The Hoot #21

Scatt's Seeds for Thought:

🌱 Coinbase's International Hub 🇦🇪

🌱 Turning $250 into $2 million in 5 days 📊

🌱 Apple's Savings Account DOMINATES 🔥 

🌱 Bitcoin Miner Revenue Hits High 💰

Meme of The Week

Year-to-date Market Performance:

• S&P 500: 7.41%

• Dow: 0.46%

• Nasdaq Comp: 17.37%

• Bitcoin: 59.86%

• Ethereum: 49.08%

• Scatt Capital’s Fortune Strategy: 27.72% (Since Inception: 23.38%)

• 7-Day Change in Crypto Market Cap: -$98bn

• CPI came in slightly lower than expected at 4.9% YoY vs. 5.0%. This pushed stocks slightly higher. This means that interest rates are higher than inflation... rate cuts incoming

• PPI also came in slightly lower than expected at 2.3% YoY vs. 2.5%. Inflation from a producer level usually filters onto the consumers, so it's great to see leading lower

• Bank of England raised interest rates by 25bps

• Short-term Treasury Yields are fluctuating as a result of a looming U.S. 'debt crisis'

• Data for the Week Ahead: U.S. Retail Sales (April); Housing Starts (April); Existing Home Sales (April)

Coinbase's International Hub 🇦🇪

Coinbase is a household name for all crypto users in the USA, and was built with the goal of becoming a legitimate & compliant exchange. That might change very quickly.

Coinbase CEO & Co-Founder Brian Armstrong said that after the tough regulatory environment the crypto industry is facing in the U.S., the exchange is looking for an international hub...

The region leading the race so far? The United Arab Emirates 🇦🇪

This could be a big move for Coinbase considering they are the largest U.S.-based exchange. They're not the first looking to leave, and they're probably won't be the last either...

Turning $250 into $2 million in 5 days 📊

Crypto is a strange place. Ordinary/Traditional investors look for decent returns of ~10% each year. Some cryptocurrencies can move 10% in a few seconds. But there is one coin that has sparked everyone's interest recently...

PEPE is a memecoin that was created as a joke. Well, that joke moved more than 21,000% in just 5 days, turning someone's $250 investment into more than $2 million...

This sounds all well & good, except the coin's liquidity pool is only ~$3m... meaning there just isn't enough liquidity to cash out all their positions 🥲 #onlymillionairesonpaper

Apple's Savings Account DOMINATES 🔥

There's just something special about Apple. Need a new phone, tablet or laptop? I don't even consider non-Apple products. I just seem to trust them more so than other brands, and clearly other people feel the same.

Apple launched a new 'High-Yield' savings account in partnership with Goldman Sachs offering 4.15%. Sounds attractive, but your real return is still negative (thanks, inflation)👍🏼

Ready for the crazy part? They had more than $400 million in deposits ON LAUNCH DAY ALONE & HIT $1 BILLION in the FIRST 4 DAYS 😳

Apple has nearly 2 billion active devices, all of which can easily manage your savings account via the wallet app. The convenience of this & the failure of all these banks will catapult the success of this new offering.

Bitcoin Miner Revenue Hits High 💰

Bitcoin miners get paid for every block that they mine (which equates to 6.75 BTC or $200k), and the transaction fees from each transfer too. And let's just say they aren't short of 💰 right now.

Daily bitcoin miner revenue hit an 11-month high of around $3m 10 days ago. This is the highest its been since June, 2022.

It's mainly attributed to Ordinals, which are digital assets that have been inscribed on the Bitcoin network. It's got that 'new kid on the block' energy, boasting 3 million inscriptions in 4 months. 

So in simple terms... more transactions -> more fees -> higher miner revenue.

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See you next week 🦉

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.