Stormrake - Insights #FET

The Rake Review: January

Fri, 31 Jan 2025 17:31:20 +1100

January Sets the Stage for a Bullish 2025

An event-packed January comes to an end, and Bitcoin is set to close positive once more, up 11%. This month saw Bitcoin trade back under $90K for the first time since mid-November, new all-time highs, and price catalyst events that seemed to emerge every few days. From bearish events such as the US DOJ's clearance to sell seized assets, the lack of any mention of crypto in Trump’s inauguration speech, and DeepSeek AI posing a threat to US AI stocks, to bullish catalysts like a dovish tone from Powell and a pro-crypto executive order, the market experienced a constant push and pull.

From Doubt to Dominance

In the early days of Bitcoin, many traditional financial leaders and government officials viewed it with scepticism and even hostility. For instance, in 2019, former President Donald Trump stated, "I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air." Meanwhile, BlackRock CEO Larry Fink had once dismissed Bitcoin as an "index of money laundering." The mainstream narrative painted Bitcoin as a tool for criminals, a speculative bubble, or, at best, a niche asset for tech enthusiasts.

Yet, Bitcoin persisted. During 80% drawdowns, it faced relentless criticism: media headlines called it a scam, governments threatened regulation, and financial institutions openly mocked its supporters. Over the last five years, Bitcoin experienced immense volatility—falling below $4,000 in 2020, then $10,000, $20,000, $30,000, and $40,000, eventually creating new highs. Each price collapse was met with critics celebrating Bitcoin's 'downfall', yet every drawdown offered a historic opportunity to accumulate Bitcoin.

The individuals who bought during these crashes—who held extreme conviction in Bitcoin’s long-term vision—understood that mainstream adoption was inevitable. They weren’t swayed by FUD (fear, uncertainty, and doubt); instead, they recognised Bitcoin’s value proposition and its potential to be integrated into the global financial system.

Fast forward to January 2024, and the landscape had dramatically shifted. Bitcoin was trading around $40,000, and the launch of the first Bitcoin ETFs marked a historic moment where traditional finance finally embraced digital assets. BlackRock, once sceptical, now led the charge with its Bitcoin ETF, alongside other Wall Street giants.

By January 2025, Bitcoin’s ascent continued, surpassing $100,000 and proving that those who bet against it had once again been wrong. This time, the adoption wave wasn’t limited to asset managers—the U.S. government itself had stepped in. In a groundbreaking move, President Trump signed an executive order supporting Bitcoin and pro-crypto policies, marking the first official embrace of Bitcoin at the highest level of government. The man who once dismissed Bitcoin as "thin air" was now positioning himself as "The Crypto President." Over the past year, he has repeatedly praised Bitcoin and crypto, emphasising the importance of "financial freedom" and a "pro-Bitcoin stance" for America's economic future.

This transformation—from rejection to adoption—has solidified Bitcoin's role as a legitimate global asset. The past two Januaries have validated everything Bitcoin believers had envisioned: first, institutional adoption through ETFs, and now, the governmental embrace of Bitcoin as an economic force. Those who doubted Bitcoin during the bear markets, waiting for it to "go to zero," have been proven wrong time and time again.

As we stand in January 2025, Bitcoin’s journey is far from over. If history has taught us anything, it’s that Bitcoin doesn’t just survive—it thrives. And those who understand its long-term trajectory will continue to benefit from the opportunities it presents.

A Busy Yet Consolidative January

Source:: https://www.tradingview.com/x/YOnYYGEJ/

January 2025 seemed relatively slow in terms of price action, with Bitcoin hovering around $100,000 despite its intra-month highs and lows. However, this apparent calm belied a storm of events shaping the crypto market.

From Bitcoin’s 16th birthday to U.S. government drama, inflation data, and Chinese AI developments, the month was anything but quiet. Bitcoin started January strong, with seven consecutive days of bullish price action before bearish news hit the markets.

Just over a week before President Trump’s inauguration, the U.S. Department of Justice announced plans to sell 69,000 Bitcoin it had seized. This move shocked many, particularly as Trump had previously vowed not to sell seized Bitcoin during his presidency. The timing, just days before his inauguration, felt deliberate.

This bearish revelation, combined with disappointing employment data, pushed Bitcoin lower. However, the release of bullish CPI data for risk-on assets saw Bitcoin rally back above $100,000. Days before Trump’s inauguration, Bitcoin remained steady, but the inauguration speech itself brought the anticipated volatility. After dropping briefly below $100,000 due to no mention of Bitcoin in the speech, it quickly rallied to new all-time highs near $110,000.

The post-inauguration week was packed with crypto-related government developments, including:

The resignation of Gary Gensler.
The creation of a Crypto Task Force within the SEC.
A pro-crypto executive order to establish a national digital asset stockpile.

Bitcoin consolidated between $100,000 and $109,900 until another significant event disrupted the markets: the launch of DeepSeek AI, a Chinese-developed open-source AI protocol seen as a competitor to ChatGPT. The announcement sent ripples through global markets, especially tech-heavy sectors. The NASDAQ opened 1.2% lower due to the dominance of AI-related stocks, with NVIDIA recording a $600 billion single-day market cap wipeout—the largest in history.

Crypto wasn’t immune to this shock, with Bitcoin briefly falling 5% to dip below $100,000. However, Bitcoin and altcoins rebounded strongly. Bitcoin reclaimed $104,000, while projects like Sui, Ripple, and Ondo recovered their losses and rallied to new highs.

The final event of the month was the heavily anticipated FOMC interest rate decision. Although a rate cut was deemed highly unlikely, the market still reacted negatively to the announcement of no cut. However, a dovish tone from Federal Reserve Chairman Jerome Powell provided relief, sending Bitcoin from $101,000 to $105,000.

Looking ahead, February has historically been one of Bitcoin’s most bullish months, with an average return of 16.6%. If this trend continues, Bitcoin could end February at approximately $122,500. Of course, past performance is not indicative of future results.

In the News:

Stormrake Client Portal:

We are thrilled to announce the Stormrake Client Portal. Here’s what’s waiting for you:

A secure, intuitive way to view your crypto assets.
Real-time insights into your portfolio.
A foundation for even greater features coming soon.

In the coming days, Stormrake clients will receive an email inviting them to the new Stormrake Client Portal.

Czech Republic BTC Accumulation:

Czech National Bank Governor Aleš Michl has proposed allocating 5% of the 140 million euros within the central bank’s reserves to Bitcoin, which could make the CNB the first Western central bank to officially buy and hold Bitcoin.

Ross Ulbricht Pardoned:

During his campaign, President Trump pledged to pardon Silk Road creator Ross Ulbricht, a move widely supported by the crypto community. On his first day in office, he delivered on that promise, securing Ulbricht’s release.

Market Update

Here is the fast five of what you need to know about the market in January 2025:

Bitcoin ends January up 11%.
XRP becomes the third-largest cryptocurrency by market cap.
Solana drops to 5th place.
DOGE flips USDC to take 7th place.
TRUMP token storms into the top 35 within 48 hours of launch.

Video of the month

The Pro-Crypto Executive Order Explained

Education: Bitcoin’s Rising Dominance: The Great Coin Dilution Effect

Over the past few years, the cryptocurrency market has witnessed an explosion of new tokens. Thousands of projects launch daily, and millions of new coins enter circulation. Despite this relentless expansion, Bitcoin’s price has not only increased but dominance has strengthened.

The Numbers Tell the Story

Bitcoin dominance (BTC’s share of the total crypto market value) has risen from 40% to 59% in three years.
Ethereum (ETH), once holding 18% of total market capitalisation, has slipped to 10%.
All other coins combined have fallen from 42% to 30%.

The Rise of Disposable Coins

98% of memecoins fail to survive longer than three months.
10,417 tokens are launched daily, yet 9,912 become defunct.
The average lifespan of a memecoin is just 12 days.
15% of memecoins die within one day of launch.

Source: https://chainplay.gg/blog/lifespan-pump-fun-memecoins-analysis/

This rapid churn dilutes the altcoin market, siphons investor capital into speculative plays, and undermines long-term confidence in the sector.

Altcoin Dilution: The Flood vs. the Foundation

While Bitcoin operates on a strict fixed supply of 21 million, the altcoin market is inundated with tokens, many of which are inflationary or poorly structured. This has two major effects:

Capital Dilution – With every new token, available liquidity fragments further, reducing the ability of altcoins to sustain long-term value.
Market Confidence Erosion – As most altcoins fail, capital rotates into Bitcoin, reinforcing its position as a safe haven.

Decoupling of Bitcoin and Altcoin Market Caps

Historically, Bitcoin and the broader altcoin market have moved in tandem. During bull markets, altcoins often outperformed Bitcoin, acting as leverage on BTC’s price action. Conversely, during bear markets, altcoins experienced sharper declines, with their lack of liquidity amplifying losses

However, the chart above points to a clear decoupling trend.

Bitcoin is increasingly diverging from the broader crypto market. Historically, speculative "alt seasons" drove temporary outperformance by altcoins, but this dynamic appears to be fading. As the latest market trends indicate, Bitcoin is beginning to leave the rest of the crypto market behind.

Key Observations:

Bitcoin’s Rising Market Cap

Since 2022, Bitcoin’s market cap has consistently trended upwards, reflecting growing demand from institutional investors, sovereign wealth funds, and individuals seeking a secure, scarce digital asset.
Altcoin Market Cap Stagnation

In contrast, altcoins have struggled with choppy price action, as continuous dilution from speculative token launches undermines growth and fragments liquidity.
The End of "Alt Seasons"

The previous trend of altcoins outperforming Bitcoin during speculative phases is fading, reinforcing Bitcoin’s dominance and decoupling from the broader market.

What This Means

This decoupling reflects a broader shift in investor sentiment. Bitcoin’s scarcity, unrivalled security, and growing institutional adoption make it increasingly differentiated. Meanwhile, the altcoin market struggles with rampant speculation, daily dilution, and high failure rates.

The Takeaway: Buy and Hold Bitcoin

Despite millions of new tokens flooding the market, Bitcoin’s dominance is rising—a testament to its resilience and appeal. In a world awash with disposable tokens, Bitcoin’s stability and scarcity make it the clear standout

Written by Alexandar Artis

Memes of the month

Start Your Brokerage Account

Get Started

If you enjoyed this Rake Review, feel free to open an account and gain access to more proprietary research and work with your very own dedicated crypto broker.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.

Disclaimer

All statements made in this newsletter are made in good faith and we believe they are accurate and reliable. Stormrake does not give any warranty as to the accuracy, reliability or completeness of information that is contained here, except insofar as any liability under statute cannot be excluded. Stormrake, its directors, employees and their representatives do not accept any liability for any error or omission in this newsletter or for any resulting loss or damage suffered by the recipient or any other person. Unless otherwise specified, copyright of information provided in this newsletter is owned by Stormrake. You may not alter or modify this information in any way, including the removal of this copyright notice.

Copyright © 2022 Stormrake Pty Ltd, All rights reserved

The Rake Review: December

Fri, 20 Dec 2024 17:55:40 +1100

A Year in Review

Our Christmas gift to you, an early Rake Review as well as a Christmas promotion. Read more to find out...

An Incredibly Volatile Month

December has been an exceptionally volatile month, featuring two major liquidation events, four new all-time highs, and an interest rate cut followed by a press conference from Jerome Powell that rattled global markets. But most importantly, Bitcoin hit $100,000 USD.

With less than three weeks of the month gone, the hope is that the Christmas period will stabilise the market and set Bitcoin up for another rally.

The month began with significant turbulence. December 5, the day Bitcoin hit $100k was also the same day Bitcoin experienced one of the largest liquidation events in recent history, plunging from a high of $104,000 to a low of $90,500—a 15% range in a single day. This resulted in $1.1 billion in leveraged positions being liquidated, marking the largest day for liquidations since August. The chaos escalated further on December 9th, with another liquidation event surpassing the first. Bitcoin corrected sharply from $101,200 to $94,100, wiping out $1.7 billion in leveraged positions in a single day. To put this in perspective, this liquidation volume exceeded that of the FTX collapse in late 2022.

Despite these setbacks, Bitcoin rebounded strongly. Finding support at the 25-day exponential moving average, it surged to new all-time highs for three consecutive days. The bullish momentum was a relief for Bitcoin investors, as the asset once again outperformed the broader market. Bitcoin dominance climbed, while many altcoins struggled to keep up. Notable exceptions included Ondo and Sui, which also set new highs. With an interest rate cut on the horizon and the historical "Santa Claus Rally" adding seasonal optimism, conditions appeared favorable for Bitcoin.

However, Jerome Powell’s post-rate-cut press conference shifted the tone. While the Federal Reserve delivered the anticipated interest rate cut, Powell’s remarks struck a hawkish note. Key takeaways included:

Persistent inflation remains a concern.
Projections for five interest rate cuts in 2025 were revised down to two.
The Fed plans to adopt a cautious approach to future cuts.
Uncertainty surrounds Trump’s upcoming policies.
The Federal Reserve reaffirmed its policy prohibiting Bitcoin holdings, with no plans to change this stance.

The market’s reaction was swift and severe:

The US dollar surged to a two-year high.
US stock markets shed $1.5 trillion in value.
Gold and silver dropped 2% and 5%, respectively.
Bitcoin fell over 4%, briefly dipping below $100,000.
Most altcoins suffered declines of over 10%.

All this unfolded within the first three weeks of December, leaving plenty of room for additional surprises in the remaining days. Historically, the Christmas period has been bullish for Bitcoin, and we remain optimistic about a positive close to the year.

As always, our long-term bullish outlook on Bitcoin is unwavering. Corrections should be viewed as opportunities to buy the dip, accumulate Bitcoin, and invest in high-potential altcoins at discounted prices. This strategy has consistently proven to be a formula for success.

What’s Next for Bitcoin in January?

January 2025 is shaping up to be a pivotal month for global markets, with events that could set the tone for the next four years. Most notably, Donald Trump’s inauguration on January 20th is expected to have a significant impact, particularly on Bitcoin.

The anticipated implementation of the Strategic Bitcoin Reserve shortly after the inauguration is likely to drive unprecedented demand from the US Government. This move could trigger a domino effect, as other nations may act preemptively by purchasing Bitcoin for their own reserves. Currently, many countries already hold Bitcoin:

El Salvador has been actively buying.
China and the UK have acquired Bitcoin through seizures.
Countries such as Bhutan, Saudi Arabia, UAE, and Qatar are mining or rumored to be accumulating Bitcoin.

There is increasing speculation that sovereign Bitcoin purchases by Middle Eastern nations could intensify. Once the US government begins its acquisitions, other major countries are likely to follow, potentially igniting a global race to lead in the crypto space.

Before Trump's inauguration, FTX, the collapsed exchange, is set to begin repayments starting January 3rd. The first batch of customers will receive compensation in USDT or USDC. It is highly likely that a significant portion of these funds will stay within the crypto ecosystem, flowing into assets like Bitcoin, Ethereum, and other altcoins. This development serves as another bullish catalyst to kick off the year on a strong note.

From a market cycle perspective, January is still early in the bull run. Bitcoin remains dominant, with Bitcoin dominance flipping bullish as Ethereum and other altcoins struggle to consistently outperform. This aligns with phase one of the bull market cycle, where Bitcoin historically leads the charge.

The trajectory for January will depend heavily on how December concludes. Two scenarios stand out:

Bullish Close to December: If Bitcoin reclaims its short- and medium-term bullish structure and trades back above $100,000, further all-time highs in the $110,000–$120,000 range are likely in January.
Bearish Close to December: A deeper correction could see Bitcoin trading closer to $75,000 as we enter the new year.

Barring any black swan events or unforeseen developments in December, the long-term outlook for Bitcoin remains firmly bullish. Deeper corrections should be embraced as opportunities to strengthen Bitcoin positions and accumulate strong altcoins at discounted prices.

A Timeline of Key Events that Shaped Bitcoin

A clearer view of the chart above can be found here: https://www.tradingview.com/x/ve1vEvwc/

Opening the Year Strong at $42,200
ETF launch Jan 11 ($46.6k)

All time high March 14 ($73.8k)

Bitcoin halving April 20 ($64.4k)

8 month consolidation (Between $50-$70k)

Mt Gox Repayments, German Government and US DOJ mass selling of BTC

Early July ($53.4k low)

Trump’s speech at Bitcoin 2024 29 July ($70k)

Yen carry trade 5 August ($49k low)

Jackson Hole Symposium 26 August ($65k)

Dovish Jerome Powell saw risk on assets rally

First Trump Assassination - Trump Pump

Marked the low at $52.5k and rallied to $67k in three weeks,

October - ‘Uptober’

US Election; Trump wins, ATH arrives November

Further momentum

$100k Dec

Powell hawkish speech sub 100k

2025; Time for the Real Bull Market

2025 is shaping up to be a landmark year for Bitcoin and the broader crypto market. Based on the timing of this bull cycle, we expect the peak to occur later in the year. As highlighted earlier, we are still in the early stages of the bull market, with a blow-off top and full-scale altseason yet to unfold.

One of the most anticipated events is Trump’s inauguration in January, which is expected to initiate the Bitcoin Strategic Reserve shortly thereafter. This policy will see the US Government purchase 200,000 Bitcoin using existing funds, creating an unprecedented surge in demand. Such institutional buying pressure will likely trigger a historic rally. For a detailed analysis of the Bitcoin Strategic Reserve, refer to our previous Rake Review article.

While we are deeply bullish on Bitcoin—it should be the cornerstone of any crypto portfolio—we’ve also identified several altcoins with the potential to lead the market during the altseason. Many of these have already delivered impressive returns, as covered in our daily Morning Notes and Thunder Trading articles. However, with the bull cycle still in its early phase, these coins have significant upside left. Among our favorites are SUI, ONDO, SOL, and FTM, to name a few. For the complete list, reach out to your Stormrake Broker.

A key metric we use to assess market positioning is the MVRV Z-score (Market Value to Realized Value). This indicator compares Bitcoin’s market value (black line) to its realized value (blue line), with the Z-score (orange line) highlighting standard deviations between the two. Historically, the Z-score’s green band signals market bottoms, while the red band signals tops. Currently, the Z-score remains in the lower half of the chart, far from the red band. This strongly suggests that the peak of this bull cycle is still a long way off.

Finally, it’s essential to emphasise that there is never a bad time to buy Bitcoin. Over its lifetime, Bitcoin has proven to be one of the best-performing assets, with every holder who kept their Bitcoin for four years or more always ending up in profit. A common mistake among investors is attempting to time the market and overtrading. The reality is that time in the market always beats timing the market. Instead of waiting for a dip that may never come, it’s better to accumulate Bitcoin consistently.

This advice is especially relevant as Bitcoin nears all-time highs—its price tag can be intimidating, but sitting on the sidelines often leads to missed opportunities. To delve deeper into how overtrading can lead to underperformance, check out our detailed Thunder Trading article here.

Market Update

Here is the fast five of what you need to know about the market in December 2024:

Bitcoin is currently up 0.60% from the open…
XRP reaches 4th in overall market cap after being 3rd for a brief time
Cardano jumps Lido Staked Ether to move into 9th
Solana falls from 4th to 6th largest crypto
ISO tokens continue to be the dominant category, HBAR, XRP, ALGO and XLM leading.

Video of the month

A snippet from Jerome Powell's Hawkish Speech

Bitcoin and Ethereum ETF Performance:

All throughout December the net flow of money in Bitcoin and Ethereum has remained positive for every consecutive day. This exemplifies the positive market sentiment about the new securitisation of digital products on established exchanges.

Stormrake Morning Notes and Thunder Trading Hits

One of the standout achievements of the year has been the revival of our Morning Notes and Thunder Trading articles. These research pieces have provided clients with invaluable insights into the markets, particularly crypto projects we identified as undervalued.

Clients can tailor their engagement by opting to receive just the Rake Review, Morning Notes, Thunder Trading, or a customised combination of these updates, this can be done by clicking HERE.

Morning Note (DAILY PUBLICATIONS)

Our Morning Notes are concise, 3–5-minute reads delivered to subscribers six days a week. Each note includes:

Daily Market Analysis: A snapshot of market movements and relevant events impacting short-term prices.
Stormrake Spotlight: A feature on a specific coin or project we believe to be undervalued. These picks have consistently yielded impressive returns for those who followed.
Short-Term Bitcoin and Ethereum Analysis: A technical overview of key price levels and trends to watch.

Thunder Trading (TOPICAL PUBLICATIONS)

Thunder Trading articles dive deeper, offering in-depth research on specific projects, migrations, or significant events affecting the market. Some of our most notable Thunder Trading pieces this year include:

The Yen Carry Trade and its market impact.
The Mt. Gox repayments and mass Bitcoin sell-offs by the US DOJ and German government.
The introduction of Ethereum ETFs.
Educational insights, such as overtrading and its impact on underperformance.
A project-focused deep dive on Sui, which was a major hit with clients.

The Sui article was particularly well-received. Subscribers who followed our analysis were able to purchase Sui at prices below $2. With its recent all-time high just under $5, the project continues to show potential for further rallies. For a comprehensive look at why we remain bullish on Sui, read the full article.

To explore our published Thunder Trading articles, click here, and to stay ahead of future editions, make sure to opt-in and subscribe.

Majority coins in the Stormrake Spotlight have been quite successful, below is a full list of coins that have featured in the Stormrake Spotlight and their performance since featuring.

**figures at time of writing 19/12/2024*

Since launching the Stormrake Spotlight in September, 13 coins have been featured, each delivering peak returns of at least 15% above their initial mention. Notably, eight of these coins remain comfortably in profit.

Top Performers

Five coins (FTM, SUI, GOAT, DOGE, ONDO) have achieved returns well over 100% since being featured.
Four of these still remain above 100% from their first mention.
WIF and SOL narrowly missed the 100% milestone, peaking at 97% and 92%, respectively.
ETH and TAO peaked at 55% and 73%, respectively, meaning nine of the 13 coins have delivered over 50% returns.

To ensure you don’t miss out on future opportunities and the exceptional returns from Stormrake Spotlight, subscribe to the Morning Notes on Substack here. SUBSCRIBE

STORMRAKE'S CHRISTMAS GIFT TO YOU

Thank You for an Incredible Year!

As the year comes to a close, we want to express our gratitude for being a valued part of our community. Your trust and support have made 2024 an amazing year, and we’re excited to help you achieve even greater milestones in the year ahead.

As a token of our thanks, we’re giving you a special end-of-year bonus:

For every AUD$10,000 worth of Bitcoin you purchase with Stormrake, we’ll gift you AUD$20 worth of Bitcoin.

It’s our way of saying thanks for choosing us as your trusted partner in crypto.

This exclusive offer is available until December 31, 2024, so don’t miss out!

Terms & Conditions

This promotion is valid from December 21, 2024 to December 31, 2024, 11:59 PM (AEST).
Bonus Bitcoin is awarded at a rate of AUD$20 for every AUD$10,000 worth of Bitcoin purchased in a single transaction.
Bonus Bitcoin will be credited to your account as part of the qualifying transaction.
Transactions canceled or refunded will not qualify for the bonus.
Standard trading fees apply.
We reserve the right to amend or withdraw this promotion at any time without prior notice.

Written by Alexandar Artis

Memes of the month

Start Your Brokerage Account

Get Started

If you enjoyed this Rake Review, feel free to open an account and gain access to more proprietary research and work with your very own dedicated crypto broker.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Disclaimer

Is XRP Emerging as the New Leader in the Crypto Space?

Tue, 03 Dec 2024 15:23:32 +1100

Ripple (XRP) has reached new heights recently, surpassing both Solana (SOL) and Tether (USDT) to claim the position of the third-largest cryptocurrency by market capitalisation.

Source: https://www.tradingview.com/x/oZpDuoPa/

XRP’s meteoric rise began alongside the broader market rally following the US election results. Trading below $0.50 at the time, XRP surged to $0.70 as market momentum gathered pace. However, XRP outperformed nearly every other cryptocurrency, leveraging this momentum to skyrocket and leave much of the market in its wake. The chart above highlights XRP's remarkable 409% rally since the election, climbing to $2.73. Comparatively, Fantom (FTM) rose 130%, Bitcoin (BTC) gained 43%, Ethereum (ETH) advanced 53%, and Solana lagged with a 25% increase over the same period.

XRP's dramatic rise was spurred by significant news: an asset manager filed with the SEC to request approval for an XRP-focused large market ETF. This announcement coincided with news of Gary Gensler stepping down as Chairman of the SEC, which added fuel to the rally. Ripple’s years of legal battles with the SEC have long held back its performance, leaving it lagging behind the broader market for nearly eight years.

This rally has been long-awaited. XRP famously failed to reach a new all-time high during the 2021 bull run, with its record high of $3.40 set back in 2018. With its recent surge, XRP has surpassed its 2021 high and now has the potential to set a new all-time high.

Persistent XRP holders over the past seven years have finally been rewarded, but now may be a prudent time to take profits. With a 400% rally in less than a month, a significant pullback is likely. Even the most bullish trends do not move in a straight line, and XRP’s parabolic rise suggests a correction is inevitable.

While new all-time highs remain possible, diversifying into other assets like Bitcoin or coins that have yet to rally, such as Fantom (FTM), could be a wise strategy. For those worried about missing out, this is an excellent opportunity to strengthen Bitcoin positions as the market remains in its early stages, presenting compelling entry points. Contact your Stormrake Crypto Broker to take advantage of these opportunities.

For those feeling underexposed or concerned about missing out, now is the time to strengthen your Bitcoin position. This market is still in its early stages, presenting long-term believers with an excellent opportunity. Contact your Stormrake Crypto Broker to make the most of this moment.

Stormrake Spotlight: Fantom ($1.25)

Fantom concludes its spotlight feature with a strong performance, trading at $1.25, up 25% this week and over 100% since its initial highlight in the Morning Note. As predicted, FTM mirrored the price action of Ondo, which was covered in the previous Spotlight. After reaching $1.10, FTM retraced to $1 before consolidating and launching again to current levels. This move has rewarded those who followed the Stormrake Spotlight closely.

For new readers, be sure to keep an eye on the coins featured in the Stormrake Spotlight, as they have delivered strong returns. These are opportunities you don’t want to miss.

BTC/USD Key Levels and Price Action:

Source: https://www.tradingview.com/x/xdWMUvS8/

Bitcoin’s bullish momentum has faded, flipping bearish after failing to set a higher high and subsequently forming a lower low. BTC now trades below all moving averages, indicating further downside risk. It may approach the CPR support level of $92,330.

BTC Total ETF Flows for 2 Dec: $ + 15.3 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/DC12TuVt/

Ethereum has also turned bearish but maintains a relatively better structure compared to Bitcoin. ETH recently set a higher high and is attempting to establish a higher low around the $3,557 support level. Overnight, ETH bounced from this level but faces resistance at the 21 EMA due to its downtrend. Breaking above the 21 EMA could see ETH target the $3,725 resistance level.

The recent bull flag pattern on ETH has nearly played out, though it fell short of its maximum target. Nevertheless, the breakout delivered notable gains.

ETH Total ETF Flows for 2 Nov: $ - 24.5 Million

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

To receive the Morning Note in your inbox. Subscribe here: https://stormrake.substack.com/

Written by Alexandar Artis

Create a brokerage account today

Get Started

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Disclaimer

Has Alt season Finally Begun?

Tue, 03 Dec 2024 15:14:09 +1100

To determine whether we are in alt season, we use a number of indicators, including Bitcoin Dominance, the Altcoin Season Index, and the traditional phases of a bull market.

Source: https://www.tradingview.com/x/PqgjpyhL/

Bitcoin dominance appears to have peaked following a tweezer top candle formation on the monthly chart. The last time such a pattern occurred was at the beginning of the 2021 alt season, which saw Bitcoin dominance decline significantly as the altcoin market rallied to new highs.

With this current tweezer top, we can anticipate Bitcoin dominance to continue its decline, paving the way for a prolonged altcoin rally. However, while this is a strong indicator, it does not confirm alt season just yet, as dominance remains relatively high. Nonetheless, I believe we have likely seen the peak in Bitcoin dominance. If history repeats itself, dominance could decline to 35-40% over the next 10 months, leading to altcoins gaining substantial ground later in this period. It’s important to note that Bitcoin dominance peaking does not mean Bitcoin’s price has peaked. In the last cycle, dominance peaked 11 months before Bitcoin's price hit its high.

Source:https://www.blockchaincenter.net/en/altcoin-season-index/

While Bitcoin dominance suggests alt season is still developing, the Altcoin Season Index indicates otherwise. The index has just crossed the critical 75 threshold, signaling that alt season is officially underway. This metric defines alt season as a period when at least 75% of the top 50 coins outperform Bitcoin. As of today, this condition has been met, marking the beginning of a significant altcoin market rally.

As discussed in our recent Morning Note articles and the November Rake Review, the crypto market is currently transitioning between phases 1 and 2 of the traditional bull market cycle. Ethereum, a key indicator, is struggling to consistently outperform Bitcoin. Until Ethereum establishes clear dominance over Bitcoin, the market remains in an early phase of the bull run.

Stormrake Spotlight: Fantom ($1.098)

Fantom has had another impressive performance in the Stormrake Spotlight, rallying 9% over the past week and consolidating around the $1 mark after a significant 40% increase the week prior. With strong technical indicators and the highly anticipated migration to Sonic this month, FTM is certainly one to watch.

BTC/USD Key Levels and Price Action:

Source: https://www.tradingview.com/x/9QLka66B/

After reaching the bull flag target, Bitcoin experienced a healthy pullback, maintaining its bullish structure. The pullback established a higher low, while the bull flag breakout created another higher high. As long as Bitcoin stays above the previous higher low of $95.7k, the probability remains high for a move to $100k, using the 21 EMA as support.

BTC Total ETF Flows for 1 Dec: $ N/A million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/9TiqFaUv/

Ethereum continues its gradual ascent toward the bull flag target of $3,820. ETH remains above the 21 EMA, using it as support, but it has faced strong resistance at $3,724, a level it has failed to breach four times in the past day. A successful breakout above this resistance could pave the way for a smooth rally to the target.

ETH Total ETF Flows for 1 Nov: $ N/A Million

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

To receive the Morning Note in your inbox. Subscribe here: https://stormrake.substack.com/

Written by Alexandar Artis

Create a brokerage account today

Get Started

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Disclaimer

The Rake Review: November

Sat, 30 Nov 2024 18:07:22 +1100

November was one for the Record Books

Bitcoin hit multiple all-time highs in November, nearing $100K, with bullish momentum setting the stage for a promising December.

Bitcoins Biggest Monthly Increase in History

November witnessed the largest dollar value increase ever for Bitcoin. At the time of writing, Bitcoin is up 37% and less than 3% away from the monumental $100,000 mark. It felt as though new all-time highs were being set every other day. November was undoubtedly a thrilling month for Bitcoin bulls, but it didn’t start that way.

Bitcoin began November at $70,000 but faced a decline leading up to the U.S. election on November 7, reaching a low of $66,800 on November 6. Market sentiment suggested that a Kamala Harris victory might lead to a further pullback, whereas a Donald Trump win was expected to boost Bitcoin in the short term. As swing states turned red, markets rallied, with Bitcoin hitting a new all-time high of $76,400 on election day. Once Trump’s victory was confirmed, the “Trump Pump” began. While bullish sentiment existed regardless of the outcome, it’s clear that the market’s reaction wouldn’t have been the same under a Harris administration.

The rally persisted for three weeks, with Bitcoin setting new highs almost daily and leaving pullback watchers behind. Bitcoin came within $400 of the $100,000 milestone. Despite many calls for corrections starting at $75,000, the largest pullback during this rally was a mere 5%.

A long-overdue pullback did occur, albeit quicker and milder than expected. Bitcoin fell approximately 9% from its high, reaching $90,800. Many anticipated a larger drop below $90,000, but proactive dip buyers were rewarded as Bitcoin rebounded, rising over 7% from the low and setting the stage for a promising December.

What’s Next for Bitcoin in December?

The recovery has re-established bullish momentum, making December a strong contender for reaching $100,000 Bitcoin. This could pave the way for further rallies to $110,000 or even $120,000 before Christmas. An anticipated interest rate cut and the traditional "Santa Claus rally" make Bitcoin’s trajectory highly promising. Remember, “time in the market beats timing the market."

Is Alt Season Upon Us?

In traditional bull market fashion, Bitcoin’s rally lifted the rest of the market, with altcoins delivering impressive returns. Several narratives shaped the altcoin space over the last three weeks:

Week 1: Memecoins dominated, with Dogecoin leading the charge, rallying nearly 300% to $0.44 after being featured in Stormrake Spotlight. This was followed by other memecoins like Pepe, WIF, SHIB, and PNUT, all hitting new all-time highs. Memecoin volumes reached levels seen only four times since 2021, often a cautionary signal as they have historically preceded Bitcoin peaks. However, this bull run is unlike any before.

Week 2: ISO coins like Ripple (XRP) and Stellar (XLM), along with dino coins like Cardano (ADA) and VeChain (VET), took the spotlight.

Week 3: Gaming tokens such as Sandbox (SAND), Decentraland (MANA), and Gala Games (GALA) led the way before Ethereum and its ecosystem took charge. Ethereum’s leadership raises questions about whether phase one of the bull market is nearing completion.

A usual crypto bull market is made up of four phases as outlined above. Bitcoin’s massive price surges over the last few months have made it undeniable that we are currently in phase one of the bull market. This has resulted in Bitcoin dominance rallying alongside its price. There are two key metrics to monitor for identifying the end of phase one: ETH/BTC and Bitcoin dominance.

Bitcoin dominance is not directly correlated with Bitcoin’s price—it can decline even as Bitcoin rallies. For instance, dominance peaked on November 21 and began to fall while Bitcoin reached a new all-time high on November 22. During the first phase, money flows into Bitcoin, increasing both price and dominance. Once dominance peaks and starts to decline, phase one is likely nearing its end. Currently, Bitcoin dominance is at 58.30%, down 5.25% from its peak of 61.53%.

The ETH/BTC performance is another crucial indicator. Phase two involves Ethereum leading the market, confirmed when Ethereum consistently outperforms Bitcoin. Presently, Ethereum and Bitcoin are alternating in outperformance, indicating an overlap between phases one and two.

Both metrics suggest we are transitioning between phases one and two. What about altseason? Altseason is the final phase of a bull market and typically lasts a few months. It occurs when Bitcoin dominance plummets below 40%. For now, we still have some distance to cover before entering altseason.

Strategic Bitcoin Reserve

As a result of Donald Trump’s victory, the promise of a Strategic Bitcoin Reserve is becoming a reality. This initiative was one of Trump’s key proposals to appeal to cryptocurrency advocates. Under Lummis’ proposed bill, the Federal Reserve and Treasury Department would acquire one million Bitcoin using existing funds. This move would position the United States as the largest nation-state holder of Bitcoin, controlling 5% of the entire network—comparable to the country’s share of the global gold supply.

The Lummis Bill (Bitcoin Act) outlines six main components. First, it establishes a Bitcoin Strategic Reserve, consisting of a decentralised network of Bitcoin storage facilities across the country. The most exciting aspect is the plan to purchase 200,000 BTC annually over the next five years. Additional provisions include proof of reserves for the holdings, voluntary state participation, cost offsetting, and the right for individuals to self-custody their Bitcoin.

Market Update

Here is the fast five of what you need to know about the market in November 2024:

Bitcoin’s largest monthly dollar value increase in history
Bitcoin ends the month up 37.7%
SOL and XRP both flip BNB to become the 4th and 5th largest cryptocurrency
Cardano returns to the top 10 forcing out Tron
Memecoins remained the hottest category, with Doge leading all memes, rallying 161%

Video of the month

Senator Cynthia Lummis unveiling the Bitcoin Strategic Reserve Bill at Bitcoin 2024

In the news

Department of Government Efficiency

The establishment of the Department of Government Efficiency (DOGE) under President-elect Donald Trump, co-led by Elon Musk and Vivek Ramaswamy, has sparked significant interest. The department's acronym, "DOGE," aligns with Dogecoin, a cryptocurrency that Musk has previously endorsed. This alignment has led to speculation that Musk's involvement could positively impact Dogecoin's value. Many in the crypto community believe that Dogecoin could reach $1 during this bull cycle, partly due to Musk's influence.

Tornado Cash Surges Over 500% Following Overturned Sanctions

The U.S. Court of Appeals for the Fifth Circuit recently ruled that the Treasury Department's Office of Foreign Assets Control (OFAC) exceeded its authority in sanctioning Tornado Cash, a cryptocurrency mixer accused of facilitating over $7 billion in illicit transactions. The court determined that Tornado Cash's immutable smart contracts do not qualify as "property" under the International Emergency Economic Powers Act (IEEPA), overturning the 2022 sanctions. This decision has been hailed as a major win for privacy advocates and the crypto industry, though it highlights the need for updated regulations to address decentralized technologies. Following the ruling, Tornado Cash's native token, TORN, surged by over 500% before stabilizing, reflecting market optimism. Despite the legal victory, challenges remain for its developers, with ongoing cases related to money laundering and sanctions violations.

Bitcoin and Ethereum ETF Performance:

November shattered records with $6.2 billion in Bitcoin ETF inflows, including a single-day record of $1.38 billion post-election. ETF holdings are nearing one million BTC, and analysts predict they’ll surpass Satoshi’s holdings by year-end. Ethereum also saw its first instance of higher ETF inflows than Bitcoin over a four-day period (22-27 Nov).

Education

The upcoming Fantom to Sonic Migration

In the 2021 bull run, Fantom emerged as one of the leading cryptocurrencies, driven by the “DeFi Summer” narrative that was dominating the crypto space. During this period, Fantom became a hub for decentralized finance (DeFi), propelling its native token, $FTM, from a modest $0.02 on January 1 to an all-time high of $3.46 by late October 2021. This remarkable rally elevated FTM to the 28th largest cryptocurrency by market capitalization. However, the subsequent bear market took a significant toll on FTM, with its value plummeting to a low of $0.169, representing a 95% drop from its peak in less than a year.

Fast forward to today, FTM trades at $1.05, reflecting one of the strongest recoveries since the lows of the bear market. It was an early pick in our Stormrake Morning Note back in September when it was priced at $0.50, and it has since doubled in value. Over the past fortnight, FTM has been one of the standout performers, surging by over 52% and outpacing most other cryptocurrencies. This resurgence is largely attributed to the highly anticipated migration Fantom is set to undergo in December.

The upcoming migration to the new Sonic network has garnered widespread attention due to its promise of enhanced performance and scalability. Sonic is poised to become a faster and more efficient Layer 1 blockchain, capable of processing up to 200 million transactions per day. Its cross-chain interoperability, particularly with Ethereum, opens the door to a new wave of decentralised applications (dApps), increased liquidity, and broader use cases. Adding to the appeal, the Fantom Foundation is supporting this transition with substantial financial incentives, including $120 million in grants to encourage project migration.

A key figure driving Fantom’s success is Andre Cronje, the renowned developer who serves as the CTO and Chair of the Fantom Foundation (now Sonic). Widely respected within the crypto industry, Cronje’s contributions have been instrumental in establishing Fantom as a leader in DeFi. His decision to make Fantom’s code open source has inspired numerous imitators, but none have matched Fantom’s prominence. Cronje’s importance was evident during the bear market when his announcement of stepping away from the crypto space led to a significant downturn for the Fantom ecosystem. However, his return eight months later brought renewed energy and optimism, as he expressed frustration with other blockchains failing to reach their potential. This comeback revitalized the Fantom community, which remains one of the most dedicated and resilient in the crypto world. As history has shown, a strong and loyal community is often a key ingredient for the sustained success of any project.

The official Sonic Labs token migration contract will facilitate the conversion of FTM to S starting in December 2024. This process allows users to swap FTM for S at a 1:1 ratio, with the added flexibility of swapping between the two tokens freely for the first 90 days. For those who custody their FTM with us, no action will be required—the conversion will be handled automatically. Users can simply sit back and enjoy the transition.

FTM/S should undoubtedly be on the radar of any serious crypto portfolio. With its continued leadership in DeFi, consistent upgrades, and the potential of a successful migration coinciding with a bullish market, it wouldn’t be surprising to see S surpass FTM’s previous all-time high and achieve even greater milestones.

November has been a month for the record books, setting the stage for a full-blown bull market in 2025. December now has the opportunity to build on November’s bullish momentum and push Bitcoin past the $100,000 milestone.

Written by Alexandar Artis

Memes of the month

Start Your Brokerage Account

Get Started

If you enjoyed this Rake Review, feel free to open an account and gain access to more proprietary research and work with your very own dedicated crypto broker.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Disclaimer

Bitcoin Flirts with $100,000 Ahead of December

Sat, 30 Nov 2024 18:06:29 +1100

Despite the public holiday in the US, Bitcoin rallied overnight during the US trading session. Bitcoin reached a high of $98,620, putting it less than 1.5% away from $100,000. It has since pulled back to current levels of $97,000, reaffirming its bullish structure. The bullish structure remains intact as long as Bitcoin stays above the last higher low of $95,600. The hope that we see $100k before November still remains, however not as strong as it was a week ago. This recent move has set Bitcoin up perfectly to hit it in early December.

We can now confidently say that the correction is over. It came and went quickly, offering excellent “buy the dip” opportunities to proactive investors, who have been rewarded for their foresight. This does not mean we will go straight up for the remainder of the bull market; there will still be corrections, which may even be of a greater degree.

Despite Bitcoin’s rally, dominance continues to fall, and altcoins are delivering mixed performance. Some, such as CORE, HBAR, ALGO, and ONDO, have outperformed Bitcoin, while major coins like ETH and SOL have underperformed in the last 24 hours. Ethereum’s lack of consistency suggests we are still transitioning between phases one and two of the market cycle. However, the altcoin season index continues to rise, now reading 67. This indicates we may be later in the bull cycle than the traditional alt season timeline suggests.

Nonetheless, price action, charts, and fundamentals all suggest we are still in the early stages of this cycle. The majority of retail investors remain on the sidelines, and the largest Bitcoin buyer—the US government—has yet to begin buying. Reflecting on 2021, many indicators and on-chain analytics prematurely called the early peak the market top. However, the crypto market went on to achieve new all-time highs in the final months of that year.

We remain bullish, maintaining the conviction that this bull run will extend into late 2025.

Stormrake Spotlight: Fantom ($1.03)

Fantom (FTM) is consolidating and building a strong foundation at $1. Similar to Ondo last week, this base is pivotal as it represents both a technical support level and a psychological threshold for investors. Ondo has since rallied to $1.17 after forming its base. If FTM successfully establishes a similar base, we can anticipate comparable price movement in the coming weeks.

BTC/USD Key Levels and Price Action:

Source: https://www.tradingview.com/x/wbfo9h7q/

We identified a bull flag pattern yesterday, which played out nearly perfectly, with the breakout reaching its target. The 21 EMA provided support throughout the rally to the high near $99,000. Since reaching the target, BTC has pulled back to trade at the 21 EMA. This level is expected to hold. However, if it fails, the 200 SMA and 55 EMA at $96,400 should provide support.

BTC Total ETF Flows for 29 Nov: $ + 42.9 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/trQDQobL/

As noted earlier, Ethereum underperformed Bitcoin over the last 24 hours. While BTC reached its bull flag target, ETH has yet to break out significantly. It had a minor initial breakout but quickly retested the top of the bull flag channel. This remains bullish, as price typically retests breakout patterns before continuing upward. ETH has found support at the 55 EMA, which is expected to hold, paving the way for another move higher.

ETH Total ETF Flows for 29 Nov: $ + 3.4 Million

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

To receive the Morning Note in your inbox. Subscribe here: https://stormrake.substack.com/

Written by Alexandar Artis

Create a brokerage account today

Get Started

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Disclaimer

The Rake Review: October 2024

Thu, 31 Oct 2024 15:46:07 +1100

October Did Not Disappoint

October lived up to its ‘Uptober’ reputation, with Bitcoin making gains and setting the stage for potential new highs.

Another successful 'Uptober'

After some early doubt and fear, October has officially been another successful month for BTC and continues to live up to its name of ‘Uptober’. In previous Octobers, Bitcoin saw an average return of 23%. At the time of writing, Bitcoin is up +14.6% since October 1 and is looking to continue higher in November.

October has been a rollercoaster to say the least, with the month opening at $63,400 before spending the first week or two struggling to make any progress to the upside and even falling below $60k briefly. Whilst things were looking bearish for the short term, our long term faith was not wavered as the long term structure we identified had remained in play. Will Uptober be the month to send Bitcoin to new all time highs or be the ignitor for November to be the month we see a new all time high.

Bitcoin Technical Analysis:

Bitcoin vs USD

A clearer view of the chart can be found here: https://www.tradingview.com/x/BsCN8quF/

In last month's Rake Review, we discussed Bitcoin’s bull flag formation, a bullish pattern that has now broken to the upside, showing promising momentum. After testing the top of the channel, Bitcoin has continued higher, reinforcing our target of $88k. The strong structure of higher highs and higher lows keeps this target within reach.

Bitcoin currently faces resistance at its previous all-time high from March. This level might prompt a pullback, but as long as BTC remains above its recent higher low at $65,250, the bullish trend persists. Minor pullbacks on shorter timeframes may offer good entry points to further allocate toward your Bitcoin positions.

Bitcoin Dominance

A clearer view of the chart can be found here: https://www.tradingview.com/x/0QAJRsAI/

The chart above compares Bitcoin dominance (yellow line), Bitcoin price (purple line), and Total 2 (the total crypto market cap excluding Bitcoin - cyan line). Bitcoin dominance represents the percentage of the overall cryptocurrency market cap made up by Bitcoin, highlighting its relative strength and influence in the market.

The chart above shows Bitcoin dominance (yellow line), Bitcoin price (purple line), and Total2 (the entire crypto market cap excluding BTC - cyan line). Currently, Bitcoin dominance is at levels not seen since April 2021 and is likely to continue rising. When dominance increases, more capital flows into BTC, leading to price appreciation. Now at 60%, Bitcoin dominance has historically reached around 67.39% in previous bull runs. Typically, dominance peaks within 12 months of BTC’s cycle high, marking the blow-off phase where both Bitcoin and altcoins rally to new all-time highs. Indications suggest that late 2025 could be the peak of the bull run.

While a drop in BTC dominance doesn’t mean a price decline, it does indicate that capital flows out of other coins while new funds enter the crypto space, lifting both BTC and altcoins. We expect Bitcoin dominance to rally to around 67% over the coming months before it peaks. When this peak occurs, the entire crypto market could reach even higher levels in 2025. In bear markets, both prices and dominance decline as capital exits the crypto space or moves into stablecoins like USDT or USDC. Prepare for the bull run by continuing to accumulate Bitcoin—contact your personal Stormrake Broker to seize this golden opportunity.

What’s Next for Bitcoin in November?

If you thought October was volatile, brace yourself for November. Bitcoin is testing its previous all-time high, with the US election just days away. Regardless of the election outcome, Bitcoin’s long-term position remains strong. Expect significant volatility in the first couple of weeks (similar to October) before Bitcoin regains stability and likely continues its climb toward our bull flag target of $88k.

Market Update

Here is the fast five of what you need to know about the market in October 2024:

Bitcoin ends October up 14% after recovering from an initial 7% dip.
TON fell out of the top 10, replaced by TRON.
Solana outperformed Ethereum with a 15% gain compared to Ethereum’s 2.4% rise.
SPX6900 entered the top 100, soaring 432% this month.
Memecoins were the hottest category, with some gaining over 50%, 100%, and even 200%.

Video of the month

How the US election may affect Bitcoin?

In the news

United States Presidential Election:

With the US election less than a week away, it’s shaping up to be one of the most pivotal in recent memory. Since Harris replaced Biden, the race has tightened, with betting odds currently leaning in Trump’s favour. Polymarket gives Trump a 66% chance of victory, while Sportsbet offers odds of $1.55. Despite these odds, polling suggests the race is still close, and many consider it a virtual toss-up.

For the crypto sector, a Trump victory is seen as favourable, with Trump proposing a US Bitcoin Strategic Reserve and even incorporating Elon Musk into his campaign—a strong crypto advocate. Harris, on the other hand, has made minimal statements about cryptocurrency, and Democrats have historically been more critical of digital assets. The prospect of a Trump win has already fueled Bitcoin’s rally as investors potentially price in his victory. If Harris wins, a market dip might follow, creating a “buy the dip” opportunity for Bitcoin before the bull run continues. Regardless of the election’s outcome, market sentiment points to a bullish trend into 2025, as fundamental support for crypto remains strong.

BRICS Members Begin Bitcoin Mining

At a recent BRICS meeting, new members UAE, Argentina, and Ethiopia revealed they have begun government-backed Bitcoin mining operations. This shift reflects BRICS countries' growing interest in digital assets to bolster economic resilience and potentially move away from Western financial systems. As the coalition grows in economic power, Bitcoin may emerge as a preferred currency for these nations, prompting further global interest in adopting Bitcoin.

Bitcoin and Ethereum ETF Performance:

October was a record month for Bitcoin and Ethereum ETFs, with the Spot Bitcoin ETF seeing $870 million in net inflows on October 29 alone—the third highest day since inception. U.S. ETFs now hold almost 1 million Bitcoin, just behind Satoshi Nakamoto's holdings. If this trend continues, ETFs could become the largest Bitcoin holders by November. Spot Bitcoin ETFs have had nearly continuous inflows since October 14, totaling $4.5 billion, while the Spot Ethereum ETF saw net inflows of $65.1 million in the same period.

Education

Stormrake's Morning Note:

For those who want to stay engaged with the crypto market, Stormrake has relaunched the Morning Note, a daily 3-4 minute read covering the previous day's trading, key events, and upcoming highlights. It also includes the “Stormrake Spotlight” to feature coins we believe have strong performance potential.

In recent spotlights, coins like Sui (35% gain), Solana (30%), Goat (80%), and Fantom (55%) have achieved significant gains. These aren’t just short-term plays; we have long-term conviction in these picks. Stay ahead by subscribing and let us handle the research, so you’re prepared for the bull run.

Subscribe to the Morning Note here: https://stormrake.substack.com/

Stormrake is heading to the Australian Crypto Convention

We’re thrilled to be sponsoring the Australian Crypto Convention in Sydney on November 23-24! As a sponsor, we’ll have a dedicated booth at the event, and we invite you all to come by, meet our team, and enjoy exclusive perks. Our directors and key members from both the trading and brokerage desks will be there, ready to connect and discuss the latest in crypto.

Our booth will feature a popcorn machine for a quick snack, and potentially a Stormrake DJ booth and an exclusive party for our clients. We’re offering discounted tickets—contact your Stormrake Broker for details or follow the link below to secure yours. We look forward to seeing you there!

GET YOUR DISCOUNTED TICKETS HERE: https://auscryptocon.com/?utm_medium=ctr&utm_source=email&utm_campaign=stormrake3

Written by Alexandar Artis

Memes of the month

Start Your Brokerage Account

Get Started

If you enjoyed this Rake Review, feel free to open an account and gain access to more proprietary research and work with your very own dedicated crypto broker.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Disclaimer

The Rake Review: September 2024

Mon, 30 Sep 2024 15:12:00 +1000

Stormrake take Token2049

September was a month where both sides of the market were in control. Bears were dominating and looking to push BTC back below $50k early in the month, before a sharp reversal from the bulls on the anticipation of the first interest rate cut in over four years.

Token2049; Bitcoin remains king, Stormrake key takeaways:

Token2049, the leading global cryptocurrency and blockchain conference that brings together industry leaders, investors, developers, and enthusiasts to discuss and shape the future of the digital asset ecosystem.

Token2049 was a showcase of the crypto industry's vibrancy, filled to the brim with new tokens, chains, infrastructure projects, and venture capitalists. Despite the influx of innovation, one sentiment was clear among attendees: there is only one Bitcoin. Bitcoin remains the king and is by far the best asset in the digital economy, outnumbering new crypto use cases in both utility and trust.

A significant trend observed at the event was the proliferation of stablecoins. Once merely handy trading pairs, stablecoins have evolved into dominant assets in their own right. They exemplify one of crypto's best use cases—seamless remittance and value transfer—highlighting the sector's growth beyond speculative trading to practical financial solutions.

The rise of memecoins and community tokens also garnered attention. This shift marks a move away from low-float, high fully diluted valuation (FDV) venture capital chains and tokens, whose traditional playbooks have been exposed. Retail investors, finding it harder to catch big wins on altcoins due to increased VC involvement, are turning to memecoins in search of significant returns.

Token2049 was heralded as one of the best-organised events in the crypto space, with every major player in attendance. The atmosphere was electric, fueled by both groundbreaking projects and lavish side events—such as SUI hiring out an entire nightclub. However, this display of wealth raised questions about funding sources, notably whether such expenditures come from marketing budgets.

Amid the excitement, a note of caution prevailed. Many interesting projects were showcased, but the prevalence of scams and "deadwood" projects was also evident. During the event, our team noticed that many of these underperforming ventures are likely to disappear over time, reinforcing the enduring value of investing in Bitcoin.

A standout highlight was FET's AI robots (DesdemonaRobot), an impressive creation believed to have been initiated by Singularity. Its advanced capabilities prompted both awe and introspection, raising profound questions about humanity's role in an increasingly AI-driven world.

In summary, Token2049 reflected an industry at a crossroads. While substantial capital continues to flow—evidenced by lavish events and aggressive funding—the crypto landscape is shifting. Venture capital has changed the game, making significant gains on altcoins rarer for retail investors. As a result, many are gravitating towards memecoins and community tokens. Amid these changes, the enduring dominance of Bitcoin remains a central theme, serving as a beacon of stability in a rapidly evolving market.

Bitcoin's Bullish October

Source: https://x.com/CoinpediaNews/status/1833499655092769028/photo/1

We have just entered what has historically been the most bullish month for Bitcoin. Since 2013, Bitcoin has seen positive returns in 9 out of the past 11 Octobers, making it one of the strongest months for Bitcoin in terms of price growth. On average, October has delivered an impressive 23% return. If Bitcoin follows this historical trend, a 23% gain from the current price would push Bitcoin to a new all time high of $78,000 USD. Are you prepared for the potential rally?

With Bitcoin currently battling within a five-month bull flag, October could serve as the catalyst that pushes Bitcoin past resistance levels and into uncharted territory. A breakout from this formation might result in a surge of buying activity, potentially propelling Bitcoin to new all time highs.

Don’t miss the chance to position yourself for the upcoming rally. Reach out to your Stormrake broker today to lock in the best execution price, there is no second best.

Bitcoin Technical Analysis:

A clearer view of the chart can be found here: https://www.tradingview.com/x/TfYUizFC/

Bullish momentum was halted for a few days upon reaching the 200 SMA and the previous lower high. This was the last stand for the Bitcoin bears, but they failed. For the first time since June, BTC has created a new high, thus flipping the overall trend back to the upside. Not only has BTC created a new high, but it has also broken out of the bull flag channel. If this bull flag is to play out, then BTC will push on and create new all-time highs. A pullback to the top of the flag channel may occur; these patterns often find themselves retesting the breakout before continuing to the upside

The combination of the current breakout and bull flag, occurring during what is Bitcoin's most successful month, is a recipe for success for the entire space.

The First Interest Rate Cut in 4 Years:

The U.S. Federal Reserve recently implemented its first interest rate cut since March 2020, reducing rates by 0.5% to a new range of 4.75%–5%. This move aligns with forecasts and marks a significant shift in monetary policy after a prolonged period of rate stability. Following the decision, Federal Reserve Chair Jerome Powell addressed the media to provide clarity on the rationale behind the cut and to outline potential future monetary actions.

This rate cut and the insights from Powell suggest a measured and responsive approach by the Federal Reserve. By prioritising data-driven decisions and maintaining flexibility, the Fed aims to navigate economic challenges while fostering stability. Investors and market participants are advised to stay attentive to future announcements, as the central bank's actions will continue to be influenced by evolving economic conditions.

Is the Rate Cut Bullish or Bearish for Bitcoin?

The recent 50 basis point rate cut has stirred debate on its implications for Bitcoin. As yields decrease, the U.S. dollar becomes less attractive, leading to a decline in the value of U.S. bonds. This environment encourages investors to move toward risk-on assets due to cheaper borrowing costs. Historically, large rate cuts have been associated with signs of economic instability, and equities have performed better after gradual rate reductions compared to the swift cuts typical during economic crises. Different sectors are impacted variably, influenced by shifting consumer demand and sensitivity to interest rates.

For Bitcoin, the rate cut sends mixed signals. Traditionally, rate cuts have been positive for hard assets like Bitcoin because they are inflationary, prompting capital to flow into assets that serve as stores of value. Contrary to historical expectations, both Bitcoin and traditional markets have rallied following the 50 basis point cut. Since the announcement, gold has reached new highs—up 4%—the S&P 500 has increased by 2%, and Bitcoin continues its bullish momentum with an 8% rise. This immediate reaction suggests that, despite historical precedents, the rate cut may be bullish for Bitcoin in the current economic landscape.

Market Update

Here is the fast five of what you need to know about the market in September 2024:

Bitcoin ends the month up 11% after recovering from an earlier 11% decline during the month
Toncoin recovers and re-enters the top 10 cryptocurrencies after previously falling out.
Ethereum is up 10%, while Solana continues to outperform Ethereum, closing the month up 20%.
Fantom rises 60% during September, gaining 35% since its first mention in our Morning Note.
Nervos Network (CKB) breaks into the top 100 after closing the month up 121%.

Video of the month

The Memecoin Supercycle

In the news

Caroline sentenced to 2 years for FTX fraud:

Caroline Ellison, a former top executive at the cryptocurrency exchange FTX and ex-girlfriend of its founder Sam Bankman-Fried, has been sentenced to two years in prison for her role in one of the biggest financial frauds in U.S. history. Ellison, 29, admitted to charges including wire fraud and money laundering as part of a plea deal and testified against Bankman-Fried, who received a 25-year sentence for stealing more than $8 billion from customers. She was ordered to forfeit over $11 billion to the court and may be required to pay additional restitution.

Blackrock leaning towards BTC over growing concerns surrounding the US Dollar:

BlackRock’s involvement has significantly boosted Bitcoin’s legitimacy and price, driving it from $30,000 to $74,000 after filing for a Spot Bitcoin ETF in late 2023. As institutional interest grows and concerns over the U.S. dollar rise, BlackRock's recognition of Bitcoin as "digital gold" further cements its role as a mainstream financial asset and a hedge against economic uncertainty.

Stormrake's Morning Note:

We have relaunched our Morning Note. These are quick 3-4 minute reads sent to your inbox 5-6 days a week. They recap the previous day's trading, key price levels for BTC and ETH, notable events, as well as the 'Stormrake Spotlight,' which focuses on a coin that we believe will perform well over the course of the week. Our two most recent picks have been FTM and ETH, both great choices.

Find our Morning Note here and be sure to subscribe: https://stormrake.substack.com/

Bitcoin and Ethereum ETF Performance:

During the week of September 23 to September 27, Bitcoin spot ETFs saw a net inflow of US$1.11 billion. BlackRock's ETF, IBIT, accounted for US$499 million of this inflow, while the 21Shares Bitcoin ETF, ARKB, received US$269 million.

In the same period, Ethereum spot ETFs experienced a net inflow of US$84.51 million. Grayscale's ETF, ETHE, had an outflow of US$127 million. Conversely, BlackRock's ETF, ETHA, saw an inflow of US$94.95 million, and Fidelity's ETF, FETH, attracted US$64.91 million.

Education

How Bitcoin is Mirroring the Internet's Boom:

Both Bitcoin and the Internet were initially dismissed by sceptics as fleeting bubbles destined to burst. Critics argued that the Internet was a passing fad, and in its early days, Bitcoin was often labelled a speculative asset with no intrinsic value. However, both technologies have defied these predictions, demonstrating resilience and sustained growth over time. The trajectory of Bitcoin's adoption closely parallels the early growth of the Internet, highlighting a transformative shift in how we perceive and utilise technology.

The similarities between the two extend beyond scepticism and into their adoption rates. In the 1990s, the Internet was a nascent technology, met with uncertainty and limited to niche communities. Similarly, Bitcoin began as an obscure digital currency understood and used by a small group of enthusiasts. Statistical comparisons reveal that Bitcoin's user base is expanding at a rate akin to Internet adoption during its formative years. It took the Internet approximately seven years to reach 100 million users; Bitcoin is on a similar path, with adoption accelerating due to increased accessibility and global connectivity.

This pattern suggests that Bitcoin could become as integral to everyday life as the Internet is today, fundamentally altering finance, commerce, and even governance. The development of supporting infrastructure plays a crucial role in this evolution. The Internet's growth was propelled by advancements in hardware, software, and network capabilities, making it more user-friendly and accessible. Bitcoin is experiencing a comparable evolution with the creation of user-friendly wallets, exchanges, and Layer 2 solutions like the Lightning Network, which enhance scalability and transaction speed.

Moreover, institutional adoption and regulatory clarity are legitimising Bitcoin, much like early Internet regulations helped foster trust and widespread use. As governments and major financial institutions begin to embrace blockchain technology, Bitcoin's position as a mainstream asset strengthens. This institutional support not only boosts confidence among individual investors but also paves the way for innovative financial products and services.

In essence, the adoption of Bitcoin is not just about a new form of currency but represents a paradigm shift in how we understand and interact with digital assets. Drawing parallels with the Internet's history provides valuable insights into Bitcoin's potential trajectory and the profound impact it may have on global economic systems. Both have overcome initial scepticism and accusations of being mere bubbles, solidifying their roles as transformative forces in the modern world.

Stormrake on Tour:

We are thrilled to announce two major events that our crypto brokerage is hosting and sponsoring in the coming weeks. Designed for investors and enthusiasts alike, these events offer unparalleled opportunities to gain insights into the evolving landscape of digital assets and alternative investments.

Beat The Reset: The Great Australian Roadshow (October 1 - 6)

Join us at "The Great Australian Roadshow" coming to a major city near you. Where our crypto brokerage will dive deep into market insights, cryptocurrency trends, and future opportunities in digital assets. The evening will also feature valuable insights into gold and precious metals, providing a comprehensive look at alternative asset classes and their future. It’s an ideal event for those looking to understand the broader economic landscape and explore diverse investment opportunities in a rapidly shifting financial world.

You can find tickets and detailed information about dates and locations below:

https://www.eventbrite.com.au/cc/the-great-australian-roadshow-3608699

Australian Crypto Convention: (November 23-24)

Our brokerage firm is excited to attend the upcoming Australian Crypto Convention in Sydney, a premier event for the digital asset industry. It’s a unique opportunity to gain the latest insights into cryptocurrency trends, blockchain technology, and investment strategies from leading experts. We’re pleased to offer our clients discounted tickets to join us at this highly anticipated event. Don’t miss out on exclusive networking opportunities, cutting-edge discussions, and the chance to stay ahead in the evolving world of crypto.

Find the tickets below:

https://auscryptocon.com/?utm_medium=ctr&utm_source=email&utm_campaign=stormrake1

Written by Alexandar Artis

Memes of the month

Start Your Brokerage Account

Get Started

If you enjoyed this Rake Review, feel free to open an account and gain access to more proprietary research and work with your very own dedicated crypto broker.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Disclaimer

The Rake Review: July 2024

Thu, 01 Aug 2024 16:02:14 +1000

"Then you win."

Safe to say July has been a notable month for Cryptocurrency and global events. Bitcoin went through a major sell off before politics took centre stage and assisted with a recovery. It was expected that a change in political sentiment would be positive for Bitcoin, but no one could have expected how these events would have unfolded.

It’s Been Ignored, Laughed at, Fought Against, but is the Final Era of Bitcoins History Finally Here?

Just over a year ago, we put out a Rake Review covering the growing concerns surrounding government actions to deliberately restrict everything to do with cryptocurrency. SEC lawsuits were flying left and right, everything other than BTC was being labelled a security, banks were removing AUD rails to crypto exchanges and major financial institutions were bad mouthing Bitcoin.

As of today, we have won. A mere 16 months later, Bitcoin and Ethereum have had spot ETFs launched with BItcoin seeing record breaking inflows within the first 24 hours of trading. Institutions such as Blackrock who’s CEO Larry Fink was a renowned Bitcoin dismisser has flipped his tone and admitted he was wrong about the asset. Bitcoin is now at the point where it is being politicised to garner more votes and support.

Bitcoin 2024 saw invites to both Donald Trump and Kamala Harris to speak. Trump a new endorser of BTC, whilst Harris has been considered the opposite with the Democrats spending the last four years battling Bitcoin and Crypto. Since taking over for Biden, Harris herself has yet to give her stance on Bitcoin and Crypto.

At Bitcoin 2024, Trump has announced his plans for Bitcoin and Crypto if he were to be elected; he intends to make the US the crypto capital of the world, create a strategic Bitcoin reserve, fire Gary Gensler, end Operation Choke point 2.0 and bring Bitcoin mining back to the US.

For those who are unfamiliar with some of the propositions above. Gary Gensler, a Democrat and the current SEC Chairman has been the one leading the fight against cryptocurrency, whilst Operation Choke Point 2.0 is a concerted, government-backed effort to discourage traditional finance institutions from servicing the crypto industry.

All these propositions by Trump are extremely bullish for Bitcoin and crypto. As a result of this, Trump has received support from the majority of the crypto space. Similarly, Independent nominee Robert F Kennedy has endorsed Bitcoin and announced that he will sign an executive order for the US to buy 550 Bitcoin per day to build a reserve of 4 million BTC, if elected president. However, it is statistically improbable for RFK to win the election, the support for Bitcoin is positive. The Democratic Party is pushing Harris to ‘reset’ her crypto stance in an attempt to garner more support from crypto users.

Politicians or their advisors are realising that most Bitcoiners are "single-issue voters" who will vote solely based on the candidates crypto stance.

Overall, it is an outstanding change in sentiment from the government, one that can only be viewed as a positive for the longevity of Bitcoin. As the ones who were fighting Bitcoin the hardest, are now the ones who are offering Bitcoin products and supporting it.

The price doesn't reflect the enormous change of political sentiment yet, however we think there is a large chance that the next 6 months may well fix that. So, now may be the best time to take advantage of prices not reflecting the positive news.

June’s timeline of key events and impact on BTC with prices:

July has been an incredibly volatile month for Bitcoin and cryptocurrency. Here is a simplified timeline of the events that had a great impact on BTC price.

July 1-8:

Mt Gox, German Government and US DOJ begin mass selling of Bitcoin (BTC falls from $63.9k to $53.5K - approximately a 15% pullback).

July 12:

Germany run out of BTC (12 July, $57k).

Assassination attempt on Donald Trump (12 July). The Trump Pump starts a BTC rally, 15% in 5 days ($57k to $66k).

July 17:

Bitcoin reaches $66k as a result of the Trump Pump.

July 15-22:

Mass ETF Inflows, BTC reaches $68.5k.

July 22-24:

Grayscale move almost $3 B worth of BTC to exchange (8% decrease from $68.5k to $63.5k).

July 24:

Ethereum ETF is launched, with almost $1.1 billion in volume traded, but only a net inflow of $100m due to Grayscale outflows (ETH falls 11% in a day from $3500 to $3080).

July 26-27:

The anticipation and rumours begin of Donald Trump endorsing Bitcoin at BTC 2024. BTC increase 10% from $63.5k to $69.4k.

July 28:

Trump speaks at BTC 2024, laying out his bullish plan for Bitcoin if he is to become President again. BTC reclaims $70k for a brief period of time before retracing back to the current levels of $66k.

Market Update

Here is the fast five of what you need to know about the market in July 2024:

Bitcoin increased 3.3% in July.
The Ethereum ETF launched at the end of the month yet fell ~6% in July.
No new coins in the top 10, XRP and DOGE moved up in the rankings this month moving from 8th to 6th and 10th to 9th respectively.
A volatile month for the total crypto market cap;ending the month 1.5% up after being down 15% and up 8% at times throughout July.
The total net flow of BTC ETFs was + $124.1 million USD.

Video of the month

Donald Trump's Official Keynote; Bitcoin 2024

In the news

US Elections: Trump shot, Biden catches COVID and pulls out, Harris takes over.

This race for the US Presidency may be one of the most controversial, eventful and entertaining elections of all time. Donald Trump survived an assassination attempt. The last assassination attempt on a US President was 1981, 43 years ago. Joe Biden caught COVID and pulled out of the race. Vice President Kamala Harris become the likely Democratic Presidential Candidate. Many conspiracies were born as a result of these events.

Ethereum ETF Launched:

After receiving SEC approval months ago, the Spot Ethereum ETF has launched. The short term impact was not favourable for the price of Ethereum. ETH is currently 20% lower than when it was approved. The launch was met with great volatility before retracing 11%. This is due to the people buying the rumour and selling the news paired with major outflows from Grayscale. Is this a pattern we will see when more crypto ETFs are launched? Extreme volatility followed by a short term pullback of the asset or is it due to Grayscale outflows.

Grayscale Movements (Bitcoin and Ethereum)

Grayscale outflows continue to hinder Bitcoin and we are beginning to see the same effect on Ethereum as a result of the Spot Ethereum ETF. Grayscale BTC outflows were a catalyst for Bitcoin reaching $53.5k. Whilst the Grayscale ETH outflows was the major catalyst of ETH retracing 11% on its launch day.

July saw a total of $354 million in net outflows

Grayscale’s ETHE net outflows totalling $1.7 Billion of outflows since July 24.

Education

Understanding Grayscale: Their Impact on Bitcoin and Ethereum

You may have heard the term grayscale, we’ve mentioned it in many of our reports. For those unfamiliar with grayscale and what they do and who they are. Here is an educational piece that will help you gain an understanding of why they are so important and can dictate Bitcoin and Ethereum's price.

Who are Grayscale?

Grayscale Investments is a digital currency asset manager and a subsidiary of the Digital Currency Group. Established in 2013, Grayscale has become one of the largest and most influential players in the cryptocurrency investment space, for good and bad reasons.

Grayscale’s Cryptocurrency Trusts:

One of Grayscale's most significant contributions to the cryptocurrency market is their series of investment products known as trusts. These trusts have been around for much longer than the recent spot ETFs launched this year. GBTC launched in 2013 and ETHE launched in 2017.

The full list of Grayscale’s cryptocurrency trusts can be found below:

The full list can be found here: (https://www.morningstar.com/asset-management-companies/grayscale-BN00000J3G/etfs)

Grayscale’s Challenges and Restrictions:

Grayscale faced several significant challenges and restrictions that impacted investors' ability to sell and redeem their holdings. The major obstacle was the hostile regulatory environment that the crypto space faced for many years.

Regulatory Hurdles:

The primary challenge for Grayscale was the regulatory environment. Regulatory bodies, such as the U.S. Securities and Exchange Commission (SEC), were initially hesitant to approve cryptocurrency ETFs due to concerns over 'market manipulation, security, and investor protection'. Without regulatory approval for ETFs, Grayscale's investment products remained structured as trusts. This lack of regulatory clarity and approval prevented Grayscale from converting their trusts into ETFs, which meant investors were not able to redeem/sell their GBTC or ETHE shares until the SEC approved ETFs.

How Grayscale Trusts Differ from Other Spot Bitcoin ETFs:

Grayscale Trusts, like the Grayscale Bitcoin Trust (GBTC), are structured as closed-end funds. They do not continuously issue or redeem shares for underlying assets, often resulting in shares trading at a premium or discount to the net asset value (NAV). In contrast, Bitcoin ETFs like IBIT are open-ended, allowing for the continuous creation and redemption of shares. This mechanism keeps the ETF's market price closely aligned with the NAV, providing greater price transparency and reducing significant premiums or discounts.

Grayscale Trusts also have a six-month lock-up period for newly issued shares, limiting immediate trading and reducing liquidity. Additionally, they generally have higher management fees compared to Bitcoin ETFs. On the other hand, Bitcoin ETFs like IBIT offer daily liquidity and lower expense ratios. They can be traded throughout the day on public stock exchanges, making them more accessible and affordable for a wider range of investors. These differences in structure and operational efficiency make Bitcoin ETFs a more attractive investment option compared to Grayscale Trusts.

Grayscale Finally able to sell:

The official launch of the Spot Bitcoin and Ethereum ETFs have allowed Grayscale investors to convert GBTC and ETHE into ETF products. This has allowed investors who were not able to sell their GBTC/ETHE for many years to finally dispose of these assets.

Since the launch of both Spot ETFs, we have seen consistent outflows from GBTC as those investors are finally able to sell their GBTC. Many of these investors are realising gains from investments made years ago. This same effect has been seen on ETHE with the recent launch of Spot Ethereum ETFs.

These mass outflows has been the main hindrance and anchor to Bitcoin and now Ethereum, when major outflows occur, prices of these assets fall.

Grayscale has played a crucial role in the cryptocurrency market by providing early investment products like the Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). Whilst these products were an early opportunity for investors to gain exposure, these investors were soon stuck and not able to sell their holdings.

The approval and launch of spot Bitcoin and Ethereum ETFs marked a turning point, allowing Grayscale to convert their trusts into more accessible ETF products. This change enabled investors to finally sell their long-held shares, resulting in significant outflows and impacting the prices of Bitcoin and Ethereum. As the market continues to evolve, Grayscale's influence on cryptocurrency investment remains significant but we are not far from the end of that influence.

Written by Alexandar Artis

Memes of the month

Start Your Brokerage Account

Get Started

If you enjoyed this Rake Review, feel free to open an account and gain access to more proprietary research and work with your very own dedicated crypto broker.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Disclaimer

The New AI Crypto Powerhouse - Artificial Super Intelligence

Wed, 03 Jul 2024 17:51:53 +1000

For those who weren’t able to catch the recent June Rake Review (our monthly wrap up), a crucial section covered the upcoming merge of AI crypto tokens into ASI. Three of the largest AI tokens within the sector are merging into one and creating $ASI (Artificial SuperIntelligence Alliance), which could be the AI token powerhouse of the crypto ecosystem.

Phase 1 of the Merge:

As of July 1, OCEAN and AGIX tokens will merge to be converted into $FET, in due time OCEAN and AGIX will cease to trade.

If your tokens are held on exchange and said exchange is offering to support the merge then they will be automatically converted. However, if the exchange is not supporting the merge, then your held tokens will not be converted and they will stay in the original token form.

Phase 1 has begun, with many exchanges already converting OCEAN and AGIX into FET and delisting OCEAN and AGIX from their platforms. If held in self-custody, then you will need to swap your tokens manually.

Self-custody holders of OCEAN and AGIX, the platform to swap the tokens into FET can be found here: https://singularitydao.ai/migrate-asi

Those who custody with us:

You would have received a trade confirmation email regarding the conversion of your AGIX/OCEAN tokens into FET.

As per our token merger policy, we have converted AGIX and OCEAN tokens into FET free of charge, and we have resumed custody of your newly received FET tokens. If you wish to dispose of your new FET tokens, please contact us. Otherwise we will convert those into ASI when available.

For Those Looking to Buy FET or ASI

For those who are interested in taking advantage of the merge and seek to purchase FET or ASI. FET remains purchasable whilst phase 1 is active and will be converted into ASI mid-late July. Thus meaning, ASI will begin trading once phase 2 begins.

If you seek to purchase ASI, there are currently two options:

Purchase FET and custody with us to have it automatically converted into ASI

Wait until the merge has been completed and then purchase ASI when trading begins.

Send an email to trade@stormrake.com to secure a FET or ASI purchase...

What's Next?

Once phase 1 is complete, phase 2 will begin mid-late July with FET tokens being converted into ASI. For those who custody with us, you will not be required to take any action as the tokens will be converted automatically.

Written by Alexandar Artis

Create a brokerage account today

Get Started

Reach out to us at Stormrake for further market insight and allow us to help you navigate the sea of mania and laser-eye memes, so that you can realise your goals in the market!

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.