Today's edition is brought to you by Polymarket - the world’s largest prediction market, providing real-time forecasts as events unfold.
Join the waitlist to create your own market.
GM. This is Milk Road. We stayed up till 4 am trawling Crypto Twitter, so you don’t have to!
Here’s what we got for you today:
- ✍️ Trump won – here’re the finer details you might have missed!
- ✍️ Ready, set, banana zone! 🍌
- 💡 Why the hell are we still holding $ETH?
- 🎙️ The Milk Road Show: Will The US become the Crypto Capital of the World? w/ Lark Davis
- 🍪 Solana flips $BNB to become the 4th largest token by market cap
Prices as of 2:00PM ET. Click here for our Fear & Greed Index
TRUMP WON – HERE’RE THE FINER DETAILS YOU MIGHT HAVE MISSED! 👀
Intro?
Nope. No time.
Our fingers will already be working overtime today.
Here’s everything you need to know…
1/ ICYHBLUARADRTH: Trump won
[👆 In case you have been living under a rock, and didn’t read the headline].
Here’s what the crypto sector is hoping for/expecting from a Trump presidency:
- The world’s first DeFi founder / sitting President
- Clearer regulation and less guard rails on markets in general
- A US strategic Bitcoin reserve (aka: a $BTC-backed rainy day fund for the US)
2/ Going anti-crypto is not a winning strategy (and we have the data to prove it)
Here’s an A/B comparison of how it all shook out in the House/Senate elections:
Note: Going anti-crypto may not be a winning strategy – but it doesn’t necessarily mean it's a guaranteed losing strategy.
Elizabeth Warren, the loudest anti-crypto voice of them all, still comfortably held her spot in the Senate:
(Curious about which pro-crypto senators won or lost? Check out standwithcrypto.com)
3/ Our namesake is being set free
Ross Ulbricht, creator of the ‘dark web superstore’ Silk Road, has been promised a pardon on day 1, by Trump.
4/ Gary Gensler begins his job search?
Speaking of day 1 promises, Trump has also vowed to kick out anti-crypto SEC Chair, Gary ‘Gare Bear’ Gensler.
5/ Bitcoin hit all-time highs
It’s been a WILD twenty-four hours – and this is only the beginning.
There’s still more positive market action expected in the near future. 👇
As always, we’ll hand-deliver everything to you as it unfolds. 🤝
INTRODUCING “CREATE YOUR OWN MARKET”
Prediction markets entered the mainstream this election cycle, all thanks to Polymarket. ⚡
And now… (drumroll, please 🥁🥁) Polymarket is excited to announce “Create Your Own Market” — coming soon.
With billions and billions traded already, Polymarket has become the largest prediction marketplace in the world… and soon, anyone will be able to create their own markets to share with the world. 👀
👉 Join the waitlist to create your own market! 👈 (Milk Man’s already signed up, have you?)
Disclaimer: Forecasts available worldwide, trading not available in US and other restricted jurisdictions.
READY, SET, BANANA ZONE! 🍌
Ok, so we all know the recipe for a Raoul Pal-patented ‘Banana Zone’...
Let’s go through the basic ingredients that are required to first get us cooking – as well as the extra additives that could sweeten the whole thing.
Here’s what we have on hand as far as basic ingredients are concerned…
1/ Central bank monetary policy easing ✅
Central banks around the world are making it easier for individuals and businesses to access loans, and lowering their repayments on existing debts, by decreasing interest rates and handing out cash to banks.
More money in everyone’s hands = more money eventually finding its way into crypto.
2/ The US dollar weakening ❌
When the US dollar weakens, investors move their money out of cash and into higher yielding assets (like stocks and crypto), lifting market prices in the process.
The US dollar is still strong right now, so this ingredient is still on the shopping list.
3/ The US Presidential Elections behind us ✅
As we keep saying: markets love certainty.
And now that the presidential race has finished, the market can start allocating with more certainty.
4/ Regulatory clarity + TradFi rails for the biggest dog in the yard ($BTC) ✅
TradFi (2021): “If we’re going to buy Bitcoin, we don’t want to have to worry about custodying it – and we need to be sure that the SEC isn’t going to come after us for holding it.”
Crypto sector (2021): “Best we can do is FTX.”
Flash forward to today, and Bitcoin has not only received a regulatory green light in the US, but there are a range of Exchange Traded Funds (ETFs) that will buy and hold Bitcoin on behalf of investors.
Three out of those four base ingredients could well be enough to bring us to the zone of long yellow fruit. 👇
But what about the extra additives that could sweeten the whole thing – the kinds of ingredients that only come with a Trump presidency?
5/ Altcoins get the Bitcoin treatment ❌
If alts get the same regulatory confirmation that Bitcoin did earlier in the year, it will give US institutions/developers the green light to invest/build.
This means it won’t just be $BTC carrying the load as far as broad crypto market appreciation goes, and would likely lead to a greater overall crypto market cap.
This is yet to happen, but a Trump presidency makes it way more likely.
6/ A Bitcoin strategic reserve in the US ❌
Lemme go “full-incel” for a second and hit you with a Joker quote:
If the US government creates a strategic reserve with its existing seized Bitcoin holdings – it won’t do much at face value (the US already owns the Bitcoin it plans to put in the reserve).
But the message it sends will be massive:
“We no longer see Bitcoin as seized property that needs to be liquidated. We now see it as a valuable strategic asset.”
And if the US does this, others will follow.
7/ More room for narratives to run ✅
Now that the largest financial superpower in the world (the US) is promising to ease its stranglehold on the crypto industry – the ceiling just rose for all the crazy narratives out there.
Will they be realized? Probably not.
But narratives are fueled by potential, not reality.
The more perceived potential → the more dollars tend to be invested over time.
The takeaway: some people might not be aware of it just yet, but ‘The Banana Zone’ likely just started.
WHY THE HELL ARE WE STILL HOLDING $ETH? 😵💫
When we revealed our personal portfolio’s last week, many of you noticed something 👆
Some of our team has an overall lack of $BTC and what could be called ‘an excess’ of $ETH.
But for our team members that hold $ETH – this isn’t an oversight. It’s intentional.
See, they cycled out of $BTC as it reached new all-time highs earlier in the year, and now they’re taking those profits and cycling it into $ETH.
The goal being: buy an undervalued asset, right before the bull run begins.
The key to not getting rekt when taking on greater risk like this is to know where we are in the four year Business Cycle (which tracks the expansion/contraction of the global economy).
Knowing what stage of the cycle the market is in helps them to:
- Allocate to the right tokens
- Gauge when to buy, and when to sell
- Minimize risk and maximize profits along the way
If you want to know exactly how to do the same thing, we’ve compiled all of our learnings into a free guide.
Just click below → leave your email → and we’ll send you the full guide 😊
BITE-SIZED COOKIES FOR THE ROAD 🍪
BakerFi is whipping up winning DeFi strategies to serve delicious returns for your sweet tooth with 1-click strategies. By combining yield from top protocols, they offer automated and low-risk yield-generation strategies.*
VanEck expands its crypto lineup with a $PYTH ETN. Why $PYTH, of all assets? Who knows. What we do know is that more institutional interest can only be good for the space.
Uniswap, Aave and other DeFi tokens surge amid Trump’s victory. That DeFi renaissance we’ve all been waiting for? Yuh. We can finally see it on the horizon.
Solana flips $BNB to become the 4th largest token by market cap. “Suck it CZ” — Chevy. To be fair, I’m not in the position to really be chirping like that. $BNB is up 87% YTD vs. $SOL’s 71%. Just stoked to see $SOL kicking goals!
Bitcoin shorts are getting rekt after the $75K ATH. Crypto Twitter is all flowers and rainbows right now, but can you imagine the folks who chose to short Bitcoin? Brutal. *this is sponsored content
MILKY MEMES 🤣
RATE TODAY’S EDITION
What'd you think of today's edition?
Login or Subscribe to participate in polls.
ROADIE REVIEW 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.
