Despite posting a record 9th consecutive week in the red, all things accordingly, it was relatively tame week compared to the last few with BTC dropping a mere 2% and unfortunately staying below the psychological 30k level. Ethereum, fared a bit worse posting a loss of ~10% on the week with many curious as to the underperformance of ETH. Many pointing to a few hedge funds that have moved large chunks of eth onto exchanges, potentially signaling their intent to sell. Both of these moves are interesting considering the strong correlation they have had to traditional equities over the last couple months and the apparent decoupling this week as traditional assets posted their largest one week gain in two years – certainly not the decoupling that was imagined by many in the crypto community. Despite the “crypto winter” we seem to be in, Cathie Woods came out this week saying she believes we may soon be out of this and JPM reiterated their 38k fair value on Bitcoin while labeling it their preferred alternative asset, a far cry from their stance in 2017 that it was effectively going to 0. Now down over 50% from its highs, bitcoin now claims to be the 10th largest asset in the world, behind Gold (#1), Silver (#6) and a handful of large cap equities. While a return to the top 5 may not imminent, it is likely on the horizon sooner rather than later.
The Central African Republic announced that they would be building a crypto island on some of their land and making it a tax haven for the digital asset as the president seeks to increase investment in the country. The governor of Miami said that he is still receiving his salary in Bitcoin while Ted Cruz said that he buys a bit of bitcoin every week. The Portuguese parliament struck down a bill that was poised to tax crypto within the country, and Italy approved Binance to operate within the country, marking the first major exchange that has been given this permission.
Stripe announced that it will soon be allowing merchants to be paid in cryptocurrency. JPM made several comments on Bitcoin, and one of their top analysts said that he sees the market cap of gold and Bitcoin “equalizing” which at todays prices equates to ~600k per bitcoin. Andreessen Horowitz raised its 4th crypto fund a16z with 4.5b in funding, more than double the size of its last fund despite the market turmoil. 3b of this fund is earmarked for venture capital investments with the remaining 1.5b slotted for early-stage seed projects. Finally, as the Ripple ($XRP) lawsuit drags on, the CEO said this week that he will be looking into an IPO of the firm once the SEC battle is over.
- Mastercard CEO says SWIFT will not exist in 5 years.
- Drake gave away $1m in Bitcoin during a livestream.
- A deepfake of Elon Musk touting a crypto scam circulated with Musk having to come out and deny it on his official accounts.
- Luna2.0 launched and failed within hours.
- MonkeyPoxInu (yes it’s real) is down 99.99% after the developers exited with over $400m