Bitcoin's Wild Weekend
After racing above $60k last week, Bitcoin (BTC) took a dive Saturday night to $52k. The correction caused about $10B in liquidations across various crypto exchanges in a 24hr period – by far the most ever.
So what exactly happened?
Two words: Leverage & Misinformation
As the following stories (mostly FUD) spread across Crypto Twitter and spooked investors... A hash-rate crash after Chinese miners went offline
A suspicious report about the U.S. Treasury Department going after crypto money launders
An upcoming ban in Turkey on using cryptos as currency
Misinterpreted insider sales of Coinbase equity ($COIN) ...A margin cascade triggered that forced liquidations due to over-leveraging.
TL;DR: Traders and other market participants would do well to understand the fundamentals of Bitcoin better, in order to avoid responding irrationally to headlines.
Since the wild weekend, BTC prices have recovered about half of the losses from the low, and leverage-use has been almost completely reset to near 0.
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Ah, This DOGE Thing...
Despite having no real use case, and an inflationary supply (about 10,000 coins are created every minute), Dogecoin (DOGE) continues to pump. The meme-coin is up ~150% on the week and has climbed ~470% since last month.
Typically, this is where we'd share a link to an article or thought-provoking opinion piece but then we figured, as an ode to the coin itself, screw it – there's no point.
To all the DOGE freaks out there, let's chill out. The fact that DOGE is surging (while the rest of the market bleeds) spooks us more than anything else that happened over the weekend.
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PayPal's Venmo Launches Crypto Buying and Selling
Venmo, a P2P payment service that is owned by PayPal, begins its quest for crypto-payment dominance.
Users on Venmo may now instantly buy as little as $1 worth of BTC, Ethereum (ETH), Litecoin (LTC), or Bitcoin Cash (BCH).
This is purely done through the app where customers will also have the ability to use funds from their balance with Venmo, or a linked bank account/debit card.
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Purpose Investments Launches Ethereum ETF
The Purpose Ether ETF (TSX: ETHH) fund will invest directly into physically settled Ethereum — a welcome change from derivative-based funds like Grayscale’s Ethereum Trust. This allows the ETF to accurately reflect the price of Ether without premiums to its net asset value (NAV).
“The Ether in the ETF is held in secure, offline storage, which is also known as “cold” storage because it is not actively connected to the internet. We do use an online or “hot” wallet, but only for transitory purchases when the ETF is buying and selling Ether. The ETF only invests in and holds 100% physically settled Ether.”
The fund’s AUM currently sits at $26.46 million CAD with a NAV of $10.61 — which is priced based on TradeBlock ETX’ Ether spot price. Each share of ETHH represents 0.00355048 Ether and the management fee is fixed at 1.00%.
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The Only Escape Route Left For Your Money
There's a massive market shift coming. And most American's are woefully unprepared...
With all the hysteria going on in today’s “bull market,” a plan for protection is more important now than ever before. It's time to prepare.
This is what I'm doing to protect my family and my finances - I recommend you do the same.
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Yes… I Read the Whitepaper
After years of articles stating that "everything not Bitcoin is a sh*tcoin," Arthur Hayes, the cofounder of Bitmex, seems to have changed his tune and believes that ETH should be worth $10k+ after analyzing past multiples of network revenue.
Say what you will about the man, but his posts are always entertaining and informative.
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Crypto Futures Data Primer
Derivatives, like futures, can get endlessly complex. But even just understanding the fundamentals can give you deeper insight into market dynamics and the forces pulling prices in different directions.
To help better understand crypto futures and analyze the data behind them, check out CoinMetrics' latest in-depth research report: The Crypto Futures Data Primer.
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Silvergate (SI) Exceeds Estimates for Q1 Earnings
Silvergate Capital Corporation (NYSE:SI), which is up about 90% YTD, announced first quarter earnings that exceeded expectations Tuesday.
The crypto-friendly bank, whose clients include Coinbase, Gemini and Kraken, reported that digital currency customer deposits grew from $5 billion during Q4 2020 to $6.8 billion Q1 2021.
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US House Passes Bill to Require Financial Regulators to Set Up Digital Assets Working Group
The U.S. House of Representatives passed several pieces of legislation including a section on digital assets on Tuesday.
Known as the Eliminate Barriers to Innovation Act of 2021, the legislation seeks to set up a digital asset working group with representatives from the SEC and CFTC.
The overarching goal of the legislation seeks to clarify when the SEC has jurisdiction over digital assets, in the case of when they are deemed securities, and when the CFTC has a final say, in the case of when digital assets are classified as commodities.
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Bitcoin is a Trojan Horse For Freedom
At its core, Bitcoin was built to break us free from the existing system. It is the red pill. And all adopters are going to play a part in the revolution, whether they want to or not.
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