- The Hoot
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- The Hoot #26
Scatt's Seeds for Thought:
🌱 El Salvador Mines Crypto Geothermally 🔥
🌱 BlackRock’s Bitcoin ETF 💰
🌱 Your 3 Crypto-Presidents 🇺🇸
🌱 Bitcoin is on the Move 📊
Meme of The Week
Year-to-date Market Performance:
S&P 500: 14.85%
Dow: 3.48%
Nasdaq Comp: 30.79%
Bitcoin: 59.48%
Ethereum: 43.65%
Scatt Capital’s Fortune Strategy: 15.02% (Since Inception: 10.68%)
7-Day Change in Crypto Market Cap: -$38bn
CRAZY week in the market
FOMC held off from hiking interest rates at their recent meeting
ECB raised rates by 25bps
CPI for May arrived lower than expectations at 4% vs. 4.1% respectively - markets loved it
PPI also came in lower than expectations at 1.1% vs. 1.5% respectively
U.S. Retail Sales eased to +0.6% YoY, which is the slowest since September 2020 but is still in positive territory
The Week Ahead: Markets Closed on Monday (Juneteenth); Housing Starts (May); Existing Home Sales (May); Fed Chair Jerome Powell’s Senate Testimony
El Salvador Mines Crypto Geothermally 🔥
El Salvador is home to 30 volcanoes. And owns almost 2,500 bitcoin. What do you get when you put the 2 together?
Volcanic geothermal bitcoin mining ⛏️ 🌋
There is a geothermal plant in one of the small cities, Berlin, that produces 107 megawatts of energy.
A portion of it will be used for the operation and mining of bitcoin.
This will supply ~300 computers night and day that can focus purely on mining.
They were also the first country to adopt bitcoin as a legal tender.
Legends.
BlackRock’s Bitcoin ETF 💰
Can BlackRock just make up its mind already?
The CEO then: “Bitcoin is an index of money laundering”
The CEO now: “We will officially be filing for a Bitcoin ETF”
Just 1 week after the 2 biggest crypto exchanges are sued by the S.E.C., BlackRock decides to file for a bitcoin ETF.
For reference… an ETF is an investment fund that invests in a broad basket of assets like stocks, bonds etc. We can then buy them on stock exchanges.
HOWEVER, BlackRock needs a broker/platform to buy the bitcoin though, and guess who is mentioned in the filing? Coinbase…
In other words… BlackRock is about to strongarm the U.S. government into dropping the Coinbase lawsuit 👀
Historically, they have a 99.8% acceptance rate for filed ETFs (575-1) so this is actually a massively bullish (positive) signal for crypto holders 🤑
Your 3 Crypto-Presidents 👔
Say it with me: Crypto will be the focal point of the next political election.
That’s certainly the case so far as evident by the handful of pro-crypto presidents in the running:
🇺🇸 Robert Kennedy Jr. (JFK’s nephew)
Accepts donations via bitcoin; doesn’t like CBDC’s (central bank digital currencies); and has been endorsed by Jack Dorsey (co-founded Twitter)
🇺🇸 Ron DeSantis (Governor of Florida)
Stated that everyone “has every right to do Bitcoin”; also doesn’t like CBDCs; announced his bid with Elon Musk on Twitter (potential endorsement?)
🇺🇸 Francis Suarez (Mayor of Miami)
First mayor to take salary in Bitcoin; wants to pay taxes and municipal workers in crypto; has been turning Miami into a global bitcoin hub 🌏
Meanwhile… Biden says crypto has ‘no economic value’ & Trump says it’s all a scam.
Sounds like it’s time for a change.
Bitcoin is on the Move 📊
As Jon Snow might say… Winter is here ❄️ At Least by crypto standards.
A popular way to hold bitcoin is in hot wallets. These are accounts at exchanges like Coinbase/Binance etc & are connected to the internet.
In 2020, around 15% of Bitcoin’s supply was held on exchanges.
Today? 6.5%. The lowest amount since 2018.
Why though? Simply put… everyone is sh*tting themselves.
The U.S. government is handing out lawsuits like candy, funds are being stolen, accounts getting hacked… it truly is the wild west 🤠
So where are people sending it all? Mostly ‘self-custody’ AKA cold wallets.
Remember… COLD IS ALWAYS BETTER THAN HOT.
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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.