- Crypto Nutshell
- Posts
- 🥜 Why Bitcoin is booming: BlackRock
🥜 Why Bitcoin is booming: BlackRock
PLUS: Power Of HODL
Today’s edition is brought to you by High Score Junkie - stay on top of the latest web3 gaming news today!
GM to all 24,185 of you. Crypto Nutshell #166 landin’ nearby. 👽 🥜
We’re the crypto newsletter that's less confusing than waking up with multiple personalities and some unique skills... 🎭 🔍
What we’ve cooked up for you today…
🪨 Why Bitcoin is booming again: BlackRock
💪 The power of the HODL
🕰️ History often rhymes
💰 And more…
MARKET WATCH ⚖️
Prices as at 4:15am ET
Only the top 20 coins measured by market cap feature in this section
WHY BITCOIN IS BOOMING: BLACKROCK🪨
Breaking: BlackRock fine-tunes Bitcoin ETF proposal with critical amendments addressing security, valuation and compliance concerns
Yesterday, BlackRock made 21 notable amendments to its Bitcoin ETF application.
These updates clearly show that BlackRock is committed to offering the highest quality product it can.
From the amendment we can see that BlackRock aims to:
Increase security measures for private keys and BTC holdings
Ensure reliable and transparent valuations
Lay out contingency plans for disruptive events
The amendment also mentions the SEC’s case against Ripple. They use this as an example of potential consequences of BTC being labelled a security.
It was also revealed that a seed capital investor purchased 4,000 shares for $100,000 ($25 per share).
(Another hint that the ETFs are about to be launched)
In reaction to the news, Bitcoin ripped to a new yearly high of $44,448.00.
The spot Bitcoin ETF is closer than ever before…
We’ve only just touched the surface here on these amendments…
If you’d like to read the full breakdown, checkout this article from CryptoSlate.
TOGETHER WITH HIGH SCORE JUNKIE 🎮
There’s a reason we all love crypto… the returns. 😍
As much as we love Bitcoin & Ethereum, unfortunately they’re most likely not going to pull a 100x next bull run. They’ve gotten too big.
Which begs the question…
Where will the next 100x crypto gem come from?
Our bet?
Web3 Gaming.
That’s why we read High Score Junkie. They:
Cover the latest web3 games, news, & protocols (e.g Beam network) ✅
Will be your guide to staying on-top of the latest Web3 gaming trends 🧭
Delivered to you in an easy-to-understand, entertaining read with gaming themed visuals 🪂
The best part?
Just like us, they’re 100% FREE.
Subscribe to High Score Junkie today to stay ahead of the Web3 curve.
Click here to join the web3 gaming newsletter loved by top gaming creators, projects & players in the space 🤑
Future you will thank you.❤️
THE POWER OF THE HODL 💪
Michael Saylor may hold the title of the world’s biggest Bitcoin bull.
But second biggest?
You could make an argument for the president of El Salvador - Nayib Bukele.
Nayib Bukele made Bitcoin an official currency of El Salvador on September 7, 2021.
El Salvador then made their first purchases for a total of 400 Bitcoin, costing $18.7 million dollars. El Salvador continued to make Bitcoin purchases over the following 2 years.
Unfortunately, their first purchases almost perfectly coincided with the 2021 Bitcoin all-time high.
At one point, El Salvador faced a loss of ~37% on their Bitcoin strategy. This equated to a loss of about $45 million dollars on its then $76.5 million worth of holdings.
The mainstream media had a field day:
However, President Bukele stuck to his strategy. He held his conviction.
On November 17, 2022, he announced a new policy.
El Salvador would buy a single Bitcoin each day, indefinitely.
How is his strategy doing today?
President Bukele tweeted this week that his strategy is now back in profit. 🥳
After accumulating 2764 Bitcoin, El Salvador’s Bitcoin portfolio is now worth over $130 million.
They are sitting on a healthy profit of +$3.5 million.
Moral of the story? HODLers always win.
El Salvador’s Bitcoin portfolio
🟢 = Purchases
Dotted Green Line = Cost Basis
The story of Nayib Bukele & El Salvador is a perfect example of why DCA & HODLing is a fantastic strategy.
Even if you time the market poorly (everyone does eventually), if nothing has fundamentally changed & your investment thesis is correct… eventually you’ll win out. 🏆
Our prediction for 2024?
We will see other countries follow in El Salvador's footsteps. (looking at you Argentina 🇦🇷 👀)
HISTORY OFTEN RHYMES 🕰️
Today we’ll be comparing previous Bitcoin cycles to where we are today.
And honestly?
It’s spooky how aligned they are… 👻
Glassnode has created the chart below that allows us to easily compare the cycles of Bitcoin. It simply tracks Bitcoin’s price performance from it’s previous all-time high.
The 2011 to 2013 cycle is excluded from the comparison as Bitcoin was still extremely new and finding its footing.
Here’s the price performance of previous cycles (from ATH) to today in the cycle:
🔴 2013-17: down -42% from ATH
🔵 2017-21: down -39% from ATH
⚫️ 2021-23: down -37% from ATH
Are you seeing how close they are?
Right now they are all within 5% of each other…
We can also compare cycle performance from the other end, the cycle low.
And like the previous chart, price performance between cycles line up extremely close..
Here’s the price performance of previous cycles (from cycle low):
🔵 2015-18: +119%
🟢 2018-22: +128%
⚫️ 2022-23: +146%
Interestingly 2022-23 has had the highest 1 year returns out of the last two cycles.
Now we’re not saying that Bitcoin is going to exactly mirror previous cycles.
But it is kinda insane how well this cycle is lining up with the previous two.
If it continues to line up with the previous cycles, we are in for a BIG 18 months ahead…
We’ll leave you with the classic Mark Twain quote:
“History doesn’t repeat itself, but it often rhymes.”
CRACKING CRYPTO 🥜
WHAT WE’RE READING ✍️
Want to get even smarter? Check these out.
p.s. all completely FREE
|
|
CAN YOU CRACK THIS NUT? ✍️
Beehiiv has just added support for in built trivia questions, select your answer below and you’ll be redirected to the results page. Let’s see how this goes!
When is the SEC’s final deadline for Ark Invest’s Bitcoin ETF? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Give this a watch 🤣
Trivia Answer: C) 10th January 2024 🥳
Ark Invest is first in line with the final decision deadline on 10th January 2024. However analysts are predicting that all ETFs will be approved simultaneously.
GET IN FRONT OF 24,000+ CRYPTO INVESTORS
Advertise with Crypto Nutshell to get your product or brand in front of the crème de la crème of crypto investors. Crypto Nutshell readers are high-income earners who are always looking for unique or interesting offers.
HOW DID WE DO? 🤷
We read every comment submitted in this poll and love to hear what you guys have to say. 😁 (bonus points for suggestions 🍪)
What did you think of today's Newsletter?don't worry, you won't hurt our feelings... 🥲 |
NUTCASE REVIEW OF THE DAY 🔍
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.
Reply