GM. This is Milk Road, where we serve crypto insights on a silver platter, no silverware needed.

Here’s what we got for you today:

• Crypto catalysts on the horizon 🌅

• Coinbase’s new wallet feature 💵

• Chart of the day: Weekly crypto fund flows 📊

• FTX escaping 99% of their tax bill 🍪

CRYPTO CATALYSTS ON THE HORIZON 🌅

The macro economy and the crypto world are cooking up the perfect storm, and it’s about to rain crypto gains! 🌧️

Today, we’re digging into some juicy data that shows why this rocket is about to launch. 🚀

1/ Macro Signals: Time to Print

Crypto’s booms and busts are directly connected to the global macro environment, so what better place to start the bullish catalysts for crypto than here.

First up, central banks are on a rate-cutting spree.

The European Central Bank is estimated to drop interest rates by 0.25% to 4.25% tomorrow, following seven straight months of cooling inflation across the old continent. 

And it’s not just the ECB—central banks everywhere are joining the rate-cutting fiesta, with Canada cutting its interest rates by 25 bps today! ✂️

This trend of countries cutting rates left and right is just picking up, and the US of A may be next. 

Why?

Weak US Labor Market: JOLTS (Job Openings and Labor Turnover Survey) are at the lowest level in over 3 years (from 12.2k in Mar 2022 to 8k in Apr 2024). 

In plain english: Companies aren’t hiring as much as they used to which means jobs are hard to come by.

At the same time, oil prices are down—lookin like a memecoin chart! 📉

Crashing oil prices usually mean that the demand for goods is slowing (everything we consume requires oil to deliver it).

Rate cuts + less jobs + crashing oil prices = the Fed can take the breaks off the economy (aka lower interest rates).

In turn we will see: cheaper loans, more spending, and a boost for the economy.

And the market is already reacting, with the DXY (aka U.S. Dollar strength) looking weaker than a wet noodle! 

When the dollar weakens, it’s a field day for risk assets (like our beloved crypto).  

It's all thanks to the sentiment that the U.S. is ready to fire up the money printer and drop rates, putting the dollar on a diet. 🤕

We're gearing up for the next big boost in this bull market... all while at the same time some big things are happening in crypto. 

2/ Crypto's Golden Indicators

Key metrics are hitting all-time highs (ATH), showing just how much excitement there is in the crypto space right now: 🥇

Active addresses onchain: People are partying on the blockchain like it's a Gatsby shindig reaching 42.9M active addresses. 

Verified smart contracts launched: More smart contracts than Chat GPT can count, breaching the 60k mark for new apps launched.

Developer interest: Coders are flocking to crypto like it’s the latest tech playground (because it is), marking new highs.

Bitcoin and Ethereum on the Move: Both assets are jumping off exchanges like it's the Titanic, signaling positive sentiment and even a potential supply crunch. 🚢

The Buzz is Real: Google searches for "onchain" are skyrocketing, hitting an all-time high interest. The crypto hype is as real as a pizza craving at midnight. 

The Takeaway? As the Milk Man loves to say, "Bad news is good news for our bags!" 

With the US economy needing a boost, central banks cutting rates, and a weakening dollar, the money printer is ready to go BRRR, and Powell's got his finger on the trigger. 

Crypto couldn't be in a better spot to benefit from this. 

Want more? This is just the appetizer. Tune in to today's episode of Milk Road Radio with Kyle and Jay for the full scoop in just 20 minutes!

COINBASE SMART WALLET GOES LIVE TODAY 💵

Big news this morning: Coinbase is set to officially launch a new product. They’re bringing the heat for Onchain Summer, and we’re here for it! 

There’s even a free mint waiting for you, if Base ever launches a token this might give you an edge 👀

Coinbase has just dropped their latest game-changer: a smart wallet that’s packed with features so cool, you’ll wonder how you ever lived without them. 

This isn't just any wallet – it’s a leap into the future of onchain transactions. 

Here’s what’s got us buzzing:

• Instant Wallet Creation: Create a new wallet within any dApp using just a passkey (i.e. face id) – no additional app downloads, extensions, or seed phrases required.

• Fully Portable: Manage balances across platforms and use the wallet in any of the thousands of EVM-compatible dApps already integrated with the Coinbase Wallet SDK.

But there’s one key feature that caught the Milk Man’s eye: the ability to send tokens as easily as sending a text…

Why does this matter? Imagine being able to text your friend some Bitcoin or Ethereum just like you’d send them a Venmo payment. 

No more complicated addresses or lengthy processes – just type, send, and boom, it's done.

This is a huge leap from the current state of traditional finance (TradFi), where sending stocks or other financial assets requires a whole lot of red tape, and often, an OTC (Over the Counter) broker.

Traditional banks take their sweet time with transactions, holding onto your money as long as possible. But with Coinbase’s new smart wallet, sending crypto is instantaneous. 

Time value of money? Coinbase gets it, and they’re not here to waste a single second. 

This drive for adoption of the masses is “One small step for degens, one giant leap for crypto-kind” – The Milk Man

Implications for Mass Adoption:

• Ease of use: Coinbase is making crypto transactions so simple that even your grandma could do it, lowering the entry barrier for countless new users.

• Increased adoption: By streamlining the process, Coinbase is paving the way for cryptocurrencies to become a part of everyday life, pushing us closer to widespread mainstream adoption.

• Tech advancement: This feature represents a significant step forward in merging finance and everyday technology, showcasing the potential of blockchain to revolutionize how we handle money.

Coinbase continues to push the envelope, making crypto transactions as easy as texting.

As more people jump on this train, we're looking at a future where sending digital assets is as common as sending a selfie.

Buckle up, Roadies – the journey to mass adoption just got a turbo boost! 🚀

We want to know, how pumped are you for Onchain Summer 2.0?

A/ Juiced - participated last year and ready to again!

B/ Excited - ready for my first Onchain Summer

C/ Meh - more of an offchain winter person

Hit reply and let us know your thoughts!

CHART OF THE DAY: WEEKLY CRYPTO FUND FLOWS 📊

The weekly fund flows are in! Last week we saw solid inflows of $185M to cap off a great month.

May saw a whopping $2B in inflows, pushing year-to-date inflows past the $15B mark for the first time on record! 🎉

Let’s dive into the numbers…

Here’s the scoop:

• Bitcoin ($BTC): The king of crypto led the way with a staggering $148M in inflows. 

• Ethereum ($ETH): Our beloved $ETH saw inflows of $33.5M last week, marking for the 2nd consecutive week of inflows. After a 10-week outflow streak totalling $200M, this is a welcomed turnaround.

• Solana ($SOL): Riding on Ethereum’s coattails, Solana saw $5.8M in inflows last week. 

• Blockchain Equities: Despite the success in direct investments, blockchain equities took a hit with $7.2M in outflows last week and a whopping $516M this year.

Looks like the crypto fund market is catching fire, with Bitcoin leading the charge and Ethereum making a comeback. With these inflows, it seems the crypto world is heating up faster than a GPU in a Las Vegas heatwave. 

Keep your eyes on the prize, Roadies, because this crypto rocket might just be gearing up for liftoff! 🚀

BITE-SIZED COOKIES FOR THE ROAD 🍪

Crypto Email Breach Raises Security Concerns. Tether CEO Paolo Ardoino shinned light on a compromise by a prominent email vendor used by crypto companies. All the phishing emails going out have inboxes looking more phishy than a sushi restaurant on a Saturday.

FTX Negotiates Tax Settlement with IRS. FTX, the bankrupt cryptocurrency exchange, is negotiating a potential settlement with the IRS over a tax bill dispute, agreeing to pay the IRS $200 million upfront on their $24B tax bill.

DMM Bitcoin Raising Capital to Compensate Hack Victims. Japanese exchange DMM Bitcoin is raising $320 million to compensate users from a hack that lost over $300 million in Bitcoin. They're having to take out loans to pay back their loans!

BNB Hits New All-Time High Despite Challenges. BNB, the native coin of Binance, has achieved a new ATH, reaching $708. This ATH happened despite Binance facing regulatory challenges in Nigeria and legal issues involving its founder CZ.

Wanna team up with the Milk Man? We currently have 2 positions open – check ‘em out and apply here!

MILKY MEMES 🤣

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ROADIE REVIEW OF THE DAY 🥛

ROADIE REPLY OF THE DAY 🥛

In yesterday’s daily we asked you: have you tried Polymarket yet? 

Well 56% of you voted Not yet, but I’m game!

And here is the reply of the day:

VITALIK PIC OF THE DAY

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.