Today’s edition is brought to you by PayPal - the PayPal stablecoin PYUSD is live on Solana.
GM. This is Milk Road, the crypto newsletter that's as energizing as a triple-shot espresso, without the jitters.
Here’s what we got for you today:
- ✍️ Prices are dropping… here’s why
- ✍️ 4 key things to watch this week
- 🎙️ The Milk Road Show: The $100M crypto bet w/ Tyler D
- 🥛 We’re hosting an AMA this week
- 🍪 Metaplanet to buy $6.3M worth of Bitcoin
Prices as of 9:30AM ET. Click here for our Fear & Greed Index
PRICES ARE DROPPING… HERE’S WHY 📉
$BTC is down 5.15%, $ETH is down 5.6%, and the Milk Man is looking for the emergency chocolate stash. Here’s what the crypto market looks like over the last 24 hours:
Somebody decided to go ahead and paint the town red! 🩸 But what’s causing the drop?
Nobody ever really knows the answer. Markets are complicated, and there's no single, clear-cut answer to why something goes up or down.
But here are a few leading theories:
1/ Sell pressure from BTC miners ⛏️
The Bitcoin miners are dumping more $BTC than your uncle dumping his tech stocks after watching one too many doomsday predictions on CNBC.
Since June, they've offloaded $2M worth of $BTC, making it the fastest sell-off in over a year.
Total miner reserves have plummeted by 50,000 $BTC since the start of the year, dropping to the lowest level we've seen in the past 14 years. 🤯
And if that wasn’t enough, miner revenue has taken a nosedive this past month, which only adds more fuel to the sell-off fire. 📉
Looks like this is a nice lil effect from the Bitcoin halving, which reduced the miner fees.
2/ The German Government selling Bitcoin 🇩🇪
The Germans are offloading $BTC like they need beer and bratwurst money at the Euro 2024 matches. ⚽
Jokes aside, the German Gov sold $195M worth of $BTC last week – the coins were previously seized from the operators of a movie piracy website.
Right now, they still hold a whopping $2.87B in $BTC, but at this rate, it looks like they’re planning a yard sale that would make Gary Vee proud.
3/ More Mt. Gox FUD 🤦
Ah, Mt. Gox - the ghost of Bitcoin’s past. This once-prominent exchange, which was the world’s largest before its collapse in 2014, is back in the news.
The distribution of repayments in Bitcoin and Bitcoin Cash to creditors was originally planned for October…
BUT today we learned the date was moved up. 👇
The mere mention of Mt. Gox is enough to even make OG crypto investors break into a cold sweat.
This is significant because it involves a massive 140,000 $BTC, valued at approximately $9 billion.
To put this in perspective, the ETF net inflows for the year are around $15 billion. This influx of Bitcoin is like a giant whale making a splash in a kiddie pool - it’s bound to create some waves.
But don't panic yet. The impact is still uncertain — not everyone will sell their recouped coins, and whales might be eyeing this FUD closely.
Milk Road Take: Central banks are just kicking off their rate cuts and liquidity cycles. From a macro perspective, this bull market is just heating up.
Don’t let a 20% dipbuck you off the ride – expect plenty more dips over the next 12-18 months.
If you’re new to crypto, these price swings can be scarier than finding out your in-laws are visiting for a month. But they’re…
1/Normal – during the 2015-2017 bull market, over 13 different 20%+ pullbacks happened.
2/ Good for the markets – they flush out all the crap (i.e. over-leveraged investors ) and reset the markets. It’s a bit like a spring cleaning — messy but necessary.
Good news: You can use these pullbacks to your advantage. We have a banger report on how to structure your portfolio to prepare for 30%+ drops.
There’ll be plenty of them this cycle so read the report here.
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4 KEY THINGS TO WATCH THIS WEEK 👀
Alrighty fam, grab your popcorn and let's see what's on the menu for the rest of this week. 🍿
Hint: It's a blend of macro events, earnings reports, token unlocks & significant launches that could have some impact on your bags.
Let's get into it. ⤵️
1/ Macro stuff 📊
- CB Consumer Confidence - Tuesday: Wanna know how pumped people are about the economy? This one’s your go-to for future spending vibes.
- New Home Sales - Wednesday: Check out how many new digs are getting sold – a key indicator of the housing market’s pulse.
- Q1 2024 Final GDP - Thursday: The big kahuna of economic health checks. We’ll get a taste of how the economy’s really doing.
- Trump/Biden Debate - Thursday: This debate might shake up memecoin prices linked to the candidates. ($TREMP, $MAGA, $BODEN)
- May PCE Inflation - Friday: Peek into how prices for stuff we buy are moving. Inflation insights, baby!
- Fed Monetary Policy Report - Friday: Get the lowdown on what the Fed’s thinking about the economy and their next moves. Crucial stuff. Hopefully rate cuts soon. 👀
2/ Earnings reports 📈
As Q2 comes to a close, the stock market's earnings performance could send shockwaves through the crypto markets.
When stocks do well, investor confidence gets a boost and that optimism often spills over into the crypto world.
Highlights:
- Tuesday: FedEx, Carnival
- Wednesday: Paychex, Micron, Levi's, Concentrix, Jefferies
- Thursday: Nike, Walgreens Boots Alliance
Logistics, payroll, chip producer and consumer goods… looks like we have a melting pot of outlook sentiment coming.
3/ Token unlocks 🔓
We'll see $214.6M worth of tokens unlock this week.
Some highlights include:
- $YGG: $9.08M (4.48% of circulating supply) unlocks on Thursday.
- $OP: $53.91M (2.88% of circulating supply) unlocks on Sunday.
- $ENA: $8.41M (0.87% of circulating supply) unlocks on Sunday. Plus, Symbiotic launches the first $ENA restaking pools on Wednesday.
4/ BLAST airdrop 🪂
Blast's long-awaited token is almost here. The token generation event (TGE) and airdrop is set to go down on Wednesday.
Anticipation is high for what Blast's new incentives could be — will they keep the hype going post-token launch? We'll have to wait and see. 👀
Learn how to capitalize on the growth of Blast from Zeneca by tuning in on YouTube, Spotify or Apple Podcasts.
5/ We are hosting another AMA 🥛
A month ago, we hosted an AMA, which we later published on YouTube, Spotify and Apple Podcasts (make sure you tune in).
Interestingly, it ended up being a top performing episode — therefore, we’re bringing it back! 🥳
But this time, it’s for PRO members only — no more publishing on our podcast platforms. 🤫
Wen? Wednesday, the 26th of June at 12PM EST (5PM UTC).
Where? Inside the Milk Road PRO Discord.
Here are some of the topics we’re going to cover:
- Crypto Market Analysis: How can crypto grow to $10T by 2025?
- Portfolio Tips: How do you balance your portfolio to get exposure to the best assets?
- Yield Opportunities: Where do you get the best returns right now?
- Bitcoin: Where will $BTC be in the future and should you hold it?
To unlock access to this week’s AMA, upgrade your membership & join the Discord (instructions provided upon signing up).
P.S. By going PRO today, you’ll also unlock full access to our weekly reports, the Milk Road PRO Portfolio & many other PRO perks!
So, there you have it. Keep an eye on those statements, unlocks, launches, presidential debates and of course, our AMA this week! 😎
KNOW YOUR AUDIENCE: POLL QUESTION 🥛
We wanna make sure our content is as creamy and delicious as possible forYOU!
To do that, we need to understand why you subscribed and what you're looking to get from us.
Here’s the milky results from Friday's poll — it looks like a wild mix of crypto net worth across the board!
Vote in today’s poll and help us help you! 👇
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Your feedback is the secret ingredient to our recipe for success! 🥛
BITE-SIZED COOKIES FOR THE ROAD 🍪
Polymarket bettors have Trump crushing Biden by 22 points. Trump is shown with a 57% chance of winning, vastly different from national polls. With trading volume surging to $53 million a month, it seems the crypto crowd is betting big on the former president. — DL News
Tether stops printing USDT on EOS and Algorand. They stopped minting due to low usage, with EOS and Algorand making up less than 0.1% of USDT supply. Aiming to allocate resources to more popular blockchains.
Metaplanet Inc. to buy $6.3M worth of Bitcoin. The Japanese firm’s stock surged over 12% after announcing plans to buy Bitcoin with funds from a new bond issuance. With Japan's economy feeling the heat, they're turning to Bitcoin as a cool, digital oasis.
Solana's new ZK compression sparks heated debate. This new update aims to cut on-chain costs significantly, using zero-knowledge proofs and calldata. While Solana supporters cheer, Ethereum fans cry hypocrisy, claiming it's just a disguised Layer 2.
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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.
