Today’s Nuggets
Iran Saber Rattling Nerves
Mt. Gox HODLing Strong
Russia Legalizes Bitcoin for International Trade
Tether Holds $4.7B
The Bond Market Does Not Lie
Bank of England Cuts
Largest Whale Buying Since 2014
Mortgage Rates Drop to Lowest Level Since February
We are back at a time when bad news is bad news again.
The market has been hit by many economic woes, alongside some other fears. Everybody is wondering where the support level for Bitcoin is right now.
This story will break down the developments and try to find some signal and pattern amongst the noise.
Macro Update:
The ISM manufacturing PMI fell way below expectations. It was 46.8 versus 48.8, which means the manufacturing in this country is shrinking, which worries people.
Hershey's chocolate sales have crashed because people cannot afford it anymore. Things are bad.
Crypto Market Update:
The crypto market cap is $2.26 trillion, which was $2.4 trillion a few days ago.
Volume is high at nearly $90 billion.
The economic woes drove Bitcoin below $62.2K, as the concern is market turbulence.
Bitcoin is currently at $63,700.
The Fear and Greed is back to 52, which is kind of neutral.
MicroStrategy earnings just came out recently and are bad.
The problem is: You have to understand how earnings reports work because they look at earnings per share. The expected number was minus $1, which came out nearly minus $6. The company's revenue expectation was $121 million, and it came in at $111.
They have to book the losses on Bitcoin over the last 90 days.
Nobody likes war and I definitely do not.
I hate this stuff but Bitcoin does like a crisis. It typically does very well in crises.
Mt. Gox moved another $3 billion. A lot has been distributed but the creditors are not selling.
Mt. Gox has $2.1 billion left or 32,000 BTC.
Mt. Gox has repaid over 17,000 creditors in Bitcoin and Bitcoin Cash and most are still holding. However, everybody is very worried about it and the movement of the U.S. government, Bitcoin, too, brings things down.
You have to get used to the whipsaw of Bitcoin and this type of volatility in markets.
I analyzed this statement from Cramer. We will talk more about August and what it could mean for us.
Ash Crypto predicts that Bitcoin's new all-time high will be confirmed in August. I have another person coming up who says the same thing. We will break it all down when we get into the charts.
The central bank governor, Elvira, has this thing now…
It is an experimental infrastructure for these payments but they will use Bitcoin. This will help them overcome secondary sanctions and do business with other parts of the world, including places like El Salvador.
This is good for Bitcoin.
CleanSpark executes 75 megawatts of power contracts in Wyoming.
They have added enough capacity to expand at least two to three AXA hashes before the end of the year. The location in Cheyenne is planned to operate as a fully immersion-cooled site, and they intend to employ the new S21 Immersion XPs, the most powerful and efficient generation of Bitcoin mining machines currently available.
They will be adding another 3 exahash as well as they expand more in Wyoming. I like how CleanSpark sticks to its knitting, unlike other Bitcoin miners interested in HPC side rails. Maybe when the bear market comes, they can pivot if they have some excess capacity.
Right now, the focus should be on being the best Bitcoin miner, the leanest, most efficient, etc.
Tether's new all-time high in direct and indirect U.S. Treasury holdings, at $97.6 billion, is big!
There is more...
By the way, we all know that per Arkham, it is an up-bit wallet.
However, the behavior is very strange and sometimes, there is no such thing as coincidence. The activity on this wallet is very DCA-like, and I did mention Mr. 100 sold.
Whoever the wallet is, it does not look like a cold storage wallet for a centralized exchange. Upbit has been shrinking and has not been growing.
Mr. 100 just bought 200 more. They are back in the game!
They sold at $69K and bought back in at $63-64K, which is interesting.
Who knows who this is?
The longs were liquidated hard because of all this fear in the market.
This liquidation chart from CoinGlass shows the 24-hour Rekt ~$302 million worth of longs. Everything appears to have been wiped out, and typically, we go up from here.
All the action is to the right, so maybe you should now go after the shorts?
We shall see…
Bond traders are fully pricing in three Fed rate cuts this year, and the 10-year fell below 4%. This is another thing that is rattling the markets.
What is happening and why do we care?
If there is no money made by holding fiat, people
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