₿ Could The U.S. Start Buying Bitcoin Soon?

What’s on the Menu 🍴

Last week was WILD…

With bitcoin popping and earnings season in full swing!

Here’s what we’ve got for you today:

• What To Watch This Week 👀

• Last Week’s Bitcoin Price Surge Explained 📈

• Could The U.S. Start Buying Bitcoin Soon? ₿

Today’s newsletter is a 5 minute read.

What To Watch This Week 👀

The market rotation continued last week as small caps once again trounced the performance of large caps.

There were plenty of big moves both up and down as earnings season kicked into full gear.

This week promises to bring more of the same, as earnings season goes into overdrive.

Amazon, Apple, Meta, Microsoft, Intel, Qualcomm, Paypal, Coinbase, Starbucks, Boening, and Exxon headline a very busy reporting week:

We also have multiple central banks convening this week to set interest rates, including the US Federal Reserve.

On top of all that we have a busy macro calendar that includes key inflation and unemployment data:

• Euro area Q2 GDP (Tues)

• US JOLTs job openings (Tues)

• China manufacturing PMI (Tues)

• Bank of Japan rate decision (Tues)

• US Federal Reserve rate decision (Wed)

• Euro area inflation (Wed)

• Japan consumer confidence (Wed)

• Australia trade balance (Wed)

• Bank of England rate decision (Thurs)

• US ISM Manufacturing (Thurs)

• US unemployment report (Fri)

Volatility continues in crypto, with Bitcoin nearing the $70K level once again.

We’ll be keeping an eye on BTC as well as the following areas of the market:

📈 Rising Recently:

• Small Caps (IWM / IJR)

• Crypto (BTC / ETH / WGMI)

• Regional Banks (KRE)

• Homebuilders (XHB)

• Real Estate (XLRE)

• Biotech (XBI)

• Retail (XRT)

• Health Care (XLV)

📉 Falling Recently:

• Big Tech (QQQ)

• Semiconductors (SOXX)

• Internet & Software (IGV)

• Energy (XLE / XOP)

• Gold Miners (GDX / GDXJ)

Last Week’s Bitcoin Price Surge Explained 📈

Last weekend, bitcoin gained 12%…

And here are the major driving forces behind the move:

Trump's Bitcoin Backflip

At the Bitcoin 2024 Conference in Nashville, former President Donald Trump made waves with his bold declarations on Bitcoin and cryptocurrencies.

Once a skeptic, Trump has pivoted dramatically, now championing Bitcoin as a crucial asset for America.

Let's break down what this means for the crypto world and beyond:

• He emphasized the importance of protecting Bitcoin, advocating for Americans' right to self-custody and transact without government oversight.

• This move aligns with growing sentiment against excessive governmental control and surveillance, appealing to libertarians and crypto enthusiasts alike.

• Trump announced plans to establish a national Bitcoin stockpile, positioning the U.S. as the "crypto capital of the planet."

Bitcoin Price Surge

Bitcoin's price saw a notable uptick, driven by a combination of increased accumulation and reduced selling pressure.

Over $43 million in short positions were liquidated, adding fuel to the upward momentum.

And last Monday, the bitcoin ETFs drew over $500M of inflows.

Bitcoin 2024 Conference Highlights

The Bitcoin 2024 Conference brought together key figures in the crypto community, underscoring Bitcoin's growing mainstream adoption.

Industry Titans Speak Notable speakers included Michael Saylor and Peter McCormack, who highlighted Bitcoin's potential to revolutionize finance.

The conference emphasized the importance of decentralized finance (DeFi) and the role of Bitcoin in a rapidly evolving digital economy.

Mainstream Momentum The event showcased Bitcoin's increasing acceptance and integration into mainstream financial systems. As more institutions and influential figures back Bitcoin, its legitimacy and adoption continue to grow, paving the way for a broader acceptance of cryptocurrencies.

In summary, Trump's pro-Bitcoin stance, coupled with recent market dynamics and regulatory developments, signals a transformative period for Bitcoin and the broader crypto market.

As the U.S. moves towards becoming a crypto powerhouse, investors and enthusiasts alike should keep a close eye on these evolving trends.

Could The U.S. Start Buying Bitcoin Soon? ₿

Larry Fink, the CEO of BlackRock, recently changed his stance on Bitcoin.

Once a skeptic, he now believes in its potential, citing its legitimacy and role in providing uncorrelated returns and financial control.

This shift is significant, given BlackRock’s influence in the financial world.

Rumors are swirling that if Donald Trump were to be re-elected, he might declare Bitcoin a strategic reserve asset.

But what exactly is a strategic reserve asset?

It’s essentially a stockpile of resources a country can tap into during emergencies to stabilize its economy.

The most well-known example in the U.S. is the Strategic Petroleum Reserve (SPR), created in response to the 1973 oil embargo.

The SPR acts as a national savings account in oil, meant to buffer against future oil crises.

Bitcoin’s potential inclusion as a strategic reserve asset would be groundbreaking. The U.S. balance sheet might start reflecting Bitcoin holdings, much like it does with gold and oil.

As we mentioned earlier today, Trump hinted at favorable policies for Bitcoin and other cryptocurrencies if re-elected.

His statements at rallies have promised to support the self-custody rights of crypto holders and to oppose the creation of a central bank digital currency.

This potential political shift, coupled with BlackRock’s newfound support, could lead to a significant increase in Bitcoin’s institutional adoption.

BlackRock, managing over $10 trillion in assets, could pave the way for other companies to add Bitcoin to their balance sheets, echoing moves by MicroStrategy and Tesla.

Kathy Wood of ARK Invest has also made bold predictions, forecasting Bitcoin’s price could reach $1.5 million by 2030 under certain conditions.

While the U.S. adopting Bitcoin as a reserve asset might not drastically move its price alone, it would set a precedent, encouraging other countries and corporations to follow suit.

Food For Thought 🧠

"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks."
- Benjamin Graham

DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.