BTC Dropped Below 60k. Why?

And US Elections

Author

Matt Curda
June 27, 2024

Hello Investors!

As every Thursday, bringing you the market highlights in 5 minutes.

BTC dropped below 60k. Why?

AI-Generated

Mt. Gox was once the world’s top crypto exchange, handling over 70% of all bitcoin transactions.

Now, years after continually moving deadlines, the perished bitcoin exchange Mt. Gox announced that it will start distributing assets stolen in a 2014 hack in the first week of July.

These “assets” involve a massive 140,000 BTC, and Bitcoin Cash, valued at approximately $9 billion in today’s prices.

Learn more: Theblock, Decrypt

Thoughts

Is this such a big deal?

To put it into perspective, the net inflows of Bitcoin ETFs in 2024 (yes, those behind the rally since January) are $14.4 billion*.

Now we have a $9 billion payday for investors that bought BTC at prices around $500 per BTC.

They might want to sell something.

The flow is simple:

  1. Bad news spooks investors and starts sell-off;

  2. Sell-offs start liquidations of leveraged positions, putting prices under bigger sell pressure;

  3. Selling is bad news and they scare investors further.

These are market dynamics at play and as always, long-term investors welcome these opportunities to get better entry prices —> step number 4.

To quote a real investor (guess who?): "The stock market is designed to transfer money from the Active to the Patient."

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Trump may be headed to Nashville to speak at Bitcoin 2024

AI-Generated

Donald Trump is in talks to speak at the Bitcoin 2024 convention in Nashville next month.

The convention, hosted by Bitcoin Magazine, is one of the largest gatherings in the cryptocurrency space.

Trump's potential attendance at the event is seen as another move to gain support from the crypto community ahead of upcoming elections.

Plus, the first debate this election cycle between President Joe Biden and former President Donald Trump is set for Thursday on CNN.

Learn more: Cryptonews, TheBlock, CNN

Thoughts

With Mr. Trump, it’s always a bit difficult.

On one side, he is advocating pro-crypto and seems like he’s all in - with his NFTs, memecoin portfolio, and strong legislative opinions.

On the other, 16 Nobel-prize-winning economists signed a letter citing that “a second Trump term would have a negative impact on the US’s economic standing in the world and a destabilizing effect on the US’s domestic economy.”

And there is always a chance he will turn 180 degrees and say he never said crypto is good - just see below the Tweet from 2019.

But in the end, it’s not just about the president, but the Congress as well.

Things to watch

  1. Q1 2024 Final GDP - Thursday: How the economy is really doing.

  2. Trump/Biden Debate - Thursday: This debate might shake up memecoin prices linked to the candidates. ($TREMP, $MAGA, $BODEN)

  3. May PCE Inflation - Friday: One of the core inflation indicators.

  4. Fed Monetary Policy Report - Friday: Insights on how the FED sees the economy and markets.

All the best,

Matt Curda




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