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GM. This is Milk Road. We're like your crypto morning alarm – relentless, a bit annoying, but you'll thank us later.

Here’s what we got for you today:

• WTF happened yesterday?? 🧐

• Coachella is launching a new NFT collection 🍪

WTF HAPPENED YESTERDAY?? 🧐

What a day, huh?

• BTC jumped to $69,000 (a new all-time high)… and then crashed to $62,000.

• Many altcoins dropped double-digit percentages. 

Things got bloodier than the “Red Wedding” scene from Game of Thrones…

So WTF happened? Bitcoin got hit with a 1-2 punch.

1/ Liquidations

Yesterday was crypto’s biggest “sell-off” event in over 6 months… 

• ~300,000 crypto traders got liquidated. 

• $1B+ was flushed out from the market.

Why this matters: Crypto has a lot of leverage (i.e. people borrowing). 

When prices fall, those borrowers' collateral gets liquidated (i.e. people are forced to sell).

And yesterday, crypto had more liquidations than a college bar at 2 AM. 

On top of that…

2/ An OG investor sold 1,000 BTC in 1 hour

One Bitcoin investor had a “welcome to crypto” gift ready for new buyers yesterday…

The gift? Dumping 1,000 BTC (worth $68M) right after it hit an all-time high. 

There’s never a dull day in crypto. 😂

Here are some of the best reactions from yesterday’s shenanigans:

Milk Road Take: Everyone knows crypto has cycles. Ups and downs.

It’s one thing to say it… it’s another thing to experience it. 

And some of you might’ve popped your “volatility” cherry for the first time yesterday. 

But don’t worry, there’s nothing to panic about. This is normal behavior:

• Every time BTC hits an all-time high, it’s usually followed by a big 10-25% drawdown. 

• It happened in 2013, 2017, and 2020. 

If BTC had a relationship status with its all-time high, it’d be “it’s complicated.”

This is a trend we’ve seen for years, and will probably see again soon. 

Just keep calm and HODL on.

BITE-SIZED COOKIES FOR THE ROAD 🍪

Liquid staking derivatives here, and restaking protocols there, but are you still stuck on what exactly is crypto staking? Check out the Milk Road guide to Staking, which includes an explainer and answers to a ton of FAQs. There are no dumb questions.

ETH just hit $3,800 for the first time since the end of 2021. Why the sudden rally? Ethereum’s next upgrade (Dencun) is scheduled for next week.

Coachella is launching a new NFT collection. Fans will gain access to VIP areas and exclusive merchandise at this year’s event via the NFTs. 

The total value locked (TVL) in DeFi protocols reached $100B for the first time in ~2 years. Business is boomin’!

Bitcoin ETFs saw $9.5B in trading volume yesterday - a new all-time high. Another week, another broken record. 

Binance listed $WIF (a popular Solana memecoin) on its trading platform. The memecoin is up 50% and hit a new all-time high. 

MetaMask is teaming up with Revolut to make buying crypto easier. Users can use Revolut Ramp to make crypto purchases directly into their MetaMask wallets. 

MILKY MEMES 🤣

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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.