volume in 2023 was less than half of what it was in 2022, sliding from $26.3 billion down to $11.8 billion, says CoinGecko.
Donald Trump vows to ‘never allow’ creation of a CBDC in the United States. U.S. presidential candidate and former president Donald Trump vowed to “never allow” the Fed to create a CBDC.
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”)
Which public company currently holds the most Bitcoin? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) MicroStrategy 🥳
MicroStrategy currently holds the most Bitcoin out of all public companies.
As of today, MicroStrategy holds 174,530 Bitcoin. That’s 10x more than second place Galaxy Digital.
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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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