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- 🥜 Why Ethereum is tanking
🥜 Why Ethereum is tanking
PLUS: Bull Market Corrections
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GM to all 58,206 of you. Crypto Nutshell #270 racin’ by. 🏎️ 🥜
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What we’ve cooked up for you today…
😮 Ethereum ETFs delayed
🤑 Saylor’s done it again
🐂 Bull market corrections
💰 And more…
MARKET WATCH ⚖️
Prices as at 11:45am ET
Only the top 20 coins measured by market cap feature in this section
ETHEREUM ETFs DELAYED 😮
BREAKING: SEC delays lower expectations of Ethereum ETF approval by May
The SEC has once again delayed Ethereum ETF applications.
The delays impact proposals from VanEck, Ark Invest, Hashdex and Grayscale.
As a result, ETF analyst James Seyffart now believes the Ethereum ETFs will be denied on May 23rd.
The reason that the odds of approval have dropped dramatically is due to the SEC not communicating with ETF issuers.
For the Bitcoin ETFs, there was constant back and forth between the SEC and institutions.
This time around, barely anything…
Even though analysts are calling for them to be denied in May, there’s still optimism around a December approval.
Checkout this twitter post from Bitwise CIO Matt Hougan below.
(Interestingly Bitwise does not have an active Ethereum ETF application with the SEC)
Although approval in May now seems very unlikely, an eventual approval does look inevitable. 🔒
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SAYLOR’S DONE IT AGAIN 🤑
Michael Saylor has done it.
He now owns over 1% of the entire Bitcoin supply.
That is ridiculous.
Yesterday Saylor took to Twitter to announce his latest purchase.
MicroStrategy purchased 9,245 Bitcoin for ~$623 million at an average price of ~$67,382 per Bitcoin.
This brings their total holdings to 214,246 BTC at an average price of $35,160 per Bitcoin.
With this latest purchase, MicroStrategy now holds 1.09% of the total Bitcoin supply.
Immediately following this announcement, Peter Schiff (notorious Bitcoin critic) took the chance to take a dig at Saylor.
But who do you think the better investor is? 🤔
The one that’s returned +390% over the last 12 months or the one that’s returned -8%…
We’re with Saylor on this one.
BULL MARKET CORRECTIONS 🐂
Let’s put this recent correction into context.
If you’re new to crypto, price corrections like these are common. 📉
Historically, bull market uptrends see price corrections greater than -25% from the local high.
We’ve even seen some corrections exceed -50%. 😱
The chart below visually breaks down Bull Market Correction Drawdowns of previous cycles.
The coloured bars coming down from the top of the chart indicate the relative size of corrections from local highs. (the longer the bars, the larger the correction)
Here’s the largest drawdown’s we’ve seen during previous cycles:
🟠 Genesis to 2011: -49.45%
🔴 2011 to 2013: -71.15%
🔵 2015 to 2017: -36.01%
🟢 2018 to 2021: -62.62%
⚫️ 2022+: -20.1% (September 2023)
The current correction is only at -15.38% (no where near as large as previous cycles and not even the largest of this cycle… so far…)
So what’s the takeaway from this data?
Since the FTX lows, the drawdowns have been “small” for Bitcoin’s standard.
This time around the market is much stronger.
Fewer people have been selling and demand has substantially increased.
When in doubt, zoom out. 🔎
CRACKING CRYPTO 🥜
BlackRock launches $100 million tokenized asset fund using Ethereum. On-chain data shows BlackRock's tokenization fund has been seeded with an initial capital of $100 million USDC on the Ethereum blockchain.
SEC hit with sanctions for its ‘gross abuse of power’ in Debt Box case. The SEC was found to have acted in "bad faith," according to a United States district court.
World’s largest pension fund is considering investing in bitcoin. The Government Pension Investment Fund (GPIF) of Japan is looking to invest in illiquidity assets, including bitcoin.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
p.s. all completely FREE
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”)
What is considered the first altcoin? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) Namecoin 🥳
The first altcoin, Namecoin was released in April 2011, three years after Bitcoin; it was designed to be an alternative currency to Bitcoin. Litecoin became the second altcoin in October 2011.
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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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