Crypto Roundup: Your Weekly Dose of Cryptocurrency News and Tips
At the beginning of every baseball season, I like to go back and rewatch Major League II. It’s the rare sequel that’s better than the original (don’t email me about this).
To paraphrase the words of Lou Brown, manager of the Cleveland Indians:
OK, we won a game yesterday. If we win today, it’s called “two in a row.” And if we win again tomorrow, it’s called a “winning streak”… It has happened before!
Welcome to the third edition of Crypto Roundup.
Crypto investors can probably sympathize with that sentiment. In fact, despite the slings and arrows thrown their way by the SEC, hackers, and malicious fraudsters, things are looking pretty good lately.
We’ll get to all that and more in just a moment. But first, let’s recap how this works.
Crypto Roundup aims to bring you the latest happenings in the crypto world in bite-sized nuggets. Whether you’re new here or have dabbled in cryptocurrency since before it was cool (look at you, you hipster), we’re here to sift through the noise and hype to give you what you need to be informed and make an investment decision. And, as always, each edition will feature a fresh Crypto Tip of the Week.
In this edition, we’re covering a lot of ground, from Black Rock’s about-face on crypto to a new record for BTC Holders and a special word from my friend Jimmy Butts, who has an interesting theory to share with you… 🤔
Larry Fink Loves Bitcoin All Of A Sudden…💰🤡🪙
BlackRock CEO Larry Fink once referred to Bitcoin as an “index of money laundering.” But now, it seems he is changing his tune, including going on Fox Business to sing bitcoin’s praises.
It seems that the pressure from BlackRock’s clients, who are increasingly interested in the potential of digital assets as a protection against inflation and geopolitical risk, has led the world’s largest asset manager to rethink its perspective. How convenient! (source: CoinDesk)
Snark aside, whether you like it or not – when BlackRock makes a move, the rest of the finance world pays attention. So this change of heart could be a strong signal for other financial institutions to take cryptocurrencies more seriously.
The Bitcoin HODLers are back, baby!🚀💸📈
Here’s a bit of bullish news you might have missed. Ark Invest recently issued a report showing Bitcoin just broke a new record for the amount of circulating supply that hasn’t moved for a year or more. Of the 19.4 million bitcoin in circulation, nearly 70% has stayed put for a year (or longer).
Translation: What does that mean for investors? A strong holder base, likely spurred by all the positive talk about growing institutional interest and a possible Bitcoin spot price ETF talk, has BTC holders feeling warm and fuzzy. And with long-term holders sitting on a finite supply of BTC, it’s just that much less to go around for newbies, which should (theoretically) lead to higher prices.
🕵️♂️And Now, A Word From Jimmy Butts…
A few weeks ago, I said that the recent attacks by the SEC and politicians on cryptocurrency could be seen as a good thing. Over at Capital Wealth Letter, I specifically said:
“There has also been a lot of heat coming from the government. And while we don’t want to mess the US government — a usually unprofitable endeavor — it also tells me that cryptocurrencies are here to stay. After all, the government doesn’t go after something it deems “worthless.”
Since then, the attacks have leveled up. Perhaps this was all a distraction so traditional finance (aka TradFi) could sneak in the backdoor.
What do I mean? With the US government launching everything it could at major crypto players, TradFi has been plunging head first into crypto.
Wait, what? Yeah, typically, if there’s a house on fire (which one could argue the crypto world was on fire), you don’t go running in. But that’s exactly what TradFi did… Supposedly.
Heavyweights Charles Schwab, Fidelity, and Citadel teamed up to launch EDX Markets, an exchange to trade cryptos. One caveat is that it’s only open to the big boys in the room (institutional investors) at this time. It’s not just them jumping into crypto, either…
- BlackRock (the biggest name in town with $10 trillion in AUM) filed for a Bitcoin ETF.
- Invesco filed for a Bitcoin ETF.
- Deutsche Bank applied for a license to run a crypto custody service.
Perhaps it wasn’t a housefire… just a smokescreen.
Crypto Tip of the Week: Big Things Often Start Small…
If you’re just starting out with cryptos, don’t feel like you have to go big or go home. Open an account at an exchange, like Coinbase, and buy a small amount of bitcoin at first as a test. (We recommend $500 or less.) As you get comfortable, you can scale up from there. But whatever you do, remember, don’t bet the whole farm.
That’s a wrap for this week’s look into the realm of cryptocurrency. But fear not! We’ll be back to satiate your crypto curiosity next week. In the meantime, if you like what you’re reading, feel free to drop me a line or pass this along to friends (or both)!
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