GM. This is Milk Road – the newsletter that delivers crypto insights as if we were chatting over a beer.
Here’s what we got for you today:
- ✍️ Buying the top = winning strategy?
- ✍️ Milk Busters: yield-bearing stablecoin edition
- 🥛 PRO “Where are we in the cycle?” indicators
- 🎙️ The Milk Road Show: Milk Road's Macro Framework: How The Big Picture Empowers Crypto Investors w/ John Gillen
- 🍪 Not bullish on LSTs? You should be
Chainlink is the global standard and platform integrating the world to the onchain economy. They just announced the “Chainlink Reserve”, read more about it here.
Prices as of 2:00 PM ET. Click here for our Fear & Greed Index.
BUYING THE TOP = WINNING STRATEGY? 🤨
Something I try to constantly remind myself:
When you’ve bagged a winner – let it ride.
I’ve fallen ass-backwards into some great investments over the years (at no fault of my own – I simply bought what my friends were yapping about).
- Tesla at ~$20 (currently at ~$320)
- Bitcoin at $8k (currently at ~$116k)
- AfterPay at $3 AUD (peaked at ~$150 AUD)
But did I ride these stallions to the top? Nope. Not even close.
So lemme reframe some common thinking for you…
Everyone likes to drive home the importance of buying-in at the right price, but I’m going to take the opposite side of that argument and say:
When it comes to fundamentally strong assets, buy price is a nothing burger – it’s all about when you sell.
Lemme hit you with an example…
Say you bought Bitcoin at the peak of every. single. cycle (buying 1 $BTC at the tippy-top of each). 😰
$1,163 in 2013 → $19,666 in 2017 → $69,000 in 2021. 👇
All told, you would’ve spent $89,829 on 3 $BTC…
(That same dollar investment would’ve landed you ~77 $BTC, had you gone all-in back in 2013.)
But here’s the thing – even if you had followed this path and bought at the worst possible price throughout each cycle…
That $89,829 investment would now be worth $349,089 – leaving you with a 288% gain (roughly quadrupling your money).
Note to self:
Stop losing sleep trying to find the perfect entry price – and if you find a winner…
For Christ's sake, let the thing run.
CHAINLINK UNVEILS STRATEGIC LINK RESERVE
Ever wonder how Chainlink will accelerate its dominance across DeFi and TradFi?
With trillions in tokenized assets set to come onchain, the answer is no longer a mystery.
Introducing the Chainlink Reserve: a strategic reserve of LINK tokens.
Here’s how it works:
- Funded by onchain and offchain revenue from large enterprises adopting Chainlink
- Accumulates LINK over time
- Built to support the long-term growth of the Chainlink Network
Demand for Chainlink has already created hundreds of millions of dollars in revenue.
With Chainlink being uniquely positioned to power and benefit from the accelerating tokenization wave, the strategic LINK reserve is the jet fuel that propels Chainlink’s journey there.
Read more about the Chainlink Reserve here.
MILK BUSTERS: “THE GENIUS ACT WAS BEARISH FOR YIELD-BEARING STABLES” 🕵️♂️
Huh?
The GENIUS Act gave the regulatory green light to ‘payment’ stablecoins in the US…
But didn’t include a framework for yield-bearing stablecoins, like Ethena’s $USDe – essentially leaving them in a regulatory grey area…
So why is $USDe’s supply absolutely ripping right now? 👇
Short answer: Payment stablecoins are banned from offering yield under the GENIUS Act…but $USDe isn’t considered a ‘payment’ stablecoin under the Act’s framework.
Longer answer: By banning payment-focused stablecoins (like $USDC and $USDT) from offering yield – the GENIUS Act essentially axed any potential competition from the two largest stablecoin issuers and handed that chunk of the market over to projects like Ethena.
Plus: If the feeling takes them, Ethena can still offer GENIUS-compliant products (like their $USDtb stablecoin) to U.S. institutions that require regulatory clarity.
As a result, Ethena’s $USDe has added $3.6B to its total supply since July 18, pushing it to become the third largest stablecoin by market cap.
…meanwhile, Ethena’s native token $ENA pulled an ~87% gain (bottom to top) in the same time frame. 👇
So while ‘no regulatory green light for yield-bearing stablecoins’ reads as bad news at first glance – turns out it’s actually a godsend!
(Bearish headlines → bullish results? We’ll take it!)
P.S. Keen to trade $ENA and/or $USDe? Milk Road Swap has got you covered!
CRYPTO PRO “WHERE ARE WE IN THE CYCLE?” INDICATORS 🤔
Oooft, so – we got a pullback! (That’s no fun.)
So is the worst behind us – or is there more to come?
That’s what we’re talking about in today’s “Where Are We In The Cycle?” section – where we track 6 key indicators that are crucial for capturing the best opportunities.
Below are the 6 indicators we track, with a color-coded system to show how close they are to signalling the market peak:
🟢 Plenty of room to run 🏄
🟡 Getting closer to the top signal, but haven’t yet reached the mark ⚠️
🔴 We’ve hit the market top indicator 🚨
Every Thursday, we update these 6 indicators exclusively for PRO members.
Our advice? Don't wait for all of them to hit 🔴. It's better to take profits as they get closer to that point.
Let's dive in and see if we're anywhere near the top of this bull market. 👇
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GO CRYPTO PRO AND UNLOCK:
- Full access to the 6 bull market peak indicators above to help you spot the bull market top before it’s too late 📈
- Weekly reports that help you spot early trends, navigate the markets by limiting risk & catch those sweet cha-ching moments 💰
- Access to the PRO Community, where the Milk Road crew & 1000s of fellow PROs talk crypto. 🫂
Already a Crypto PRO member? Log in here.
CRYPTO PRO REVIEW OF THE WEEK
BITE-SIZED COOKIES FOR THE ROAD 🍪
The $NIGHT airdrop is set to go live by August 10. If you hold $BTC, $ETH, $SOL, $XRP, $BNB, $AVAX, $ADA, or $BAT, there’s a good chance you’re eligible.*
Send it! Today, Trump is set to sign an executive order that allows 401(k)s to hold crypto (these retirement accounts hold TRILLIONS).
Not bullish on LSTs? You should be. The SEC just clarified its views that liquid staking tokens are NOT securities.
Money printer go brrrr? Will ‘Treasury QE’ continue pumping cash into the US financial market and growing our bags? Find out in today’s edition of Milk Road Macro!
500x leverage. Tokenized stock trading. No KYC for small transactions. Yep, BTCC offers all of that and we just dropped a full review of the platform.
*this is sponsored content.
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