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- š„4 KEY reasons why BTC's stalled... š¤
š„4 KEY reasons why BTC's stalled... š¤
PLUS: Where's all the ETH going? š¶āš«ļø
Today's edition is brought to you by MetaMask Learn - boost your crypto skill set and get smarter about crypto now for free! š¤
GM. This is Milk Road, the 2nd best part of your weekend - the 1st is the fact that it lasts 3 days. Happy Memorial Day.
Itās Saturday. Giddy up:
Why hasnāt BTC moved for weeks? š
ETH is flying off exchanges š¢
NFT ticket to paradise šļø
Binanceās new Thailand exchange šŖ
WHATāS STALLING BTCāS PRICE? š
Look yāall, I donāt mean to be a Debbie Downer on a Saturdayā¦
But weāve gotta talk about how BTCās price has been bouncing between ~$26K & ~$28K for weeks now.
Itās more stagnant than the Everglades. And instead of gatorsā¦ itās the bearsā world, weāre just living in it.
Hereās why we might not see a bull market for a while now:
1/ Thereās economic uncertainty with the debt ceiling stalemate
Lawmakers canāt agree on a deal to raise the debt ceiling (theyāre making progress though.)
And until they do, the government wonāt know if it can pay its bills. Neither do I, for the record - way too much Taco Bell this month.
Janet Yellen (U.S. Treasury Secretary) said Friday the U.S. could ārun out of moneyā by June 5. Yikes.
2/ The Fed canāt agree on if we need more interest rate hikes
Federal Reserve policymakers met Wednesday and were divided on if they should:
Raise interest rates
Or pause them
The threat of higher interest rates = people less likely to buy risky assets like Bitcoin. (The next decision is in mid-June.)
3/ UK inflation is hella high
Its core inflation hit 6.8% in April. Thatās the highest itās been since 1992.
Inflation = people less likely to invest in risky assets like crypto/Bitcoin.
4/ $2.2B+ worth of 85K Bitcoin options expired yesterday
This usually makes BTCās price volatile for a while - investors either buy or sell.
And if they go with the latter, that means more Bitcoin floods the market. Less scarcity = lower price
Milk Road Take: Go buy some bear spray - they might be around for a while.
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NUMBERS OF THE DAY š¢
~$6M - The amount stolen from users in a new scam
Itās a phishing scam that creates fake, malicious websites for cyberattackers. Then it charges them 20-30% of the assets they steal from people.
~5K victims have had their funds stolen on Ethereum, Arbitrum, & other chains.
Think of it as a scam-as-a-service. Itās called Inferno Drainer whichā¦ also kinda sounds like an underground Berlin club.
$173M - The amount in NFT transactions processed on Bitcoin
That makes Bitcoin the 2nd biggest NFT blockchain. Ethereumās No.1 - it processed $390M worth of on-chain NFT transactions over the last 30 days (Solana processed just $49M.)
So what? Ordinals, baby! The protocol has made Bitcoin NFTs a thing. Now the network is known for something other than just sending money back and forth.
And quickly too - Bitcoin has processed ~320K NFT transactions since Ordinals launched in January.
Thatās a drop in the bucket compared to Ethereumās all-time 38M figure, but still. Not too shabby.
17.86M - The amount of ETH currently held on exchanges
This is the lowest level recorded since April of 2018:
ETH exchange balances have been declining since 2020. And things have accelerated since the Merge transitioned the network to proof of stake.
The two main reasons for this?
1/ The ability to stake ETH
Investors are chasing the attractive yield that comes with staking ETH, which is something you canāt do on a centralized exchange.
And when you account for liquid staking derivatives and an open withdrawal queue, staking ETH has become more accessible than ever.
2/ Events like FTX have spooked investors
The collapse of centralized entities was a wake up call for the industry. More people than ever are seeing the importance of taking control of their own assets.
65 - The number of countries Strike is expanding to
Strike is a global money app that leverages Bitcoinās Lightning Network. Theyāre like a crypto-powered Venmo.
Right now, they are only in 3 countries: El Salvador, Argentina, and the U.S.
But Strike has BIG ambitions: make BTC a global currency.
And this move will expand their services to almost 3B people worldwide.
USE CASE OF THE WEEK: TICKETS šļø
Hereās a hard pill to swallow: A lot of crypto projects lack a true use case.
And many founders are trying to find solutions to problems that donāt even exist. But thereās one use case that doesnāt have many critics: NFT ticketing.
Why put tickets on the blockchain?
Digital collectibles: People love collecting and remembering events they have attended. Imagine a digital passport of all of the events youāve attended.. š
Authentication: Being able to track the ticket back to its creation allows fans to know their ticket is legit ā
More revenue: Event organizers can profit on ticket resales and everyone benefits from lower fees šµ
New experiences: Fans can be rewarded for their loyalty and engage in new digital experiences š
So what? Thereās been two big developments recently.
1/ The Professional Fighters League announced it will use NFT tickets
They are adding to their Web3 efforts and using NFTs for their VIP ticket experience. This could grant holders cage-side seating, attendance to pre-fight weigh-ins, and meet and greets with the fighters.
2/ Sports Illustrated dropped an NFT ticket platform
Built on Polygon, āBox Officeā will be the first complete NFT ticket service. It will allow event organizers and promoters to build enhanced experiences into collectible tickets.
Antique barcode ā Engaging and collectible content
MILK & COOKIES šŖ
Binance is launching a new crypto exchange in Thailand. It partnered with Gulf Innova to secure a digital asset license for the operation thatāll launch in Q4.
Gemini (the Winklevoss twins-owned crypto exchange) said its European HQ will be in Dublin, Ireland. š®šŖ The U.S. ā overseas crypto pipeline continuesā¦
Starbucks will airdrop more NFTs in June in its Odyssey rewards program. Caffeine addicts š¤ Web3 proponents.
Blurās NFT lender Blend has facilitated $225M in loans since it launched on May 1. About 85% of all loan volumes in the past month have happened on the platform.
MILKY MEMES š¤£
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GM Roadies. Happy Saturday
ā Milk Road Images (@MilkRoadImages)
1:16 PM ā¢ May 27, 2023
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.
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