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📈 Bankrupt Banks to Booming Bitcoin
eeeeee yikes.
Every time I refresh, I see a higher red percentage...
You're probably asking, "What the hell is happening???"
Couple reasons:
Well, this is crypto baby! It doesn't have to make sense! You may wake up tomorrow and every crypto is up 20%+.
The US treasury could announce that they have decided to add 10 billion dollars of Bitcoin to their balance sheet, and the market could tumble 5% because someone tweets that a second cousin of Putin was the real Satoshi Nakamoto...
My point is, the market is irrational.
Short-term movement is all noise. You SHOULD be dollar cost averaging and capitalizing on this discounted Bitcoin.
If you find your conviction of Bitcoin is deteriorating as the price moves down, you need to continue your Bitcoin research OR you have too much invested.
Ok, but why IS the price moving down? Could be a few reasons:
More people are realizing that we ARE in a recession, and it is likely to get worse as the year progresses
Berkshire Hathaway sold off 13 billion in equities in anticipation of more market turmoil
Ordinals are causing high Bitcoin fees and have created a minor divide in the community (more on that in the next issue)
People are struggling to make ends meet and typically sell off their "riskier" assets in times when they need cash. Not to mention Bitcoin is a lot easier to liquidate than many other assets people hold, like real estate, precious metals, and stocks.
There was as also a major Ethereum wallet associated with the Ethereum Foundation that sold some Eth which spooked the market. I guess most people haven't heard of operational expenses.
Doesn't matter.
Turn off your screen, grab your beverage of choice and go outside for a bit. Do not get sucked up in the rollercoaster that is crypto. It'll drain you.
Brief Summary: The U.S. Chamber of Commerce has expressed support for Coinbase, a leading cryptocurrency exchange, in its legal battle against the U.S. Securities and Exchange Commission (SEC). The Chamber of Commerce argues that the SEC's lawsuit against Coinbase could set a dangerous precedent for the broader crypto industry and hinder innovation. The organization believes that clear regulatory guidelines are necessary to foster the growth of the digital asset market while ensuring consumer protection and preventing fraud.
Ponder Crypto's Take: Yes! This is the reaction we need. The actions of our regulators, particularly the SEC, are driving away one of the most significant advancements in human history and pushing it into the hands of other nations. Countries like Hong Kong, Dubai, and the UK will capitalize on this opportunity if the US chooses to look the other way. Unless the United States awakens and embraces FinTech in a manner reminiscent of our approach to the emergence of the internet, implementing laws that encourage innovation, we risk lagging behind on a global scale. Damnit Gensler... it's almost bedtime and I'm all fired up again!
Brief Summary: As the United States approaches its debt ceiling, there is discussion about a potential solution involving the creation of a trillion-dollar platinum coin. This unconventional approach would involve the Treasury minting a high-value platinum coin and depositing it at the Federal Reserve, effectively increasing the government's available funds. While the idea has gained attention in the past, it faces practical and legal challenges, including the potential impact on the value of the dollar and the interpretation of existing legislation. However, proponents argue that it could serve as a temporary measure to avoid a government default while lawmakers work on a long-term solution.
Ponder Crypto's Take: The government has been considering an idea for years that is seen by some as foolish and worthless, akin to a low-quality cryptocurrency. It is both amusing and frustrating that the notion of spending less than what is earned is not given more importance compared to the proposal of minting a buffalo nickel valued at an astronomical 1 trillion dollars.
Brief Summary: Microsoft, Goldman Sachs, and Cboe Global Markets have joined forces to launch a new blockchain-based platform called Axoni. The platform aims to simplify and streamline the processing of complex financial transactions, such as equity swaps and derivatives. By leveraging blockchain technology, Axoni intends to enhance transparency, reduce operational costs, and mitigate risks associated with manual processing. This collaboration between major players in the technology and financial sectors highlights the increasing interest in blockchain's potential to revolutionize traditional financial systems and increase efficiency in the industry.
Ponder Crypto's Take: Major industry players have been strategically preparing for years to leverage the potential of blockchain technology. What makes this development particularly exciting is that when big players embrace blockchain, it is likely to generate significant lobbying power. This lobbying influence can be used to advocate for the acceptance of cryptocurrencies such as Bitcoin and Ethereum in the eyes of regulators.
Brief Summary: Warren Buffett's company, Berkshire Hathaway, has sold approximately $13.3 billion worth of stocks in recent months, leading to speculations about its potential implications for Bitcoin and other risk assets. This move by Buffett, known for his investment prowess, is seen by some as a warning sign for high-risk investments. While it is uncertain if there is a direct correlation between Buffett's stock sales and the crypto market, it has sparked discussions about the broader sentiment toward riskier assets and the potential impact on cryptocurrency markets.
Ponder Crypto's Take: According to prevailing sentiment, the consensus is that we are currently in a recession, which is expected to worsen as the year progresses. The near-term outlook appears grim, but it is not anticipated to persist until mid to late 2024. To address the deteriorating economic conditions, the Federal Reserve (FED) is likely to halt the rate hikes in the upcoming meetings and may even reduce rates again, coinciding with the next Bitcoin halving event.
Darius Dale is the founder & CEO of 42Macro. In this conversation, he talks about the debt ceiling, bitcoin, China, global markets, the relationship between central banks, global liquidity, S&P500, bitcoin, and his current portfolio strategy.
This is not financial advice. I am merely stating my own opinion on how I am perceiving the current market structure and conditions. Consult with a legal investment advisor and all the other good legal stuff that needs to be said.
Disclosure: All content shared in the Ponder Crypto website, newsletters, video channels or any other medium are for entertainment purposes only and should not be received as legal or financial advice. We are not legal experts or financial planners so please, exercise proper due diligence and do your own research.