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  • šŸ„›Big price moves coming? šŸ”®

šŸ„›Big price moves coming? šŸ”®

PLUS: A month of outflows šŸ“‰

GM. This is Milk Road. Weā€™re the friend talking into your ear through a wire so you can sound smart on a date. Weā€™ve got your back.

Itā€™s Thirsty Thursday, Roadies. Leggo:

  • Here comes the buy/sell pressureā€¦šŸŽ¢

  • Ordinals ā†’ Doginals šŸ¶

  • Visual of the day: $54M in crypto outflows šŸ“‰

  • Ripple makes a big purchase šŸŖ

Prices as of 8:30 EDT

Todayā€™s edition is brought to you by NFTfi - the most trusted and longest standing NFT lending platform on the market.

CELSIUS & TETHER COULD ROCK ETH/BTCšŸŽ¢

Letā€™s talk about 2 things, Roadies: sell pressure & buy pressure.

The first happens when thereā€™s less demand for an asset, causing prices to fall. The second is when thereā€™s more demand for an asset, causing prices to soar.

Got it? Good. Now that weā€™re on the same page letā€™s talk about 2 big moves:

  • Celsiusā€™ sell pressure on ETH

  • Tetherā€™s buy pressure on BTC

Now, we canā€™t predict the future (only the Simpsons can), but hereā€™s how these events could affect crypto prices in the near future:

1/ Celsius could flood the market with loads of ETH

Celsius went bankrupt last July and owes its creditorsā€¦ *checks notes*... ~$4.7B.

Well, turns out the bankrupt crypto lender also has a sh*tton of ETH staked and now that Ethereumā€™s Shapella upgrade is over (AKA users can unstake their ETH), Celsius can access those funds.

In total, Celsius has requested to unstake 428k stETH (~$780M worth) from Lidoā€™s liquid staking platform.

The good news: Celsius could use that ETH to pay some creditors back. Alexa, play B*tch Better Have My Money

The bad news: When so much supply enters the market, that sends prices down, so people sell. Less scarcity = lower value = lower price.

(P.S. - Even if Celsius uses the ETH to pay people back, it might not happen for a while. Bankruptcy proceedings can drone on longer than my high school history teacher.)

2/ Tether wants to spend some of its profits on BTC

Tether issues the largest stablecoin by market cap, USDT. Last week, the stablecoin issuer said that it made $1.5B in net profit over Q1.

Now, Tether wants to put some of the profits to use.

Meanwhile Iā€™m using 15% of my paycheck on Taco Bell every week.

If Tetherā€™s Q2 net profits were anything like its Q1ā€™s ($1.48B,) that could mean the company would buy up ~$222M of BTC next quarter.

Large BTC volume buys/price predicted to go up = investors also buy.

Tetherā€™s tryna pull a Microstrategyā€¦

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WHO LET THE DOGINALS OUT? šŸ¶

Ladies and gents, activity on the Dogecoin network is BOOMING...

On Tuesday, it saw 719K transactions alone - a new all-time high. Wowza.

BitInfoCharts

What caused this? Doginals are following in Ordinalā€™s footsteps.

Thatā€™s right. The hype has gone from BRC-20s ā†’ DRC-20s.

Hereā€™s what you need to know about it:

  • DRC-20s function the same way as Bitcoin inscriptions

  • Users can embed data into the smallest unit of a Dogecoin, called Shibes

  • Since fees on the Dogecoin network are cheap, it costs a lot less money to create/buy/sell DRC-20s vs BRC-20s on Bitcoin

Why does this matter? There are two reasons:

1/ The congestion of the Bitcoin network is leading people elsewhere

Dogecoin isnā€™t the only network exploding. Itā€™s also raining cats and dogs on Litecoin with the recent emergence of LRC-20 tokens.

2/ Up until Doginals, itā€™s been quiet in Doge land

Other than the short-lived Twitter logo change, there hasnā€™t been much excitement around Dogecoin recently.

But Doginals are the first time new innovation has been brought to Dogecoin. And it could bring a spark to the network like Ordinals did for Bitcoin.

We wanna hear from you, Roadies! Have you experimented with Doginals?

VISUAL OF THE DAY: $54M IN CRYPTO OUTFLOWS šŸ“‰

Thereā€™s been $200M in digital assets flowing out of crypto funds within the last 4 weeks. Last week alone saw $54M in outflows.

Why? Crypto prices slipped last week, especially BTC.

It dropped below $26K last Friday. *shudder* So it makes sense that people might be exiting with the recent dips.

$160M of the $200M in outflows in the past 4 weeks was Bitcoin, too.

Weā€™ve come a long way from that brief but blissful $30K price level in Aprilā€¦

MILK & COOKIES šŸŖ

The UK wants to lump crypto regulations in with gambling and lottery. A sharp 180 from the ā€œRoyal Mintā€ NFT initiative they dropped this past March.

Apple allows Axie Infinity crypto game on the App Store. Axie Infinity: Origins will be available in a select number of countries throughout Latin America and Southeast Asia. Axieā€™s token jumped 12% when the news dropped.

Ripple is buying a crypto custody firm for $250M. The deal will expand Rippleā€™s enterprise offerings for digital asset custody, issuance, and settlement services.

Coinbase has been posting a countdown on their Twitter page. No info has been released, but PEPE holders are speculating. šŸ‘€

MILKY MEMES šŸ¤£

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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.

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