GM. This is Milk Road, the ‘bifocal glasses’ of crypto newsletters (we bring everything into focus).
Here’s what we got for you today:
- ✍️ Mapping the effects of rate cuts on alts
- ✍️ $SOL treasuries: why the sudden excitement?
- 🎙️ The Milk Road Show: How Bitcoin is About to Shock the Whole Market & Kickstart Altseason w/ Julio Moreno
- 🍪 Chainlink ETF anyone?
Babbel helps you master new languages quickly. Grab lifetime access today for just $199.
Prices as of 2:00 PM ET. Click here for our Fear & Greed Index.
MAPPING THE EFFECTS OF RATE CUTS ON ALTS 🗺️
A buddy of mine recently asked why I was so chipper.
I went off on a long and rambling tangent that could have been condensed to: “Jerome Powell. Rate cuts. Altcoin season.”
He couldn’t make any sense of it (“what the hell do central bank rate cuts have to do with your silly internet money?”)
So John, buddy – this one’s for you (sorry I wasn’t more clear in person):
When the Federal Reserve cuts rates, it makes everyone’s loan/credit repayments cheaper, giving businesses/individuals cheaper access to capital and giving them extra spending money.
…and some of that extra spending money finds its way into crypto.
The biggest winners of that new cash flow? The smaller crypto assets that require less investment to move up (pretty much anything outside of Bitcoin and Ethereum).
E.g. If you were to add $10B to $ETH today, it would move ~2%, but add $10B to $SOL and it would move ~10%. Same investment. Outsized results.
Alright, sounds cool on paper. But what does this look like in practice?
Let’s check to see how the TOTAL3 crypto market cap (the total crypto market cap, minus Bitcoin and Ethereum) has moved in reaction to these cuts historically….
1/ 2019: 0.75% total cuts
TOTAL3 gains over the 12 months following the first cut (start to top): 57.39%.
Additional levers that could have hurt/helped prices: the COVID crash.
2/ 2020: 1.5% total cuts
TOTAL3 gains over the 12 months following the first cut (start to top): 720.53%.
Additional levers that could have hurt/helped prices: COVID recovery & stimmy checks.
3/ 2024: 1% total cuts
TOTAL3 gains over the 12 months following the first cut (start to top), so far: 109.43%.
Additional levers that could have hurt/helped prices: the election of a pro-crypto president.
Add it all together and you get this:
The TOTAL3’s gains over the 12 months following the previous 3 tranches of rate cuts (start to top) have averaged 295.78%.
…and as it stands right now, it looks like a new tranche of rate cuts is likely going to begin next month.
That’s why I’m so damn chipper!
P.S. Johnny boy, if you want a closer look at the upcoming rate cuts – check out today’s edition of Milk Road Macro.
(And if you’re not yet allocated, Milk Road Swap has you covered across Ethereum and Solana-based alts.)
BEST DEAL OF THE YEAR!
Feeling the end-of-summer blues?
Fix that by learning a new language with Babbel.
With Babbel, you can start having real conversations in as little as 3 weeks.
Here’s why it works:
- No expensive classes
- No gimmicky gamified apps
- Just expert-crafted lessons designed to help you speak confidently
And right now, you can get lifetime access for just $199 (down from $299 — a 33% discount).
One-time payment. Access to 14 languages. Lifetime learning.
Grab lifetime access today for just $199.
$SOL TREASURIES: WHY THE SUDDEN EXCITEMENT? 🤔
There’s a bunch of fresh excitement around these two new public Solana Digital Asset Treasuries (DATs)...
This one from yesterday:
And this one from earlier this morning:
…but why all the enthusiasm?
We already have a handful of Solana DATs and none of them have sparked the same interest as their $ETH contemporaries – what are another couple of $SOL DATs really going to do?
Let’s look at what worked for Ethereum…
$SBET and $BMNR are the two big names in the $ETH DAT space. But they weren’t the first.
…so why are they the two that garnered the most hype?
The one thing that made the difference:
Big names, making big buys, both of which added a new narrative to an asset in need of fresh momentum.
(Ok, so three things.)
Point is – these two new Solana DATs are ticking those same boxes for $SOL.
Lemme bring it all into view by looking at the current market landscape:
Right now, the leader of the Solana DAT space is $UPXI, with a $SOL treasury worth ~$375M.
By making purchases of $1B and $1.25B respectively, these two companies would become the largest $SOL DATs in the world at today's prices, outpacing $UPXI by ~3x. 👇
Still not feeling it? Try this on for size…
$BMNR, the largest Ethereum DAT in the world, has spent roughly $7.5B to acquire 1.4% of the total Ethereum supply.
With a combined $2.25B purchase, these two rumored $SOL DATs would own ~2.2% of the total Solana supply between them.
Smaller investments → bigger supply shock → greater potential effect on price.
(Hence: the enthusiasm.)
PRO ALL ACCESS PORTFOLIO UPDATES 📊
Macro outlook: bullish.
Price action: sideways.
(Errr…is this a good or a bad thing?)
We’re answering exactly that in this week’s Milk Road PRO Portfolio update!
Upgrade to PRO All Access and keep scrolling to find out. 👇
Disclosure: We are not a day trading portfolio so don’t expect a high volume of trades. Read our “How To Build a Crypto Portfolio” report to learn more about our portfolio strategy.
Portfolio performance 📉
The Milk Road PRO Portfolio saw a moderate decrease over the past 7 days. Our portfolio value is at $201.9K, down 1.97% since last week.
Portfolio prices are updated daily at 6:00 AM ET.
We’re basically flat compared to last week. The quick jump we saw on Friday after Jerome Powell’s comment on rate cuts didn’t stick, and the market has already slipped back down.
Some people are already saying we’ve hit the top, but we don’t see it that way.
Most signals still look pretty bullish to us.
PS: If you haven’t checked out the latest PRO report yet, give it a read here— it breaks down the macro picture in detail.
Portfolio changes 👀
The Milk Road PRO All Access Portfolio is exclusive to PRO All Access members.
Already a PRO All Access member? Log in here.
GO ALL ACCESS AND UNLOCK:
- The Milk Road PRO All Access Portfolio — See what we’re investing in, how we’re allocating capital, and what actions we’re taking each week (buy, sell, hold, watchlist) ✅
- Weekly “Where Are We In The Cycle?” Indicators — Signals that help you spot the market top before it’s too late 📈
- Weekly Reports Across Crypto, Macro & Degen — Deep dives, token breakdowns, market analysis, and investing frameworks that give you the edge 🧠
- Access to the Milk Road Community — Full Discord access including signals, AMA invites, portfolio update calls, and exclusive All Access channels 💬
- FREE Crypto Investing Masterclass — Included with all annual All Access subscriptions (30% off for monthly) 🎓
Already a PRO All Access member? Log in here.
PRO REVIEW OF THE WEEK
BITE-SIZED COOKIES FOR THE ROAD 🍪
The crypto market is heating up… and so is our audience. With 350,000+ crypto-native readers, there’s no better time to get your brand in front of them.
Confused about all this rate cut stuff? Here's what happened at the Fed’s Jackson Hole symposium, in simple terms.
[Loud eating sounds intensify] $SBET just gobbled up another $252M worth of $ETH, with $200M more in dry powder ready to deploy.
Chainlink ETF anyone? ETF big dogs, Bitwise, just filed an S-1 with the SEC to launch a spot Chainlink ETF.
Want to earn up to 12% on your crypto? Nexo offers high yield products on nearly 40 cryptocurrencies.**
**this is partner content.
RATE TODAY’S EDITION
What'd you think of today's edition?
MILKY MEMES 🤣
ROADIE REVIEW OF THE DAY 🥛
VITALIK PIC OF THE DAY
