A weekly newsletter on actionable digital asset market insights and practical observations with a smidgen of greentea 🍵 insights
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📖 Book of the Month 📖
This month let's add a new book that is very interesting and financial history of the world during the gold standard era from the 1920's and 1930s. I am reading this book because it is a great view into what a changing monetary system looked like during that era and the divergences that central banks had in an every man or woman for themselves period of transition.If you are reading along or listening drop me a note on Twitter or email!
Listen to: The Lords of Finance For Free with Audible. Link
💭✍🏼 Food For Thought 💭 ✍🏼
For all the Bitcoin Holdrs you should probably listen to the $MSTR's 1Q2022 Earnings Call if you have not. If we get deterioration in MSTR as a result of their leveraged Bitcoin position it "could" trigger a systemic Bitcoin issue as they delever (i.e. sell Bitcoin in mass either voluntarily or if they are forced to sell). Link
This Milken Institute held their annual Global Conference this Week. This is a premiere conference for the major players in private equity, hedge funds and high finance generally. If you have an interest to know what these titans of industry are talking about and planning for you can watch the sessions online for free ➡️ Link
As I always say, everything is connected. This is an interesting anecdotal datapoint a reader sent me. The last few weeks I posted here stories of mortgage brokers and lenders reducing headcount. Now a Big Tech pull back data point. If you have been reading this newsletter you will not be able to say "no one saw this coming". Many people with much bigger voices than mine have been warning the same for some time. ➡️ Link
I leave this section with an interesting item from the DeFI world that is significant enough for me to flag as an item to watch. I may do a video on the topic of interconnections broadly. ➡️ Link
💸 Companies and Deals I am Watching Closely 💸
1. Syndicate, a startup providing asset management tooling for DAOs, raised $6 million from Carta, Circle, OpenSea, Uniswap and others. - Link
2. Pangea Fund Management has raised $85 million for a first time fund focused on digital assets. - Link
3. Amberdata, a digital assets data provider, raised $30 million from Knollwood Investment Advisory, Coinbase, Nexo and others. - Link
📖 Quote of the Week 📖:
“Everyone has a plan 'till they get punched in the mouth.”
-Mike Tyson
📰 This Weeks Most Interesting Digital Asset News 📰:
1. Solana restarted after seven-hour outage caused by surge of transactions - Link
2. The Bipartisan Digital Commodity Exchange Act of 2022 (DCEA) has been put forth in the House - Link
3. Luna Foundation Guard further bolsters Stablecoin reserve by raising $1.5 billion in bitcoin - Link
4. Panama's Crypto Law: Digital Assets Exempt From Capital Gains Tax - Link
5. Binance joins funding for Elon Musk's takeover of Twitter - Link
📈 Top 10 Market Movements by Market Cap over the last 7 days 📉:
Bitcoin: Price OHLC
I have updated the chart for this week and it is pretty clear what I have been saying.
You can see above that Bitcoin has not broken above the $48k amount in 2022. I continue to remain bearish short term but as I have previously stated that I am planning to take a hard look starting now in the May / June time frame.
Bitcoin: HODL Wave
The chart shows the bundle of all active supply age bands for Bitcoin, aka HODL waves. Each colored band shows the percentage of Bitcoin in existence that was last moved within the time period denoted in the legend. We still have more to go.
Bitcoin: Net Realized Profit/Loss Ratio
Net Realized Profit/Loss Ratio is the ratio between realized profit and realized loss. As you can see above the majority that have sold as at a loss on a "net" basis on the lows this prior week.
Ethereum: Price OHLC
OHLC is the Open, High, Low and Close price. ETH is still chopping around just like Bitcoin above and you can see here it is off the highs of the prior weeks and also down the the year of 2022.
Total Value Locked (USD) in DeFI
Week over week you can see the same story in DeFI with chop historically between 75 Billion and 84 Billion at the high. Now we see a sharpe break below the $75 Billion range. Does this presage more to come?
As a reminder TVL means "Total Value Locked". This refers to people taking ETH based tokens or other tokens and "locking" them in DeFI protocols to lend, generate yields and otherwise earn excess returns.
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Green Tea Tidbits:
The scientific name for green tea is Camellia Sinensis.
Disclaimer:
This Newsletter does not provide, and no portion of this content purports to be, individualized or specific investment advice and I do not provide investment advice. All information provided herein is general in nature and is made without regard to individual levels of sophistication or investment experience, investment preferences, objectives or risk parameters and without regard to the suitability of the content for individuals or entities who may access it.
No information provided herein, should be construed as an offer to sell, or a solicitation of an offer to buy any security or investment vehicle, nor should it be construed as tailored or specific to you, or any reader or consumer thereof. You understand and agree that the content does not constitute specific recommendations of any particular investment, security, portfolio, transaction or strategy, nor does it recommend any specific course of action is suitable for any specific person or entity or group of persons or entities.
The content herein is based upon information from sources believed to be reliable and I am not responsible for errors, inaccuracies or omissions of information; nor is it responsible for the accuracy or authenticity of the information upon which I rely. For informational purposes only. Do your own research.
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