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- 🥜 Why Crypto lost $61 billion today... 😳
🥜 Why Crypto lost $61 billion today... 😳
PLUS: Bitcoin ETF Imminent
Today’s edition is brought to you by Animus Technologies.
GM to all 20,693 of you. Crypto Nutshell #152 comin’ through. 🐮 🥜
We’re the crypto newsletter that's less enigmatic than a group of passengers on a mysterious train... 🚂🧩
😱 Why Crypto lost $61 Billion today
🧨 Bitcoin ETF Now Imminent…
💰 The accumulation zone
💰 And more…
MARKET WATCH ⚖️
Prices as at 5:00am ET
Only the top 20 coins measured by market cap feature in this section
WHY CRYPTO LOST $61 BILLION TODAY 😱
Breaking: $61 billion in value wiped out as Binance to pay $4.3B to settle US criminal case. Changpeng ‘CZ’ Zhao resigns as CEO and pleads guilty
Binance, the world’s largest crypto exchange, has been criminally charged with breaking sanctions and money-transmitting laws. Binance has agreed to pay a settlement amount of $4.3 billion.
On the back of the news, crypto markets fell over 4%, wiping out over $61 billion in value from the total crypto market cap.
Additionally, Founder Changpeng ‘CZ’ Zhao, pleaded guilty to violating the Bank Secrecy Act.
As a result, CZ has stepped down as CEO of Binance and has agreed to pay a $50 million fine.
Surprisingly, this isn’t a doomsday level event quite like the collapse of FTX. In fact Binance will continue business as normal (while being closely monitored by the U.S government).
In the next section we’ll discuss how this may ironically be a positive for the crypto industry.
"Binance employees knew and discussed that the company was serving thousands of users in sanctioned countries, and they knew that facilitating transactions between U.S. users and users in sanctioned countries would be in violation of U.S. law. But they did it anyway,"
Soon after it was announced that CZ was stepping down, he tweeted this:
Binance’s new CEO, Richard Teng had this to say:
"My focus will be on: 1) reassuring users that they can remain confident in the financial strength, security and safety of the company 2) collaborating with regulators to uphold high standards globally that foster innovation while providing important consumer protections 3) working with partners to drive growth and adoption of Web3,"
Checkout this tweet from hedge fund founder, Travis Kling.
This was posted on June 17, 2023…
Can Travis see the future?
Although on the surface this appears to be terrible news for the market, there is a silver lining.
More on this below…
For more details click here.
TOGETHER WITH ANIMUS 👾
Let’s be real.
There’s probably one main reason you love crypto.
The returns.
Bitcoin is the best-performing benchmark of the decade.
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BITCOIN ETF NOW IMMINENT 🧨
With the Binance news out today, markets took an expected tumble.
However - fret not. There is a silver lining to this cloud.
A spot Bitcoin ETF approval is closer than ever before.
If there’s one thing that markets hate, it’s uncertainty.
Although this resolution is harsh, it does provides clarity to the market.
That’s exactly what Bloomberg Analyst - James Seyffart pointed out.
He believes the news is actually a positive - a potential black swan event hanging over the crypto industry is now gone.
Many crypto analysts were also quick to point out that the resolution now opens the door for the ETF approval:
Will Clemente
Pentoshi
BowTiedBull
On top of this, just yesterday, the SEC held meetings with Grayscale.
There’s also rumours of other ETF applicants meeting with SEC this week.
What does this mean?
It means progress is being made towards approval.
Seyfarrt also reconfirmed the 90% odds of approval by January 10th.
Crypto analyst, Pentoshi, pointed out that a huge takeaway is just how resilient the market has been.
An entire week of bad news and prices are holding up reasonably well.
Our view?
With under 50 days until the ETF deadline and the Bitcoin Halving in 147 days…
All dips should be viewed as opportunities. ✨
THE ACCUMULATION ZONE 💰
Today we’ll be taking a look at the Accumulation Trend Score.
This metric is useful for visualising the current investor sentiment of the market.
Darker colours: A large part of the network has been heavily accumulating coins
Lighter colours: A large part of the network is selling coins or very little accumulation is occurring
Zooming in on October/November this year, you’ll notice that we are currently in a period of very heavy accumulation. 🤑
We can also break this accumulation trend score down by wallet sizes.
Each row in the chart below represents wallet sizes from <1 Bitcoin all the way to >10,000 Bitcoin.
🟦 Net accumulation: investors are deciding to purchase more Bitcoin than they are selling
🟥 Net distribution: investors are deciding to sell more Bitcoin than they are purchasing
Since the start of October, there’s been a notable shift. All investors cohorts are currently accumulating Bitcoin (that large 🟦 section).
The first time this has happened during 2023.
The obvious explanation for this is the hype for the next bull run.
With the halving and ETF approvals so close, there’s really no reason to sell right now.
That’s why we’re seeing the crypto market essentially shrugging off any bad news…
Everyone knows what’s on the horizon. 😎
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? ✍️
Time for a memory test!
Last week, what were the total inflows into crypto ETPs?
A) $1.32 billion
B) $176 million
C) $153 million
D) $198 million
Find out the answer at the bottom of “Meme Corner” below 😀
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: B) $176 million 🥳
Last week crypto ETPs saw inflows of $176 million, bringing the year-to-date total to $1.32 billion.
Checkout yesterday’s newsletter for the full breakdown.
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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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