The Wolf Den #473 - A Lesson For Bag Holders
Bitcoin Thoughts And Analysis
In a surprise move that shocked absolutely no one, the price of Bitcoin started to drop the moment that the Bitcoin Conference in Miami began. This may be coincidence, but seemingly happens every year. At Art Basel in December, I was at a night club with executive from almost every exchange when price dropped from 53K to 42K, and last June was notoriously rough. Even the El Salvador announcement failed to move price up.
Speaking of announcements, Jack Mallers will be making one today, with speculation that involves Apple. Apparently he is also making another huge announcement tomorrow. I was speaking with Alex Mashinsky from Celsius yesterday in passing, and he said that Celsius has an even bigger announcement than El Salvador.... and Samson Mow told us he has the biggest announcement of all.
Going to be a fun few days, regardless of price.
I have to head tot he conference so I have no time for charts... you know the key levels. $45.5 K and $42K now...
Further, the 4-hour chart hit oversold on RSI, so watch for bullish divergence to form, my favorite indicator!
Ethereum Supply Shock? IntoTheBlock
In this report, we bring to you the latest in on-chain cryptocurrency analysis. We look at the blockchain directly and analyze balances, transactions, and the overall activity of market participants. This gives us a unique insight into the future of the market.
This section is written in conjunction with IntoTheBlock (ITB). ITB is an intelligence company that leverages machine learning and advanced statistics to extract intelligent signals tailored to crypto-assets. IntoTheBlock tackles one of the hardest problems in crypto: to provide investors with a view of a crypto asset that goes beyond price and volume data.
The Wolf Den research team uses IntoTheBlock to dig deeper and get the most important insights about the crypto market.
Ethereum Supply Shock?
There are market catalysts that could drive ETH price up very soon, analyzing from the supply side and looking at the implications of the recent upgrade.
Supply shock
IntoTheBlock’s ETH’s Supply Indicators
11 Million ETH — 8-figures of Ether are now deposited into the proof of stake contract
This represents approximately 8.3% of all ETH in circulation
The amount of ETH staked has grown by 20% in the last 90 days and 10% in the past 30 days alone
Since EIP-1559 was implemented on August 4, the Net Issuance of ETH dropped from an average of 2.78% last week, going as low as -1.9% in January
IntoTheBlock’s ETH’s Supply Indicators
Over 2.08 ETH ($6.66B+) has been burned since the implementation of EIP-1556.
We have seen several outliers that lead to this massive burn, withNFT mania being the first
There’s been an increasing amount of mainstream coverage about the Ethereum merge, particularly around how it will lead to ETH’s supply decreasing
The Bitcoin Rich List
The Bitcoin Rich List is a novel way of looking at the distribution of the coins held in all Bitcoin wallets. It gives you an idea of what percentage of the world you fall into based on how many Sats you have stacked. Let’s see how the numbers add up.
If you are reading this letter, there is a good chance that you have been around for a while and have hopefully stacked close to .1 BTC or more. Surpassing 0.1 BTC means you are definitely ahead of 75% of the world’s population that owns Bitcoin. If you own 1 Bitcoin or more, you own more than 97.6% of Bitcoin owners.
And if you happen to be an Ethereum holder over Bitcoin or any other coin, you’re probably even higher on the list because all other cryptocurrencies are younger than Bitcoin - meaning you have arrived before the masses and are “earlier.” It may be popular for the mainstream media to lead you to believe that we are no longer early, but that simply isn’t the case - Bitcoin is still only a few small steps on its path toward world domination.
If you have stacked any Bitcoin, you are doing great.
Don’t Be Clueless Come Tax Time
A recent survey commissioned by CoinTracker found that only about 25% of crypto holders are ready for tax time. Of this poll, about 40% of individuals didn't even know that selling crypto was taxable, and 48% didn't know NFTs were taxable either.
For the love of God, please realize that everything you do in crypto is taxable.
People have gone broke because they failed to realize gains into USD and were forced to sell at a loss.
It could be staking, farming, yield, NFT trading, swapping - the list goes on and on. If you pick your nose and find something in the US, it's likely taxable. Anytime your bottom line rises, you subsequently owe Uncle Sam. It’s fine to be confused by crypto tax laws - all of us are. But that's not an excuse not to pay. Pony up for a service or hire an expert - there’s no need to fall into the 75% that isn't ready.
DO YOUR TAXES!
Miami Has A Bull
To kick off the Miami Bitcoin conference, Mayor Suarez had the honor of unveiling Miami's very own bull. I was talking to my friend James Putra from TradeStation when the unveil happened, and found that my front row positioning was perfect - to start right into the bull's backside.
Jokes aside, the bull is quite literally incredible and fitting for our the 21st century. New York’s Charging Bull has nothing on Miami’s Bull.
“Welcome To The Future Of Finance.”
Sure enough, in perfect crypto fashion, the market decided to dump shortly after the bull was revealed. Gotta love crypto.
The Wolf Of All Streets Podcast Ft. Raoul Pal And Jeff Dorman
This episode of the Wolf Of All Streets podcast is different from most: after hosting a live panel on YouTube several weeks ago, I realized that the revolutionary ideas shared by Raoul Pal and Jeff Dorman should reach more people. Jeff (@jdorman81) is the CIO of Arca, an investment firm offering institutional caliber products in the digital asset space. Raoul (@RaoulGMI) is the founder and CEO of both Global Macro Investor and Real Vision. Together we cover everything from universal basic equity to total tokenization. Listen to this episode to learn about the future of the world and how crypto plays a really big role.
This episode is sponsored by: ARCULUS
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.