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- Stocks Up, Crypto Down - What Gives?
Stocks Up, Crypto Down - What Gives?
PLUS: Why Bitcoin's Rally Is Still Ahead Of Schedule
Stocks Up, Crypto Down - What Gives?
Why Bitcoin’s Rally Is Still Ahead Of Schedule
Republican’s Are ‘Progressive’ On Crypto
And more…
Market Data Prices as of 5:30am ET
Price (USD) | Change (24h) | Change (YTD) | |
Bitcoin (BTC) | $57,048 | +0.3% | +34.9% |
Ethereum (ETH) | $2,347 | +0.84% | +2.87% |
Solana (SOL) | $134.66 | +3.47% | +32.67% |
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STOCKS UP, CRYPTO DOWN
- WHAT GIVES?
Since April, the S&P 500 has been climbing, while Bitcoin and much of the crypto market have been heading down.
Why the difference?
It boils down to risk tolerance. Investors feel more comfortable with lower-risk options like the S&P 500, especially during uncertain times.
They’ve been scooping up dips in traditional markets but have been hesitant to do the same with crypto.
So, what needs to happen for the crypto market to rebound?
The answer is more money, and lots of it.
That requires two things: rate cuts and quantitative easing (QE).
Rate cuts lower the cost of borrowing, which puts more money in the economy. Quantitative easing, meanwhile, is when central banks go on a buying spree to prop up markets.
The date to watch: September 18, 2024. The Federal Reserve will meet to discuss the next potential rate cut, which Fed Chair Jerome Powell has already suggested could happen, as we reported at the end of August.
A single rate cut won’t immediately fix the crypto vs. S&P divergence, but it will bring us closer to a risk-on environment for investors.
Meanwhile, across the crypto ecosystem, even as prices lag, blockchain technology is thriving, with adoption and revenues reaching all-time highs. 🚀
WHY BITCOIN’S RALLY IS STILL AHEAD OF SCHEDULE
According to Zero Hedge, the latest turbulence in the crypto markets doesn’t change Bitcoin’s long-term outlook.
Founded by a group of Wall Street veterans, Zero Hedge is a financial blog that fosters a contrarian approach to financial commentary.
Their articles have garnered them 1.9 million followers for one reason: they’ve proven to be right more often than not.
In fact, in a recent article, they argue that Bitcoin is still ahead of schedule in its bull-run, drawing comparisons to previous cycles.
Unlike past sell-offs, which were often tied to specific events like the collapse of FTX or China’s mining ban, this downturn is rooted in broader macroeconomic factors
“My view is that this entire selloff in crypto is 100% a macro induced liquidity crisis and globally contagious margin call. It has very little (nothing?) to do with Bitcoin, it has everything to do with a few chickens coming home to roost and a mad scramble for solvency.”
Zero Hedge asserts that this "liquidity crisis" has more to do with global financial issues than with Bitcoin itself.
Moreover, despite the recent price dip, institutional investors are holding firm. Bitcoin ETFs have shown resilience, with no significant outflows since early this year.
“Bitcoin simply is the highest performing asset in absolute terms of all time. At the end of the day, I’d be worried in the short term if there was something specific to the Bitcoin or crypto markets driving this pullback.”
Even Bitcoin miners have begun accumulating, reflecting their confidence in the long-term value of the asset.
As we move forward, it’s worth noting that Bitcoin’s trajectory remains consistent with past halving cycles, suggesting that the next major upward move could be imminent.
With this perspective, seasoned crypto investors may see this as just another bump in the road rather than a cause for alarm.
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REPUBLICANS ARE ‘PROGRESSIVE’
ON CRYPTO
Republicans Are Pro-Crypto, Democrats Lag Behind, Says Saylor
In the ongoing debate about the future of cryptocurrency in U.S. politics, Michael Saylor, Executive Chairman of MicroStrategy (MSTR), believes the Republican Party is significantly more progressive on the issue than the Democrats.
During an appearance on CNBC, Saylor pointed out that the GOP has become staunch supporters of crypto and bitcoin (BTC), with Trump playing a pivotal role in shaping this viewpoint.
“The Republicans have shifted to way progressive in their view toward crypto and bitcoin, while the Democrats are gravitating toward the center,”
His observations come at a crucial time as regulatory pressure mounts and the 2024 election draws closer.
Addressing questions about Gary Gensler, the SEC Chairman, and his possible involvement in a Harris administration, Saylor diplomatically avoided answering, saying it was beyond his expertise.
OTHER NEWS:
Mastercard launches a Bitcoin debit card for direct spending in Europe from non-custodial wallets
CoinGate data shows the Lightning Network is experiencing significant adoption growth, with a doubling of LN payments in two years and a projected LN adoption exceeding 20% in Q3 2024.
BtcTurk integrates Lightning Network, enabling users to make instant Lightning deposits and free withdrawals at Turkey’s oldest exchange.
Japan considers tax cuts for Bitcoin and crypto by reclassifying them as financial assets, reducing profits from a 45% income tax to a 20% capital gains tax.
Strike integrates BOLT 12 support, enhancing bitcoin payments with reusable QR codes and improved user security.
Central banks bought a record 483 tonnes of gold in the first half of 2024, but Bitcoin still outperforms.
Venezuelan opposition leader María Corina Machado calls Bitcoin a ‘lifeline’ in exclusive interview with Alex Gladstein.
Nicolás Maduro, president of Venezuela, asserts that Venezuela must revive its Bitcoin and crypto adoption efforts to combat the impact of ‘bandits and thieves’ on previous initiatives.
FOR THE FERTILE MIND…
You are what you read! Here is what we are reading right now…
CryptoSovereignty - Erik Cason
The Sovereign Individual - James Dale Davidson and Lord William Rees Mogg
Contributions to Philosophy (Of The Event) - Martin Heidegger
Liberty and Property - Ludwig Von Mises
Theory of a Multipolar World - Alexander Dugin
Debt: The First 5,000 Years - David Greuber
MEMES OF THE WEEK
no better feeling
— wallstreetbets (@wallstreetbets)
4:53 PM • Sep 8, 2024
DAY 1 IN CRYPTO ...... TWO YEARS IN CRYPTO
— Tim Copeland (@Timccopeland)
2:14 PM • Sep 9, 2024
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.