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GM. This is Milk Road. We monitor crypto news across 100+ browser tabs, so you don't have to! |
Here's what we got for you today: |
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STOCKS UP. CRYPTO SUFFERING.
HERE'S WHY 🤕 |
Can you hear that? |
That's the sound of your frumpy, traditional asset-loving uncle laughing. 😂 |
Since mid-to-late April, the S&P 500 has been on an upward trajectory, while Bitcoin (and the rest of the crypto market) has been trending down. |
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So why the divergence? |
Well, mostly for the same reason your frumpy uncle loves traditional assets/indexes like the S&P 500 – they're lower risk. |
And of late, the market's appetite for risk has been waning – meaning investors have been happy to buy the S&P 500's dips, and remained wary of doing the same in crypto. |
So what's it going to take to get them back on board the crypto train? |
Money. |
Like, lots of money. |
(And it needs to be pumped into the system at high volumes). |
The key to that: Rate cuts and quantitative easing (aka: QE). |
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Rate cuts lead to lower loan/credit repayments, which leads to more money in everyone's pockets, while giving everyone greater incentive to take out loans and start spending. 💸 |
While 'quantitative easing' is a needlessly technical term to describe what is essentially just a central bank shopping spree. |
Central banks begin purchasing shares in major financial institutions → helping to bolster their stock prices → which helps to push the rest of the market up over time. |
"Ok, so wen pump?"
– you, probably. |
The date to watch is September 18, 2024. 📅 |
That's when the Federal Reserve meets next to discuss/decide upon a potential rate cut – a rate cut that Fed Chair Jerome Powell all-but confirmed a few weeks back. |
Now – a cut won't instantly fix crypto's S&P divergence problem (it takes time for the market to psych itself into going risk-on). |
But each rate cut gets us one step closer to the fabled 'Banana Zone.' 🍌 |
And once we're there – we can all call our uncles and tell 'em to stick it (respectfully). |
But this price gap between Bitcoin and the S&P 500 isn't the only divergence we're seeing. |
Across much of the crypto ecosystem revenues, adoption and general use of blockchain technology are hanging out around all-time highs. 🚀 |
…yet prices are still in the toilet (what gives)? |
Today, on The Milk Road Show, Kyle Reidhead is joined by Mike Dudas (co-founder of 6thManVentures and previous founder of The Block and LinksDAO), to get an inside take on crypto's growing adoption and how to profit from it. |
In this episode, they discuss: |
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Click below to get the full 33 minutes and 15 seconds of insight 👇 |
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YouTube | Spotify | Apple Podcasts |
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WHAT TO WATCH FOR THIS WEEK 📅 |
Batten down the hatches and prepare for volatility, folks. |
This week's macro outlook is stacked with multiple (potentially) market moving events… |
1/ Macro events 📊 |
Here's what's on the agenda this week: |
US Presidential Debate - Tuesday: Crypto/financial markets tend to react positively to signs that Trump will win in November. All eyes will be on this debate! August CPI Inflation data (YoY & MoM) - Wednesday: Is inflation continuing to taper? We're about to find out… Initial/Continuing Jobless Claims data - Thursday: How many people are filing for unemployment for the first time (initial), along with those continuing to file/collect. August PPI Inflation data - Thursday: How much did the wholesale cost of goods increase in August? MI Consumer Sentiment data - Friday: A vibe check with consumers (are they ready to spend? Or tightening their purse strings?).
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Here's what we want to see: |
CPI and PPI continuing to cool, jobless claims staying relatively flat, and consumer sentiment meeting or beating forecasts. |
This should indicate that consumer earning/spending will continue, and help to reassure the Fed that lowering rates won't risk further upticks in inflation. |
The key metric to watch: Core CPI Inflation (as opposed to Headline). This is the metric the Fed relies upon the most when monitoring inflation. 👀 |
2/ Earnings 💣 |
Earnings Season (aka: the popularity contest measured in revenues, profits, and forward looking statements) continues! |
Here's who's taking center stage this week: |
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We'll mainly be focusing on Oracle this week – they sell cloud infrastructure and back-office apps across a range of US industries (including, but not limited to tech). |
If Oracle can continue to perform as it hovers around all-time highs, this will help to reflect ongoing/increasing demand from the businesses it serves. 📈 |
3/ Token unlocks 🔓 |
This week we're seeing $158.52M of unlocks from three well known projects: |
$APT: $69.89M (2.3% of circulating supply) $ARB: $47.67M (2.7% of circulating supply) $STRK: $26.66M (3.6% of circulating supply)
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Watch for potential outflows! 👀 |
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BITE-SIZED COOKIES FOR THE ROAD 🍪 |
Mastercard and Mercuryo have teamed up to launch a non-custodial crypto debit card called Spend. The card allows users to spend crypto directly from their wallets, avoiding intermediaries and integrating with Apple Pay and Google Pay. - DL News |
Ether.Fi is launching a Visa card that lets users spend fiat while borrowing against their crypto. The card offers 3% cashback on all purchases and operates on Scroll's Layer 2 network to reduce transaction costs. |
The Friend.Tech team has renounced control of their smart contracts, locking the system and preventing future updates. After initial success, the platform's growth stalled, and the team transferred control to a null address. |
Tether has invested $100 million in Adecoagro, acquiring a 9.8% stake in the Latin American agricultural company. This marks Tether's first venture outside crypto, aiming for long-term returns in agriculture amid rising stablecoin competition. |
Join forces with the Milk Man! We're looking for a Twitter Specialist + Content Creator who can mix crypto knowledge with top-notch tweets. Think you're the one? Apply today and let's get this show on the road! |
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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. |
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