There’s really nothing like the smell of strong crypto hopium in the morning.
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- An overlook of the crypto markets
- The top airdrops of the month
- The top altcoins to watch
- The best DeFi farms
- The most exciting NFT mints
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Here’s what’s in today’s issue:
- David shares his thoughts on Bitcoin and Ethereum’s latest price predictions, Hong Kong’s BTC ETF heating up, Ethereum’s Duncan upgrade, Block laying off 10% of employees, German police seizing 50,000 BTC.
- Rekt Capital has the latest technical analysis for you on the market.
- Erik has an article on the innovations that made Bitcoin possible.
- In case you missed it by Rebecca.
Bitcoin and Ethereum Price Predictions!!!
We’ve got some fresh price predictions for the world’s two largest cryptocurrencies. And who doesn’t love a fresh price prediction?
King Bitcoin: $170K in 18 Months
Last week, Scott Melker hosted Anthony Scaramucci on his Wolf of All Streets podcast, and they talked bitcoin.
If you don’t know him, Scaramucci is the founder and managing partner of SkyBridge Capital, a billion dollar global alternative investment firm in NYC.
Scaramucci also served as a White House Communications Director for President Trump, and he was the first external investor in BlackRock’s spot bitcoin ETF.
The point here people is Scaramucci isn’t just some Joe Blow off the street.
During the podcast, Scaramucci said he expects bitcoin to hit at least $170K about 18 months after this April’s halving.
He gets to that number because bitcoin’s price on the day of its previous halvings – multiplied by 4 – is typically where price lands 18 months after. So Scaramucci’s “conservative” estimate is that bitcoin will be $35K in April, and therefore $170K around October 2025.
However, Scaramucci also acknowledged that price could be higher in April (e.g. $50K), and he’ll use the same multiplier to project it 18 months out (e.g. $200K).
Queen Ethereum: $4K in 4 Months
Our favorite British multinational bank, Standard Chartered, has a new price prediction for Ethereum.
The bank released a report on Tuesday stating ETH could hit $4K in May, because they expect the SEC to begin approving spot Ethereum ETF applications on May 23rd. This date is the first final deadline for the VanEck and Ark/21Shares spot ETH applications.
Interestingly, Standard Chartered says there’s “no fundamental reason” for the SEC to treat the ETH applications differently from the bitcoin applications; and that the market is undervaluing ETH’s price in this context because many are skeptical these will get approved.
Spot Bitcoin ETFs Heating Up In Hong Kong
Things are starting to get real in Hong Kong.
First, in late December, Hong Kong’s Securities and Futures Commission (SFC) announced that they were ready to consider applications for spot crypto ETFs in the jurisdiction.
Then two weeks ago, news broke that the Hong Kong financial services company, Venture Smart Financial Holdings, is planning to launch a spot Bitcoin ETF with the goal of trading to begin in Q1.
And finally, on Monday, Harvest Global Investments, a major Chinese asset-management company, announced that they’d formally applied for a spot bitcoin ETF.
All signs are flashing green that spot bitcoin ETFs will hit Hong Kong in 2024. These ETFs will provide entries for Chinese institutions and retail to get exposure to bitcoin. And that means more bitcoin – which already is in short supply – will get pulled off exchanges and OTC desks. And the US ETFs are sucking up bitcoin. And the halving is in two months.
You’re not bullish enough, Anon.
Ethereum’s Dencun Upgrade Almost Complete
Ethereum’s Dencun upgrade is getting close to going live on mainnet.
Last week, Dencun went live on Ethereum’s Sepolia testnet. Prior to Sepolia, Dencun launched on the Goerli testnet.
Now Holesky – Dencun’s final testnet – is all that remains, and that launch is scheduled for February 7th. Once Holesky is finished, Dencun will go live on Ethereum’s mainnet.
Dencun will be Ethereum’s biggest upgrade since Shepella, which occurred last March. Dencun helps usher in “proto-danksharding”.
Long story short, proto-danksharding will reduce the cost of transactions across the ecosystem in two ways. First, it reduces the transaction costs on Ethereum L2s. And second, it makes data availability cheaper.
Block Laying Off 10% of Employees
Block, Inc. is going through a hardening process. According to reports, the company began employee layoffs this week.
In an earnings call last year, company executives stated they were planning on laying off 10% of their workforce over the course of 2024. Thus, Block’s headcount will go from approximately 13K to 12K employees by the end of the year.
Apparently, the reason for the layoffs is due to company growth (expenses) outpacing revenues. Even though company revenues have been rising year over year, Block has shelled out huge research and development and salary expenses over the past two years, in an effort to increase product innovation. Thus, these layoffs are an effort by the company to tighten the belt.
Block, Inc. is the Jack Dorsey-lead fintech company that has a penchant for bitcoin. Square provides payment processing services to merchants while Cash App does the same for individuals.
Cash App allows individuals to buy, hold, and sell bitcoin, and Block holds it as part of its treasury reserve strategy. At the time of this writing, the company holds 8K bitcoin on its balance sheet.
German Police Seize 50K Bitcoin
News broke this week that German authorities seized 50K bitcoin, worth a cool $2.1B, from two unknown individuals. This is the largest crypto seizure in the country’s history.
Apparently, German police have been investigating a piracy website that operated in 2013 for violating the country’s Copyright Act and for commercial money laundering violations. Allegedly, the operators in 2013 were flipping the website’s revenues into bitcoin.
German authorities have stated that the investigation is ongoing, that no official charges have been filed against the two individuals, and that they don’t know what they’ll do with the bitcoin in the future. Moreover, they said that one of the individuals voluntarily transferred the 50K bitcoin to them.
Ouffff. That person should have had a boating accident instead.
Let’s dive into today’s Altcoin Market Update.
In today’s edition of the Newsletter, the following cryptocurrencies will be analysed & discussed:
- Polkadot (DOT)
- UniSwap (UNI)
- Chiliz (CHZ)
- VeChain (VET)
- Theta Token (THETA)
- Polygon (MATIC)
Before we dive in to today’s Altcoins, let’s first talk about how the Altcoin market may slowly be coming back to life after a period of retracement in recent weeks.
Altcoin Market Cap
Last week, I posted a tweet on X about how the Altcoin Market Cap needed to retest its market structure base as new support to position itself for a potential breakout and upside in the future:
Altcoin Market Cap was able to hold the base as support, despite downside wicking below it briefly:
In fact, the Altcoin Market Cap has been able to reverse to the upside and is now challenging the top of its pattern for a breakout.
Generally, this looks like a re-accumulation structure and it’s coming at an interesting time when we consider Altcoin Hype Cycles.
Altcoin Hype Cycles
Historically, Altcoins tend to bottom after corrective periods mid-way through a particular quarter.
Sometimes this bottoming occurs earlier, sometimes a little later, but generally this appears to be the case, on average.
They bottom at a time in the market where maximum pessimism and extreme fear dominates when it comes to Altcoin valuations.
As a result this happens to be a period of when the hype towards Altcoins is the lowest.
It’s after this moment in the Hype Cycle where Altcoins begin to increase in their valuations, all the way until the end of the Quarter where they reach their moment of highest hype, peak FOMO, peak greed before retracing once again.
Fundamentally, it’s at the end of the Quarters where Altcoin projects tend to release mainnets, make crucial updates and announcements.
In this respect, both TA and FA are two sides of the same coin.
But with Altcoin Market Cap slowly gearing up for a new uptrend, Altcoins trying to solidify themselves after their corrective periods, and the timing being almost perfect for a new Quarter 1 Hype Cycle…
These are all signs pointing to a new wave in Altcoin rallies.
So let’s cover a few of the Altcoins we’d discussed in recent weeks and how things have progressed since those updates, starting with Polkadot.
Polkadot — DOT/USDT
Last week, we spoke about how DOT was gearing up for a retest attempt of the green demand area:
One week later, the retest has proven to be successful:
DOT has rebounded +12% to the upside and looks set to Monthly Close above the top of the green support area.
A Monthly Close above the top of the green area would enable DOT to continue to follow the blue path so as to revisit the black highs above.
CLICK HERE to go Premium and read the rest of this week’s Market Analysis – Premium subs can read Rekt capital’s full report.
The Genesis Book: The Innovations that Made Bitcoin Possible
The recently published The Genesis Book will become a reference work in Bitcoin literature.
It gives the reader a glimpse into the lives of the pioneering computer scientists, monetary theorists, and cryptographers who paved the way for Bitcoin.
In this article, I will single out three key innovations that made Bitcoin possible, as highlighted in the book.
For example, the invention of public key cryptograhpy in the 1970s and the idea to hash documents with their timestamps to create a chronological order of records that can’t be tampered with.
Crypto Market News
- German police have seized $2.1 billion worth of Bitcoin in a piracy sting. Source
- Bitwise is the first spot Bitcoin ETF to release its BTC wallet address as a way for investors to verify its holdings. Source
- GBTC outflows have cooled off and are down 70% from the peak. Source
- BlackRock’s spot Bitcoin ETF has passed $2 billion in assets. Source
- Invesco has cut its spot Bitcoin ETF fees from 0.39% to 0.25% to lure in new investors. Source
- Hong Kong has received its spot Bitcoin ETF application from Harvest Global. Source
- Google has revised its advertising guidelines to allow Bitcoin-related ads. Source
- Cboe exchange has withdrawn its application to list the Global X spot Bitcoin ETF. Source
- A spot Ethereum ETF may not be approved until early 2025 or 2026 according to TD Cowen. Source
- Ethereum could hit $4,000 by May if a spot ETF is approved according to Standard Chartered. Source
- Mailerlite, the email service has confirmed hackers gained access to Web3 companies and drained $3.3M from subscribers in email phishing email attacks. Source
- Trezor has confirmed users have been hit with new phishing emails after a security breach on January 17. Source
- The US Securities and Exchange Commission (SEC) has delayed its decision on BlackRock’s Ethereum ETF to March 10. Source
- Cornell University’s College Scholar Program has launched its first Bitcoin-focused degree. Source
- Cathie Wood has said on CNBC that Bitcoin is “one of the most important investments of our lifetimes.” Source
- Amazon is making a movie based on the Bitfinex money launders who made away with more than $3 billion of Bitcoin. Source
- Anthony Scaramucci predicts Bitcoin will skyrocket to at least $170K after the halving. Source
- Coinbase has been upgraded by Oppenheimer from “perform” to “outperform” due to its strong financials and management team. Source
- Visa has partnered with Transak to allow crypto withdrawals on debit cards in 145 countries. Source
- Bitpanda has launched a crypto trading platform for institutional investors across Europe. Source
- Jack Dorsey’s Block has started making its previously disclosed layoffs as part of a plan to cut staff by 10%. Source
Coins and Projects
- Bitcoin whales accumulated $3 billion worth of BTC in January. Source
- Bitcoin mining company GRIID has started trading on the Nasdaq under the ticker “GRDI.” Source
- Ethereum options monthly trading volume hit an all-time high in January. Source
- Ethereum developers have confirmed its Dencun upgrade will launch on the Sepolia and Holesky testnets on January 30 and February 7. Source
- Circle will issue USDC on Celo network to boost RWA opportunities. Source
- Polygon is proposing a framework to classify DeFi protocols as a “critical infrastructure” and should be overseen by federal agencies in the US. Source
- Starknet is teaming up with Celestia to improve data availability for Layer 3 chains within its ecosystem. Source
- Avalanche has set rules for its $100M memecoin fund and projects hoping to receive funding must have at least 2,000 unique holders and $200K in liquidity. Source
- Ava Labs has released its plans for its scaling solution Vryx with the hopes of achieving 100,000 transactions per second. Source
- Solana Labs has released extensions for the SPL token standard on the network. Source
- Solana’s Drift protocol has launched a points program to reward its users ahead of its token launch. Source
- Solana’s DEX Jupiter has flipped Uniswap after exchange volumes hit $480 million in a 24-hour period. Source
- Solana’s monthly transaction volumes for January have reached a multi-year high. Source
- Magic Eden has launched a self-custodial wallet that’s supported on Solana, Bitcoin, Polygon and Ethereum. Source
- Noble has teamed up with Hashnote to launch tokenized securities in the Cosmos ecosystem. Source
- Optimism-based Beam wallet will use Join app to facilitate Amazon purchases. Source
- Pyth token stakers have skyrocketed to over 110,000 in January from less than 10,000 users in December. Source
- dYdX chain has added liquid staking for DYDX in its latest network upgrade. Source
- Abracadabra Money has confirmed a $6.49M exploit has caused its MIM stablecoin to depeg. Source
- The US economy grew at an annualized rate of 3.3% in Q4 2023. Source
- Canada has held interest rates at 5% for the 4th consecutive time and economists are pricing in cuts from June. Source
- The UK has published a response to its CBDC public consultation and has concluded that its plans need more time. Source
- China’s Evergrande has been ordered by the courts to liquidate after overseas creditors failed to reach an 11th-hour restructuring deal. Source
Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.
If you are reading this it means you are on the free version of the Wealth Mastery Investor Report, which is great for news and tips on the crypto markets.
If you really want to take advantage of fastest growing asset class EVER, I highly recommend that you check out my new altcoin course: Mastering Altcoin Investing
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See you next time!
Lark and the Wealth Mastery Team
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Wealth Mastery (Lark Davis, and the Wealth Mastery writing team) are not providing you individually tailored investment advice. Nor is Wealth Mastery registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. Wealth Mastery is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.
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