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- 🥜 Why Bitcoin is pumping
🥜 Why Bitcoin is pumping
PLUS: Bitcoin is mispriced
GM to all 33,328 of you. Crypto Nutshell #193 countin’ down. 🧑🏻🚀 🥜
We’re the crypto newsletter that's less heart-wrenching than surviving a post-apocalyptic world with monsters sensitive to sound... 🙉 👾
What we’ve cooked up for you today…
😅 Bitcoin sets new YTD high
🧪 Bitcoin At $45,000 Is Mispriced
🤔 2023 price performance
💰 And more…
MARKET WATCH ⚖️
Prices as at 4:50am ET
Only the top 20 coins measured by market cap feature in this section
BITCOIN SETS NEW YTD HIGH 😅
BREAKING: Bitcoin begins 2024 by rising above $45K
What a start to the new year! 🥳
For the first time in 20 months, Bitcoin has crossed $45,000.
Bitcoin’s price has rapidly risen from $42,000 on January 1, surging over 7% in the last 24 hours. 📈
It’s unclear exactly what caused this sudden price spike.
But we’d bet it had something to do with the ever increasing ETF hype…
Could we see an even bigger price spike on ETF approval day?
Yesterday we asked you:
If Bitcoin hits $142,500 in 2024, will you sell any of your BTC?
And here are the results:
This poll makes one thing clear. The Crypto Nutshell community is filled with diamond hand chads.
The average Crypto Nutshell reader
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BITCOIN AT $45,000 IS MISPRICED 🧪
The worlds biggest institutions are about to spend millions on ads.
All to pump your bags.
At $45,000, Bitcoin is mispriced.
That’s the latest message out from crypto expert, Andrew Kang.
Andrew Kang is a cryptocurrency entrepreneur & investor.
He’s the co-founder of Mechanism Capital, a crypto investment firm.
In his latest tweet, he explained why from launch day, ETF issuers are going to be fighting an all-out war for market share.
It all comes down to ETF fees.
Let’s look at gold ETFs as a comparison. Gold ETFs have:
$120 billion in investment
Average Fee = 0.6%
This means ETF issuers make $720 million per year in fees.
The net present value of these fees is $10 - $20 billion dollars.
It’s likely Bitcoin ETF issuers will make the same, if not more.
This is why Andrew believes, there will be an all-out war.
“From launch day, ETF issuers will be fighting an all-out land grab for $10-20B in future fees where every marketing dollar spent in 2024 is 10x more important than marketing dollars spent in 2025 since once customers choose an ETF, they don't really switch.”
Andrew predicts we are likely going to see a marketing push that will rival the madness of 2021.
“When you think about the size of the opportunity, it shouldn't surprise us to see marketing/ad spend on the scale of 2021 bull madness.”
Andrew’s final point?
"It's going to be a bonanza.”
That’s why even at $45,000, Bitcoin is mispriced. 🚫
HOW WAS 2023? 🤔
Let’s take a look back at Bitcoin’s 2023 price performance.
Bitcoin started the year at $16,553 and rose all the way to $42,225.
That’s a yearly increase of 155.10% btw. 😲
Realized profits for the year came in at just over $91 billion. Whereas realized losses totalled $51.9 billion.
For comparison this was 2022’s stats:
Realized profits: $106.6 billion
Realized losses: $198.5 billion
(A little more profit taking, but WAY more losses realized)
The chart below shows the total realized profit and loss for each day.
The single largest daily loss of $6.15 billion occurred in March. This was around the time Silicon Valley Bank collapsed.
The largest daily profit came in it $2.04 billion during May. Shortly after Bitcoin increased from $20,000 to $30,000.
October really was the turning point of 2023.
Notice how the green bars (above) start getting thicker from October onwards?
It marked the start of Bitcoin’s price surge from $26,000 to $44,000. This period also saw a notable change in investor sentiment as a wave of profit-taking began. (sales were sufficiently met with high demand)
2023 was a great year for Bitcoin. You can’t really complain about a 155% price increase can you?
BUT 2024 is shaping up to be even bigger…
The Bitcoin ETFs are just days away. Plus we’ve got the halving to look forward to in April. 😎
CRACKING CRYPTO 🥜
New year begins with $225M in crypto market liquidations. The cryptocurrency market kicked off the new year slowly as over 99,000 traders were liquidated of approximately $225 million within the past day.
Bitcoin price breaks above $45K, days ahead of potential ETF approval. Bitcoin is trading above $45,000 for the first time in nearly 2 years, amid growing excitement over the potential approval of a spot Bitcoin ETF.
Ethereum Improvement Proposals to watch in 2024. As Ethereum heads for the Dencun hard fork in Q1 2024, here are some of the eagerly anticipated EIPs coming up.
US Congressman Emmer Co-Signs Bill To Fire SEC's Gary Gensler. U.S. Congressman and Majority Whip Tom Emmer announced Thursday he is co-leading an SEC Stabilization Bill to fire Chairman Gary Gensler.
WHAT WE’RE READING ✍️
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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”)
In what year did popular Bitcoin exchange Mt. Gox get hacked? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) 2014 🥳
The prominent crypto exchange was hacked in 2014, which led to 850,000 bitcoin (BTC) being drained.
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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.
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