In This Issue
- David & Sam share their thoughts on stocks de-correlating from crypto, the Bank of China issuing tokenized securities on Ethereum, the SEC taking fire on multiple fronts, last weekend’s blood bath, BTC and ETH dominance, Polygon 2.0, the UK banning nice things & a Norwegian CBDC on Arbitrum.
- This Week On Chain.
- Rekt Capital has the latest technical analysis for you on the market.
- This week’s trending coins by Rebecca.
- Erik has a report for you on what the dollar milkshake theory implies for gold and Bitcoin.
- Defi Dad has a tutorial for you on how to earn up to 12.75% vAPR with OETH on Convex.
- Jesse has a ton of hot new airdrops for you.
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The News Now
Stocks De-Correlating with Crypto
Over the last few days, Crypto Twitter has been wringing its hands about the fact that major tech stocks and the larger indexes appear to be de-correlating with crypto, in the direction we don’t want to see.
Specifically, when comparing the top ten crypto assets by market cap (blue) with the Nasdaq (orange) and S&P 500 (yellow), since April 2023, crypto is down 7.5% while the indexes are up 14% and 7%.
Does zooming out make it all better? Nope. Running the same comparison over the past full year (June 22 to June 23), crypto is down 12%, while the indexes are up 20% and 7%.
So is it game over? Did the Final Boss, Scary Gary Ginsler, win? Is it time to sell your stacks and walk away? Hardly.
Here’s why this is happening now. Three points:
- Crypto follows its own market cycle, based on the bitcoin halving. When we REALLY zoom out, and look at bitcoin’s price in the broader halving cycle, and compare now to the same periods before the 2020 and 2016 halvings, we’re right where we should be. Currently, we’re a year out from the next halving. We are ranging sideways, in what appears to be the “depression” or “disbelief” market psychology stages, and BTC’s price is comfortably above the post-2016 halving ATH. Compare all this to the year before the 2020 and 2016 halvings. It’s the same exact story both times.
- Stocks de-correlated from crypto like this from May 2018 to May 2019. Back then, the total crypto market cap was down 55% while the Nasdaq and S&P 500 were up 20% and 11%. This data reinforces the idea that the bitcoin halving cycle really is its own beast. Each halving creates a supply shock that sparks a market mania, a bubble pops, and then a 70% to 80% correction ensues. Rinse and repeat.
- Don’t forget how hardcore this last year has been. The Terra-Luna collapse. The FTX collapse. The epic protection from Gensler and company.
And despite all this, bitcoin’s ranging in the mid to upper 20s. Right where it should be. This current stock de-correlation ain’t nothing new.
Bank of China Issues Tokenized Securities on Ethereum in Hong Kong.
Here’s some fun facts about the Bank of China (BOC). It’s mainland China’s second oldest and fourth largest bank. It’s state-owned. It controls a cool $3 trillion in assets.
Here’s another fun fact. The BOC just issued tokenized securities on Ethereum in Hong…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
