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The 86th Hoot
Bitcoin Purchasing Power 💸 + Institutions Bought The Dip 👀
Matt Brimacombe
August 12th, 2024
MORNIN’ ☕️
ONE DAY CLOSER TO THE DAY BITCOIN BREAKS IT’S PREVIOUS ALL TIME HIGH.
ONE DAY CLOSER TO BEING A MILLIONAIRE.
Scatt's Weekly Seeds:
🌱Bitcoin Purchasing Power 💸
🌱Institutions Bought The Dip 👀
🌱A Story on Crypto Pullbacks 📉
🌱ETH Whale Activity On The Rise 🐋
Memes of The Week
Year-to-Date Returns:
Dow: 4.80%
S&P 500: 12.04%
Nasdaq Comp: 11.55%
Bitcoin: 43.11%
Ethereum: 14.79%
Solana: 42.51%
News Breakdown:
The Latest in Crypto:
7-DAY CRYPTO MARKET CAP CHANGE: $5B
CRYPTO INVESTMENT PRODUCT FLOW: $528M
CRYPTO LIQUIDATIONS SURGED ON MONDAY WITH MARKET DOWNTURN
MORGAN STANLEY STARTED OFFERING BITCOIN ETFS TO WEALTHY CLIENTS
COINBASE EXPECTS US TO BE CRYPTO FRIENDLY REGARDLESS OF ELECTIONS
PUBLIC COMPANY SEMLER SCIENTIFIC BOUGHT MORE BITCOIN BRINGING TOTAL STASH TO 900 BITCOIN ($60MIL)
VOLATILITY ON MONDAY HAS ONLY SPIKED THAT HIGH 9 TIMES IN THE LAST 3 DECADES
HEDGE FUNDS PILE BACK INTO BITCOIN CALL OPTIONS DESPITE LIQUIDATIONS
BLACKROCK AND NASDAQ MAKE PUSH FOR OPTIONS ON SPOT ETH ETF
BRAZIL’S REGULATOR APPROVES THE LAUNCH OF THE WORLD’S FIRST SPOT SOLANA ETF
RIPPLE LABS FINED $125M FOR SELLING XRP TOKENS TO INSTITUTIONAL INVESTORS AND RULED NOT A SECURITY
PUTIN SIGNS LAW LEGALIZING BITCOIN MINING IN RUSSIA
TETHER VOWS TO DEFEND ITSELF AGAINST $2.4B LAWSUIT FROM CELSIUS CALLING IT A ‘SHAKEDOWN’
This Week’s Economic Calendar:
Producer Price Index (Tuesday)
Consumer Price Index (Wednesday)
Retail Sales (Thursday)
Housing Starts & Building Permits (Friday)
Bitcoin Purchasing Power Over Time 💸
We always talk about Bitcoin as an INVESTMENT..
And what kind of a return it generates in dollar terms.
But have you ever thought about it’s purchasing power? And compared that to the dollar?
To gold? To the average home price?
Well, the below paints a pretty interesting story.
You can see the rate at which the strength of it’s purchasing power grows, and overtook the USD.
And it did the exact same thing to gold, too.
Think about it all just for a second.
Institutions Bought The Dip 👀
Last week was horrendous.
Well, at least Monday was.
Unemployment coming in higher than expected sparked recession fears, and coupled with the Yen carry trade unwinding ($20T notional value)…
Was a recipe for disaster and crypto took a big hit.
Retail got spooked, but did the institutions?
HELL NO.
In fact, long term Bitcoin holders (more than 12 months) bought over 184,500 Bitcoin worth $11.1B during the dip.
Blackrock, Fidelity and all the other behemoth managers who have Bitcoin ETF… what do you think they did?
HELD & BOUGHT MORE.
Use this as a lesson.
A Story on Crypto Pullbacks 📉
Crypto is super volatile, as we all know.
But just how common are pullbacks like we just experienced?
Well, here are some stories about prior cycles:
In 2013, we had an 82% drawdown right before going up 1
In 2015-16, we had 3x pullbacks: -37%, -41% and -40%
In 2017, we had 4: -34%, -33%, -38%, and -40%
In 2019-20, we had 2: -53% and -63%
AND so far in 2024, we have had 2: -27% and -30%
But look where we are today…
All those pullbacks and we still made it out alive, and are THRIVING like never before.
Pay attention - you will not find opportunities like this going forward.
ETH Whale Activity On The Rise 🐋
It’s always “Bitcoin, Bitcoin, Bitcoin”
But what about it’s younger, more attractive cousin, Ethereum?
Well turns out that during the recent dip, Whales (aka people who hold between 1,000 and 10,000 ETH, baring in mind that is at least $2.6mil) BOUGHT AGGRESSIVELY.
When these figures spike, it is just a matter of time before there is a massive surge upward.
Hold on tight, folks - this next 12 month period is going to be fun.
Crypto Cold Storage Options:
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy, sell or hold any assets or to make any financial decisions. Please be careful and do your own research.