• US Government Dumps Bitcoin

• 3 Reasons You Need Ethereum in Your Crypto Portfolio

• And more…

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US Government Dumps Bitcoin

BREAKING: Bitcoin Falls After U.S. Sends $240M Worth of Silk Road-Related BTC to Coinbase

Here comes more selling pressure…

The US government just sent 3,940 Bitcoin to a Coinbase wallet. ($240 million)

Data from Arkham Intelligence confirms that this Bitcoin was linked to a Silk Road vendor:

Arkham Did you know that the US government is also one of Bitcoin’s largest holders?

Data from Arkham shows that they own 213,546 Bitcoin. ($13.48 billion)

The timing of this selling from the US government is a little suspicious though…

In the past week, the German government has also been unloading Bitcoin.

Currently, they’ve moved over $425 million in Bitcoin to exchanges over the last 7 days.

And according to Arkham, the German government currently holds 45,264 Bitcoin. (there could be more selling coming in the next few days)

So, right now we have:

US government selling Bitcoin

German government selling Bitcoin

Mt. Gox distributions starting in July

Miner capitulation

That’s a whole lot of selling. 😱

And Bitcoin is still hanging on at around ~$61,000. (which is pretty impressive)

Once all of this selling pressure finally ends, it’s only a matter of time before Bitcoin starts to rip up again.

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THREE REASONS YOU NEED ETHEREUM

Analysts predict that Ethereum ETFs could launch by July 2nd.

This means investors should consider adding Ethereum to their portfolios now.

That's the latest insight from Matt Hougan.

Matt Hougan is the Chief Investment Officer at Bitwise – the 4th largest Bitcoin ETF issuer.

In his latest investment memo, Hougan broke down 3 reasons why you should consider adding ETH to your portfolio.

Reason #1: Diversification

One of the first lessons every investor learns is to diversify.

Don’t own one stock; own a basket.

The same can be said about crypto.

It’s very hard to know exactly just how crypto will change the world, so the default approach should be to “own the market”.

Here’s how Matt explains it:

“Today, the market cap for ETH, the crypto asset that powers the Ethereum blockchain, is about $420 billion. That’s about one-third the size of Bitcoin’s $1.3 trillion. The starting place should therefore be about 75% Bitcoin and 25% ETH.” - Matt Hougan

Reason #2: Bitcoin and Ethereum Serve Different Purposes

Bitcoin and Ethereum fulfill distinct roles.

Bitcoin is hailed as the premier form of currency ever devised.

Conversely, Ethereum enables programmable currency.

These represent two fundamentally different applications.

Including both Bitcoin and Ethereum in your portfolio ensures comprehensive coverage across diverse use cases.

Reason #3: Historical Analysis Says You Should

Historically, adding ETH to your portfolio has boosted both absolute and risk-adjusted returns compared to BTC only.

The table below examines the impact of a 5% allocation to crypto on a traditional portfolio of 60% stocks and 40% bonds over the past four years, using both a Bitcoin-only and a split 75% BTC / 25% ETH strategy.

The table clearly illustrates two key points:

Allocating to crypto in general boosted both absolute and risk-adjusted returns.

Adding ETH exposure resulted in even higher absolute and risk-adjusted returns.

Matt explains:

“You even get a smaller maximum drawdown despite the higher overall returns, thanks to the benefits of diversification.” - Matt Hougan

We believe the evidence is clear - including at least some Ethereum in your portfolio is a no-brainer. 🧠

Smaller drawdowns and bigger returns? Count us in.

However, one thing to note is that Bitcoin experienced a dip following the launch of Bitcoin ETFs.

It then soared to new all-time highs. 🚀

We wouldn’t be surprised to see Ethereum follow a similar pattern.

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OTHER NEWS:

• Ether Spot ETFs Could See $5B of Net Inflows in the First Five Months: Galaxy. Ether is more price sensitive to ETF inflows than bitcoin due to the large amount of ETH total supply that is locked up, the report said..

• Renewed Bullishness Expected After Bitcoin, Ether's $10B Options Expiry on Friday. Over 25% of options are set to expire "in the money," Deribit's Luuk Strijers told CoinDesk.

• Bitcoin Mayer Multiple hits lows that last accompanied $30K BTC price

  The Bitcoin price is increasingly low compared to its 200-day moving average — a key “buy the dip” signal, per the classic BTC price indicator.

• Ethereum Records Major Bullish Sign Against Bitcoin

  Ethereum (ETH) might finally be ready (BTC) to gain some ground against Bitcoin.