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In This Issue:
What If We All Saved?
Bitcoin Thoughts And Analysis
Altcoin Charts
Legacy Markets
Will Twitter Become The Everything App?
Circle Continues To Innovate
The Aptos Account Was Hacked
Binance Continues To Struggle
What If We All Saved?
Humans invest for various reasons, with the main objective being to generate returns for a more prosperous future. While the reasons 'why' to invest are pretty clear, the 'how' is a topic of intense debate among economists, financial advisors, and online experts.
A notion I often encounter is the idea that if everyone were to save more and focus solely on investing, society would crumble. The argument goes that since our economy is consumer-driven, without consumption, it would cease to exist.
I disagree.
While media often emphasizes the crucial role consumers play in our economy, highlighting the importance and influence of GDP reports in the finance world, I believe savers and investors hold the real power. Let me elaborate.
Consumers, no doubt, are integral to society, but they aren't everything. When a saver opts to invest rather than consume, they contribute a small advancement to society. For instance, when a saver purchases stocks instead of sunglasses, the funds go directly to a business, enabling it to foster new ideas, technologies, and innovations, eventually leading to the production of even better sunglasses.
Contrary to popular belief, society wouldn't collapse if everyone turned into an investor—instead, it would thrive!
Consider a farmer in a remote village who gathers coconuts for sustenance and barter. Usually, he gathers a small lot of coconuts daily, half of which he consumes and the rest he trades for supplies. One day, he decides to save coconuts until he can exchange them for something that can enhance his daily harvest.
The coconut trade in the village may slow down for a while, but after some weeks of saving, a large batch of coconuts is exchanged for a set of plastic bins. The farmer believes these bins can help coconuts grow faster than trees. His plan works, and his daily supply increases significantly. Despite a temporary dip in the village's GDP, our coconut farmer has successfully invested in his village's future.
The takeaway here is that saving and secure investing should be encouraged. Consumption will naturally follow its course, and society will adapt. This principle applies even to Bitcoin. Critics often unjustly argue that Bitcoin is merely bought to be sold at a higher price, and it isn't spent enough – this is untrue. I'd even say that investors transitioning value from fiat to Bitcoin and other cryptocurrencies are offering an enormous service to society. We can discuss this further another day.
Governments often fear that transitioning to Bitcoin would be challenging, but like water, Bitcoin naturally continues to flow and spread. Bitcoin works because it doesn't erode the wealth of savers and investors as the fiat system does. Bitcoin is the solution for a brighter future, which is why Larry Fink believes in it.
I mentioned Larry Fink's commentary yesterday in the news section, but given its profound implications, I want to end the week by reiterating his thoughts. It is honorable to be an investor and saver, and the risk involved opens the door for consumption rewards. Never think it is wrong to invest, as it is the most promising route to a better tomorrow.
“I do believe the role of crypto is digitalizing gold in many ways. Instead of investing in gold as a hedge against inflation, a hedge against the onerous problems of any one country, or the devaluation of your currency, let’s be clear, Bitcoin is an international asset. It is not based on any one currency, it can represent an asset that people can play as an alternative. The foundation of BlackRock is about hope. You invest for retirement because you believe tomorrow is better than today.”
Bitcoin Thoughts And Analysis
This move has stalled. For the third week (two days left in this candle, so not confirmed), we can see price being rejected at $31,000, with a wick above that level.
BlackRock news took price from $25,000 to $31,000. That was a significant push. Is it enough to keep price rising? We will see, but the chart appears to want to consolidate and chop around between $31,000 and $28,600 or so.
Yesterday morning there was potential hidden bullish divergence with RSI. The day proved why we wait for the close of the period! Price dropped throughout the day and ended up making a lower low, with RSI doing the same. That means the bearish divergence is still active, so I would expect some further retracement.
I am again watching $28,600 or so. I do not think we go back to $25,212.
Legacy Markets
Stocks decreased globally as investors awaited more US job data to assess if further Federal Reserve rate hikes are likely. European shares fell for a third consecutive day, and US equity futures indicated additional losses. Meanwhile, Asian stocks also decreased for the third day.
Shares of Just Eat Takeaway.com NV and UK housebuilders like Persimmon Plc dropped due to bearish market sentiments and falling house prices, respectively. In contrast, Thyssenkrupp AG’s hydrogen unit, Nucera, began trading in Frankfurt on a positive note.
ADP data indicating increased job addition in the US in June led to increased bets on more rate hikes. The key nonfarm payrolls and unemployment reports due on Friday will influence these expectations further.
Swap contracts now almost entirely predict a quarter-point interest-rate hike by July 26 and possibly another adjustment by year-end, highlighting global anticipation for tighter monetary policies amidst inflationary concerns.
In Asia, shares of Alibaba Group Holding Ltd. rose following news that Chinese authorities would soon end their investigation into Ant Group Co. Investors are also keeping an eye on potential stimulus measures by the Chinese government to boost economic recovery.
Key Events This Week:
US unemployment rate, nonfarm payrolls, Friday
ECB’s Christine Lagarde addresses an event in France, Friday
Some of the main moves in markets today:
Stocks
The Stoxx Europe 600 fell 0.4% as of 8:46 a.m. London time
S&P 500 futures fell 0.2%
Nasdaq 100 futures fell 0.3%
Futures on the Dow Jones Industrial Average fell 0.2%
The MSCI Asia Pacific Index fell 0.8%
The MSCI Emerging Markets Index fell 0.7%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.0883
The Japanese yen rose 0.6% to 143.24 per dollar
The offshore yuan was little changed at 7.2539 per dollar
The British pound was unchanged at $1.2740
Cryptocurrencies
Bitcoin fell 0.7% to $30,099.5
Ether fell 1.3% to $1,858.57
Bonds
The yield on 10-year Treasuries was little changed at 4.03%
Germany’s 10-year yield was little changed at 2.63%
Britain’s 10-year yield was little changed at 4.65%
Commodities
Brent crude rose 0.7% to $77.03 a barrel
Spot gold rose 0.2% to $1,914.68 an ounce
Will Twitter Become The Everything App?
Elon Musk has made it clear that his acquisition of Twitter wasn't merely to possess it. Instead, he intends to transform the platform into an "Everything App," which he plans to rename "X." Like all of Elon's ventures, this too has attracted a significant amount of criticism. However, Elon continues to work relentlessly towards fulfilling his promise. Notably, New Hampshire, Michigan, and Missouri have now granted Twitter money transmitter licenses, which certainly adds fuel to the competitive fire, especially given that Meta, Twitter's primary competitor, recently launched Threads.
Below, I have included a statement that explains the significance of these licenses for Twitter. However, it's important to point out that it is still unclear whether this implies Twitter's move towards incorporating cryptocurrency. That decision remains to be determined.
“Money transmitter license requirements and the privileges they grant differ from state to state, but they generally allow a company to send, receive, and transfer funds for and among customers, both nationally and internationally. They also permit currency exchange—swapping foreign currencies for U.S. dollars, for example, and issuing prepaid cards.”
Circle Continues To Innovate
Not so long ago, I was discussing the neck-and-neck race between Circle and Tether in terms of market capitalization, with either having the potential to emerge as the dominant stablecoin. While Circle continues to innovate—which is the focus of this segment—it's now apparent that Tether has taken the lead, boasting a market capitalization thrice that of Circle.
That being said, this segment focuses on Circle's latest initiative—launching its wallet-as-a-service developer platform, which is now live and ready for use. Through this platform, developers can create web3 applications centered around "NFTs, cryptocurrencies, and other web3 digital assets." While wallets might not seem exciting, they are absolutely essential for introducing the world to crypto, hence their importance cannot be understated.
The Aptos Account Was Hacked
It's imperative that you never rush to click on a link promising surprise rewards, particularly in the crypto space. Recently, the Aptos Twitter account fell victim to a hack, and it's uncertain what those who clicked on the shared links from the compromised account were exposed to. If a proposition sounds too good to be true—like an unexpected airdrop—it likely is, especially in the world of cryptocurrency.
Binance Continues To Struggle
As the crypto market continues to advance, Binance is battling through a significant crisis. The future remains unpredictable, so it's advisable to move your funds from exchanges today and store them in a cold wallet for self-custody. Although a few executives departing Binance doesn't spell the end for the company, a continuous stream of negative news can lead to significant repercussions. Don't become a casualty—take the appropriate actions to safeguard your assets.
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.