Asset class returns during previous years and 2023 ytd as of 1st of September
Bitcoin is still the best asset class so far this year. Source: Charlie Bilello
After rising ~$3,000 on the Grayscale news, prices just fell $1,000 in a matter on minutes
In less than a day, Bitcoin has shed nearly all the gains it made from Grayscale Investment's court victory against the United States Securities regulator. On Aug. 29, Bitcoin popped to a two-week high after a judge ruled that the Securities and Exchange Commission was “arbitrary and capricious” when it rejected Grayscale’s spot Bitcoin ETF application. However, the SEC’s Aug. 31 decision to delay seven pending spot Bitcoin ETF applications sent Bitcoin’s price downward — falling nearly 5% in the 24 hours to 12 am UTC Sep. 1. This could brutal move coud also be a sign of drying liquidity in the market. This is indeed the 4th "flash-crash" happening on bitcoin this year Source: Cointelegraph, The Kobeissi Letter
BREAKING; Elon Musk’s X (Twitter) obtains license for Bitcoin and €crypto services to store, transfer, and exchange digital assets on behalf of its users
Elon Musk has decided to make X (formerly Twitter) an “everything app” with multiple functionalities, including a payment hub processor integrated with the microblogging social network and other tools from the building ecosystem. Musk already stated that X is a “DOGE-friendly place”. Part of the work of becoming a payment hub, or a cryptocurrency-friendly place, in the United States lies in obtaining the required licenses to operate such a business legally. Elon Musk’s company has been gradually doing that in different states but mostly focused on fiat payments under the “Money Transmitter License.” In particular, this license will enable X to store, transfer, and exchange digital assets on behalf of its users. Source: Finbold, Bitcoin Archive
What's going on with Grayscale ($GBTC) and bitcoin? As summarized by James Bianco:
1) Grayscale is closed-end fund that owns Bitcoin (BTC). It currently owns the equivalent of $16 billion in BTC. 2) Because GBTC is a closed-end fund, it can and does trade at huge discounts and premiums (see the bottom panel on the chart). As of yesterday's close, GBTC traded at a 25% discount to its Net Asset Value (NAV). 3) Many years ago, Grayscale filed with the SEC to convert its closed-end fund to an ETF in order to be able to create and redeem shares. This makes it easy to keep the price and NAV at nearly the same level. Until now, this conversion never got approved (the SEC has so far denied all spot bitcoin ETF applications) 4) Today, The Court of Appeal ruled IN FAVOR of Grayscale in their lawsuit challenging the SEC's decision to deny $GBTC's conversion to an ETF. This paves the way for the first "spot" bitcoin ETF. Source: James Bianco
The secret wallet that bought $3,000,000,000 worth of Bitcoin in the last 3 months belongs to Robinhood
While the market panicked, they bought. Source: Crypto Rover
Bitcoin's correlation to the sp500 has shown signs of breaking down Lower correlation boosts BTC's diversification potential
Source: Game of trades
Here's a chart comparing bitcoin liquidations on Thursday versus the FTX collapse in November 2022.
This feels like yet another sign of the drying #liquidity markets we have seen over the last few weeks. Source: The Kobeissi Letter
After falling from $29k Wednesday evening to $27.5k yesterday, #bitcoin crashed $2,000 in just 10 minutes overnight to hit a low of $25,314 on a massive order dump which quickly took out all stops
While it's not clear what the immediate catalyst is, the crash coincides with reports that Elon Musk's SpaceX has sold out all the BTC it previously acquired ($373 million).Others have pointed to China’s Evergrande Group filing for Chapter 11 bankruptcy in New York. The fall has taken Bitcoin's market cap below $500 billion for the first time since June 16 and hit lows not seen since June 20. Source: cointelegraph, zerohedge
