GM to all 26,643 of you. Crypto Nutshell #173 glidin’ in. 🦇 🥜
We’re the crypto newsletter that's more heartwarming than a tale of friendship between a boy and his alien friend... 👦🌟
What we’ve cooked up for you today…
🚔 Trump’s latest NFT collection
🪐 Bitcoin is on another planet
🤑 STH profit reaches YTD high
💰 And more…
MARKET WATCH ⚖️
Prices as at 7:10am ET
Only the top 20 coins measured by market cap feature in this section
TRUMP’S LATEST NFT COLLECTION 🚔
BREAKING: Donald Trump pitches ‘Mugshot Edition’ NFTs to his supporters for $99 each
US Presidential candidate Donald Trump has just announced a new NFT collection. The collection focuses on the now infamous mugshot of when Trump was arrested in Georgia.
Checkout the announcement video below (it’s pretty funny that an actual presidential candidate has an NFT collection).
Each of the 47 NFTs can be purchased individually. But Trump has something “special” in store for those who purchase all 47…
“For the first time, we’re creating a real, physical Trump card. Purchase 47 digital cards, and we’ll mail you a beautiful trading card. It is an authentic piece of the suit I wore when I took that now famous mug shot, and it was a great suit, believe me, a really good suit. It’s all cut up, and you’re gonna get a piece out. I’ll be autographing some of them. A true collector’s item.”
That’s right. The “true collector’s item” is a piece of the suit Trump wore in the mugshot. 🤣
Trump’s NFT collection originally launched in December 2022 and was met with criticism and backlash. Regardless the collection still sold out.
This criticism mainly comes from the overall negativity that currently surrounds NFTs.
It’s strange that Trump even launched this NFT collection in the first place…
Considering back in 2019, he tweeted this:
“I’m not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.”
Has Trump changed his mind on crypto?
It’s probably safe to say he has. Otherwise it wouldn’t make sense launching an NFT collection and being against crypto at the same time…
If Trump is elected in 2024, it’ll definitely be interesting to see how this impacts crypto.
TOGETHER WITH THE PHENPM WEEKLY UPDATE ♟️
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BITCOIN IS ON ANOTHER PLANET 🪐
CEO & Founder of ARK Invest, Cathie Wood, gives a monthly video update to investors.
In her latest update, she broke down why Bitcoin is on another planet.
She began by comparing Bitcoin’s year to date returns, to other asset classes.
Bitcoin is in a league of its own.
Cathie believes the outperformance is because we learnt something new about Bitcoin in 2023.
“In March, we learned that Bitcoin is not just a risk-on asset, it is also a risk-off asset.”
In March, we saw the regional banking crisis, which saw the collapse of Silicone Valley Bank, Signature Bank & First Republic Bank.
During the crisis, we didn’t see Bitcoin fall, but instead it increased as investors rushed into something safe.
“Why is it a risk-off asset? It’s a risk-off asset because there’s no counterparty risk… Banks are opaque, whereas the Bitcoin blockchain is transparent.”
Cathie points out it’s this quality, being able to act as a risk-on asset & a risk-off asset, that sets it apart.
“This realisation that - wait a minute - Bitcoin is a risk on-asset and a risk-off asset? That's crazy. We don't have too many of those.”
Cathie finished by pointing out Bitcoin’s supply dynamics are only getting better.
Within the ARK Invest Bitcoin Monthly, we can see a visual representation of this:
Across all cohorts, the amount of Bitcoin supply held is increasing. Imagine what this chart will like in 3, 5 or even 10 years time?
Once an investor comes to understand Bitcoin, they buy & HODL. Never to sell.
I wouldn’t want to bet against an asset class with a holder base that has such fanatical conviction.
That’s why Bitcoin is on another planet. 🪐
STH PROFIT REACHES YTD HIGH 🤑
Today we’ll be taking a look at the Short-Term Holder Unrealized Profit/Loss Ratio. Using this metric we can visualise the level of fear and greed among these newer investors.
A quick reminder that Short-term Holders (STH) are investors who have held for Bitcoin for less than 155 days.
STHs are seen as the most sensitive group of holders to drastic price action.
Here’s how to interpret this chart:
Profit/Loss Ratio > 20: historically indicates an overheated market
Profit/Loss Ratio < 0.05: historically indicates oversold conditions
Profit/Loss Ratio ~1.0: indicates break-even and tends to align with support/resistance levels
Taking a look at the chart above, the amount of STH supply currently in profit is at its highest level over the course of 2023.
The October rally exploded this metric from a level of ~1 to well above the overheated level of 20.
When rally’s like this occur, the amount of STHs in profit rapidly increases.
When STHs suddenly find themselves in profit they are more likely to actualise these gains by selling.
Remember that this metric is only showing us “unrealized” profits. The question is did these STHs sell or hold onto their Bitcoin?
We’ll be answering that question in tomorrows newsletter.
CRACKING CRYPTO 🥜
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”)
How often are new Bitcoin created?
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: A) 10 minutes 🥳
Bitcoin adds a new block to the ledger about once every 10 minutes. This means that, on average, about 144 transaction blocks are added to the blockchain every day. Because miners are rewarded 6.25 BTC per block, about 900 BTC coins are minted each day.
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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.