There has been so much going on in the crypto space over the past 2 weeks that it can sometimes be hard to keep track of everything.
Prime example: Ethereum just went through one of its most consequential upgrades ever. That was the London upgrade and since then ETH has been on a monumental rally.
However, is this likely to continue?
Well, that’s exactly what I am going to explore in my video today. It’s my much needed update on Ethereum where I will dive into some of the most important stats and metrics to watch post hardfork. I will be analysing burn & emission rates, onchain stats and ETH 2.0 projections.
I will also be taking a look at some of the more favourable market developments that have been present even before the upgrade. These include more institutional adoption and trading volume as well as bullish ETH options markets.
So, if you hold ETH or are considering it for your portfolio – this video is for you.
You can watch it right here.
📊 Portfolio Update 📊
As I mentioned last week, I was considering adding some more tokens to my portfolio. One of those was MATIC. And, if you watched my video on my top altcoin picks this week, you will have seen that I decided to pick it up. This was done with some of that outstanding USDC.
Apart from that, there were no other changes to the portfolio this week. I am pretty happy with the top level allocation to some of my largest holdings. Of course, I am constantly on the lookout for attractive entry opportunities in numerous coins / tokens – all of which I cover in my Telegram channel.
ETH 32.76% | BTC 28.28% | ADA 9.21% | SOL 6.59% | PAXG 3.99% | USDC 3.89% | DOT 3.64% | INJ 2.50% | RUNE 2.24% | YFI 1.88% | MATIC 1.51% | LINK 1.45% | ATOM 1.44% | REN 0.31% | LIT 0.30%
📈 Thoughts on Market 📈
We seem to be approaching the final few phases of this bull market, and there are a few reasons why.
Ethereum had it’s historic upgrade last week, Cardano’s smart contract hard fork is confirmed for September 12/13, and Polkadot’s Parachain slot auctions should be happening any day now.
It also looks like Bitcoin will be getting an ETF, though it won’t be the crypto backed ETF everyone was hoping for…
That’s because SEC Chairman Gary Gensler said he’s open to approving Bitcoin ETFs but only those backed by Bitcoin futures. I covered this in my video yesterday on the SEC’s crypto view.
If you were around back during the last bull run, you’ll remember that the launch of the CME Bitcoin Futures actually marked the market top, at least for Bitcoin. One has to wonder if a Bitcoin ETF of some sort could mark the cap of our current bull cycle. The more ETFs that start buying up futures to create synthetic exposure to Bitcoin, the more precarious the market conditions become.
If you watched my video about crypto ETFs, you’ll know that the SEC has 45 days to confirm or reject an ETF application. Given that a bunch of Bitcoin futures backed ETFs were filed last week, this means we could see an approval in the coming weeks.
This could also coincide with El Salvador’s official launch of Bitcoin as a legal tender in the country which is due to take place on the 7th of September. And let’s not forget about any potential amendments to that controversial crypto provision in the infrastructure bill (more on that below).
However, what’s even more exciting is what is happening on the altcoin front in September – and it’s here where things get interesting…
During the last bull market, Litecoin was the first crypto to skyrocket before the rest of the market joined in. There are a lot of traders who think we’re going to see something similar this time around, with an altcoin of some kind leading the charge for the final phase of the bull market.
If this scenario does in fact play out again, Cardano seems to be the crypto that’s leading the charge this time around. If we see ADA break past it’s all time high in the next week or two, we could see the rest of the large altcoins follow suit, including Bitcoin.
Alternatively, you could argue that what’s leading the charge this time is the NFT market. There are literally photos of low resolution rocks selling for hundreds of thousands of dollars. Also, I was seeing rumours on Twitter that it was costing people thousands of dollars to buy NFT mints (and that’s just the gas fees!).
Unlike the crypto market, there isn’t very much liquidity in the NFT market, and as much as different users are tracking the ceilings and floors for different NFTs, those don’t really exist as much as you think they do.
When the NFT hype starts to wane, I think that crypto will find its way into altcoins and Bitcoin, and maybe that momentum shift has already begun. Oh and if you’re curious what owning an NFT actually means, you can watch my recent video about NFTs here.
🗞 Latest From Capitol Hill 🗞
For someone who rarely follows politics, the recent showdown on Capitol Hill over that infrastructure bill was one of the most exciting things that has happened this year. As I mentioned last week, I was initially quite disheartened by the fact that lawmakers could so arbitrarily make such far-reaching legislation.
However, this week filled me with a lot more optimism. To me, it truly illustrated just how far we have come in the crypto space. Politicians were hoping for a speedy vote to an amendment that they thought was uncontroversial.
However, they quickly learned just how misguided that was. Not only did they face the full brunt of the crypto lobbying industry, but they also fielded thousands of calls from the crypto community. A community that is perhaps the most passionate that there is.
These efforts were so impactful that Portman, Warner & Sinema came together with Lummis & Toomey to work on a compromise. A compromise that sufficiently tightened the definition of a broker to exclude validators and miners as well as exempting those developers from any action.
And, given that it was a bi-partisan amendment, it would have passed had it not been for a single Senator…
That’s right, 87 year old Richard Shelby voted against the amendment which of course scuppered it. He claimed that he supported the amendment but voted it down because he needed more defense spending. The crypto community didn’t buy it and you can see just how passionate they are in their responses to his Tweet.
And, it seems as if the crypto defenders on the Hill are gearing up for a bigger battle in the House. There are already a number of pro-crypto congressmen that are looking to narrow the wording of the provision and give protections to developers and validators. These efforts have clearly been laid out in this piece by Politico.
Of course, there are still many challenges for any sort of amendment. If there are specific changes to the crypto provision then there is the possibility that it will have to go back to the senate and put the entire bill itself into question.
However, they are trying and we should not underestimate the power that the crypto community and industry can wield. Indeed, the blowback was so intense that the treasury has come out and tried to assuage fears. They have claimed that they will only be seeking tax data from those firms that they consider brokers.
Of course, that would require us to trust Yellen’s treasury department – a dubious proposal at best.
Irrespective of what happens in the house, it’s still remarkable where we are. If you had told me just a year ago that we would have intense conversation in the US congress about different DLT consensus mechanisms, I would have called you crazy. But crazy it is and here we are.
Crypto is here to stay and everyone knows it. They can try to make our lives difficult with burdensome regulation but every action has an equal and opposite reaction. And now that we have shown our collective bargaining power, we know how we can effectively use it going forward.
🔝 Top Newbie Tips 🔝
If I’m correct that we’re in the final phases of the bull market, this means we’re about to see some extreme price volatility. A big part of that is coming from the fact that the balance of cryptocurrency on exchanges, namely BTC and ETH, continues to fall. When there’s a shortage of supply, volatility tends to spike.
As such, I would not advise trading under these conditions, nor would I even pay much attention to the day to day moves, and certainly not anything happening on the hourly. It will do a number on your mental health (believe me). The solution then? Zoom out. Focus on the weekly. Keep your cool. Watch those big moving averages.
Further to the first point, volatility means that crypto exchanges are put under pressure. Earlier this week, Binance suddenly went down for “maintenance” as is often the case when the market gets hot. A few of my mates didn’t have the best of times with that to say the least, and it’s not an issue that’s unique to Binance. We see Coinbase going through this constantly!
Exchanges have a habit of going down, or suddenly asking you for KYC, or not being able to withdraw, etc. etc. These are just a few of the top tips I discussed in my video about how to prepare for the bull market. I strongly recommend you give that a watchASAP.
Another thing to keep in mind is how much regulators are closing in on the crypto sector. I’ve heard and seen a lot of chatter about keeping your crypto gains in stablecoins in an attempt to avoid tax, or even just to sit on during the bear market. I do not recommend this whatsoever.
Firstly, because you should not be evading tax and secondly because you could get caught. Stablecoins are front and center for regulators like the SEC and the FATF, and especially now that Circle has announced plans to become a fully regulated digital bank. It is not inconceivable that KYC could be coming to anyone who’s holding USDC in their personal wallet.
These centralized stablecoin issuers have previously frozen user accounts on behalf of authorities, and the last thing you want is to get caught with your pants down.
Now, if we see new all-time highs in the coming weeks, your family and friends will probably come to you again asking for advice about what to buy, when to sell, or even just how to make back their losses. I know it’s tempting to help those that you care about, but you have to be clear that you’re not giving them any financial advice.
You might be able to handle the volatility, but retail investors definitely can’t. If having them constantly come to you every time the price changes isn’t stressful enough, just wait if they fail to sell before the price starts to fall. You won’t want to be on the other end of that conversation, believe me.
🔥 Deals of The Week 🔥
I imagine most of you are pretty excited about the recent price action of those crypto markets. However, those that are serious about crypto are probably plotting how they can take advantage of these markets for maximum gains.
If that’s you, then I have two crypto platforms you should know about!
Best US Exchange: It’s no secret that crypto regulations in the US are some of the strictest in the world. That’s made things a little tricky for those looking for a top-notch regulated US crypto exchange.
If that’s a problem you have been struggling with then you’ll definitely want to check out FTX US. Here you’ll get access to a solid selection of cryptos, the ability to deposit via bank and be able to enjoy super competitive fees.
Oh yes, it turns out that legendary quarterback, Tom Brady, is a shareholder in FTX US. If you want to learn more about that, then I recommend you watch my dedicated video review on this exchange!
The great news about FTX US is that I’ve also been able to secure you an exclusive deal too. Sign up and you’ll get your first $30 in trading fees for FREE! That means that most people will never pay a cent in fees at this exchange! On top of that you’ll also get a 10% trading fee discount for life!
👉 Sign Up To FTX US & Get $30 OFF Fees + 10% Discount
💸 Earn Crypto Interest: Did you know that you can earn crypto interest with Bitcoin, Ethereum and other cryptocurrencies? It’s actually a super popular way for crypto dabblers to earn passive income and to further build up their crypto stack.
But which platform is best? Well, I’ve compared BlockFi and Celsius side-by-side in a recent video. But,what if you don’t have 23 minutes spare to watch that?
Well, I honestly reckon Celsius will be the best option for most people. Here, you can earn up to 17% interest on your crypto and you even get those interest payments weekly!
👉 Try Out Celsius & Get Up To 17% Interest! Deposit $400 & Get $50 FREE – Use Code: COINBUREAU
🗞️ Crypto News Focus 🗞️
– US Infrastructure Bill – Mark Cuban says that shutting off crypto ‘growth engine’ would be like banning e-commerce in 1995.
– Coinbase Rake It In – Coinbase crushes revenue record and brings in $2 billion in Q2!
– Visa & Adoption – Visa ways $1 bn worth of crypto was spent using crypto-linked cards in the 1st half of 2021!
🔮 Video Pipeline 🔮
- Bitcoin lightning network: what’s going on there?
- Top regulated crypto exchanges 2021
- Audius (AUDIO): music to your ears?
- My favorite crypto YouTubers
- Stock Market companies holding BTC!
- Most Insightful Institutional Report EVER!
🏆 What’s New At CoinBureau.com This Week? 🏆
✅ How to Build a Cryptocurrency Portfolio: Fill Your Bags!
✅ MakerDAO: 1st Unbiased Currency and Decentralized Stablecoin
✅ SushiSwap (SUSHI): The ‘All You Can Eat’ DeFi Buffet
✅ Axie Infinity Review: NFT-Based Gaming Platform
That’s about all for this week’s newsletter. However, I do want to thank everyone who took part in my AMA on Reddit the other day. It was a delight to spend a bit of time hanging out with the crypto community over there.
Naturally, I was unable to answer as many questions as I would have liked. So, I’ll be going back to this AMA whenever I have time. This also means that those who missed the initial AMA have a chance to get their questions answered too.
Got a question for this crypto champ? Hit me up on that Reddit AMA!
Anyhow, I hope you enjoy my latest video and find it useful.
Guy your crypto guy
Disclosure: Authors may own cryptoassets named in this newsletter. These are unqualified opinions, and a Coin Bureau newsletter, is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor.