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In This Issue:
Bitcoin Saves Lives
Bitcoin Thoughts And Analysis
Legacy Markets
Twitter Moves Forward On Payments
Bitcoin Is Ranked #1
Brazil Is Becoming A Beacon Of Adoption
Premier League Goes Crypto
Bitcoin Saves Lives
On Thursday, February 24th, 2022, the world was witness to a defining moment in modern history as Russia launched an invasion of Ukraine. This conflict between the two nations had been simmering for several years, but escalated rapidly with a new wave of missile strikes and ground assaults that captured global attention. The invasion would change the lives of 39 million people forever.
Amidst the chaos and destruction, one young man's story stands out, showcasing the resilience and ingenuity of the human spirit. This is the story of Fadey, a 20-year-old Ukrainian refugee.
Fadey awoke to the sounds of alarm bells ringing and messages pouring into his Telegram account. He immediately knew that he needed to escape across the border, but with ATMs unreliable and running out of cash, he feared losing everything he had ever worked for. The entire country's economy was shut down, and within 24 to 48 hours, nearly everything was frozen.
But Fadey was not one to give up easily. He quickly made a peer-to-peer transaction using Bitcoin to buy Polish currency, safeguarding the remainder of his life savings in crypto on a flash drive. With banks frozen and border crossings dangerous, Fadey's crypto assets proved essential. Two hours after crossing the border, the country announced that every able-bodied man would be conscripted to fight, and financial activity has remained hindered to this day.
Crypto has become a lifesaver for refugees like Fadey, allowing them to access their assets despite the limitations imposed by traditional banking systems. Critics often overlook the practical applications of crypto's transferability, peer-to-peer functionality, decentralization, and portability. However, it is precisely these properties that make it a valuable tool in times of crisis. The inability of refugees to access their bank accounts once they leave their home country has been a persistent issue, and crypto provides a solution to this problem.
The story of Fadey is a testament to the transformative power of cryptocurrency and the importance of spreading awareness of its potential. It is the story of our generation, one of financial freedom and the protection of life. It is a reminder that even in the darkest of times, human beings are capable of finding solutions and adapting to overcome adversity.
Fadey's story is a powerful example of the potential of crypto to change lives and make a real difference in the world. As adoption continues to grow and more stories like Fadey's are shared, it is our hope that crypto will become a symbol of hope and a catalyst for positive change. The future is bright, and crypto is the story of our generation.
Bitcoin Thoughts And Analysis
Yesterday’s candle was bearish engulfing, which usually means that the local top is in. That said, it has to be followed by another bearish candle for confirmation, which we do not have yet.
RSI has finally come out of overbought and is showing potential hidden bullish divergence. For that to happens we would need to see a higher close today than the current price, giving RSI a clear “elbow up.”
I continue to look for a larger pull back before heading up further.
Legacy Markets
European stocks slipped and US equity futures fluctuated as investors weighed mixed corporate earnings and economic data while preparing for rate increases from the Federal Reserve and European Central Bank this week. The Stoxx Europe 600 index dropped after data suggested the euro area will avoid a recession after expanding unexpectedly at the end of 2022, prompting bets on monetary tightening by the ECB. S&P 500 and Nasdaq 100 futures also turned lower after a down day on Wall Street that saw the Nasdaq have its worst day since December 22, due to declines from Apple and Microsoft. Treasury yields dipped and the dollar gained. Signs of earnings pressure are making it harder for investors hopeful of a moderation in the Fed's policy tightening as inflation slows. The Fed is widely expected to raise rates by a quarter percentage point on Wednesday.
Key events this week:
US Conference Board consumer confidence, Tuesday
Eurozone Manufacturing PMI, CPI, unemployment, Wednesday
US construction spending, ISM Manufacturing, light vehicle sales, Wednesday
FOMC rate decision, Fed Chair Jerome Powell press conference, Wednesday
Earnings Wednesday include: Meta Platforms and Peloton Interactive
Eurozone ECB rate decision, President Christine Lagarde press conference, Thursday
UK BOE rate decision, Thursday
US factory orders, initial jobless claims, US durable goods, Thursday
Earnings Thursday include: Alphabet, Apple, Amazon, Qualcomm and Deutsche Bank and Santander
Eurozone S&P Global Eurozone Services PMI, PPI, Friday
US unemployment, nonfarm payrolls, Friday
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.8% as of 10:13 a.m. London time
S&P 500 futures fell 0.4%
Nasdaq 100 futures fell 0.5%
Futures on the Dow Jones Industrial Average fell 0.3%
The MSCI Asia Pacific Index fell 1.1%
The MSCI Emerging Markets Index fell 1.4%
Currencies
The Bloomberg Dollar Spot Index rose 0.2%
The euro fell 0.2% to $1.0829
The Japanese yen was little changed at 130.34 per dollar
The offshore yuan was little changed at 6.7626 per dollar
The British pound fell 0.2% to $1.2323
Cryptocurrencies
Bitcoin rose 0.5% to $22,859.24
Ether rose 0.8% to $1,569.46
Bonds
The yield on 10-year Treasuries declined one basis point to 3.53%
Germany’s 10-year yield declined two basis points to 2.29%
Britain’s 10-year yield declined two basis points to 3.32%
Commodities
Brent crude fell 1.4% to $83.74 a barrel
Spot gold fell 1% to $1,904.45 an ounce
Twitter Moves Forward On Payments
Twitter has embarked on an ambitious endeavor to diversify its revenue streams. As reported by the Financial Times, the social media giant is pursuing regulatory licenses across the United States and developing software to introduce new payment methods on the platform. This move comes in response to the decline in revenue due to the recent war on advertisers, and serves as a crucial step in restoring trust in the platform.
Since acquiring Twitter, Elon Musk has expressed a vision to enhance the platform's fintech services and offer a wide range of options, including peer-to-peer transactions, savings accounts, and debit cards. This forms part of a larger plan to launch an "everything app" that integrates messaging, payments, and commerce.
Musk's vision goes beyond just improving payments on the platform. He seeks to fundamentally transform the Twitter experience for users and creators in a disruptive manner. When asked about his immediate plans, Musk stated that he aims for the system to be fiat-based first and foremost, with the potential for crypto functionality to be added at a later stage. The goal is to provide users with a comprehensive, innovative and cutting-edge platform that addresses their various needs.
Bitcoin Is Ranked #1
"Bitcoin's Impressive 2023 Performance Catches the Attention of Institutions" - Goldman Sachs and Bloomberg are among the prominent entities that have taken note of Bitcoin's exceptional performance this year. Goldman Sachs has placed Bitcoin at the top of the list for the best-performing assets in both "Total Return" and "Risk-Adjusted Return" categories. In December, Goldman Sachs had proclaimed that "gold is a better portfolio diversifier" due to its immunity to financial conditions. This recent recognition of Bitcoin as a formidable investment option speaks to its impressive returns.
Additionally, Bloomberg has reported that Valkyrie's Nasdaq-listed ETF, WGMI, has been one of the best-performing funds of the year with an impressive increase of 105% in January. This fund tracks the performance of major crypto mining companies and has been a standout in its class. The remarkable performance of Bitcoin has played a significant role in the success of mining stocks, particularly after they had taken a hit in the market. These recent developments are a testament to the potential and growth of Bitcoin as a valuable asset in the world of finance.
Brazil Is Becoming A Beacon Of Adoption
Binance and Mastercard are joining forces in Brazil to launch a prepaid card that facilitates crypto purchases. This marks the latest endeavor of the two companies, following their similar partnership in Argentina last year.
According to Chainalysis, Latin America stands as the 7th largest crypto market globally, recording $562 billion in crypto transactions in the past year. With high inflation rates in Brazil and Argentina, these partnerships offer citizens a viable alternative to consider in their financial endeavors.
This collaboration between traditional finance and cryptocurrency reflects a deepening trend in the industry, contrary to the Biden Administration's misinformed warnings.
Premier League Goes Crypto
Sorare has partnered with the English Premier League for four years, allowing it to mint and sell digital player cards on the Ethereum blockchain. Sorare makes an upfront payment to the league for licensing rights and a percentage of sales goes to the Premier League. Sorare has used the ERC-721 token standard for NFT player cards, which fans can collect, trade, and use in its free-to-play fantasy sports league. The Premier League digital cards will initially be available on Sorare and later on compatible NFT marketplaces. Sorare aims to connect fans, players, and organizations with blockchain technology.
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.