Solid Evidence That The BTC Selloff Was Newer Market Entrants
Plus some massive new government stimulus incoming
Happy Tuesday (holy crap is it only Tuesday?) Blockfolians
First, the printing machines are fired up! The big news is that President Trump and Treasury Secretary Steve Mnuchin have announced a slew of forthcoming stimulus. While many of the details are still to come, this is more or less what the crypto industry expected.
While the jokes abounded on crypto twitter that for all of us degens this was going to go straight back into buying crypto, there was some interesting evidence that in the crypto price crash of the last few weeks, that was more than cheap talk.
The Block shared reports from Simplex that users had been buying the dip while CoinMetrics went even deeper, examining the age of BTC sold to suggest that the vast majority were younger coins that had been last transacted with in the previous year.
Unchained Capital made a similar point
Good evidence for the idea that we have a healthy community of “HODLers of last resort”
Highly Relevant Reading
😳Drama in the Ethereum Classic Community | A board member of the Ethereum Classic Collective is resigning his role and withdrawing financial support on the basis of disagreements with that organization’s executive director. Not a good look.
💳Coinbase Card on Google Pay | Here’s one more in the adoption column, as users of Coinbase’s Visa card will now be able to transact via Google Pay. Meanwhile, a partnership with Wyre means that Opera users can now buy BTC and ETH via Apple Pay. Each of these stories individually may seem small, but in the long term, they make this entire asset class as dynamic as participants need it to be.
📈BlockFi raising interest rates | For users holding BTC and ETH on BlockFi, rates are about to go up. This is happening at exactly the time that rates are going down in traditional markets, and has to do with volatility creating new opportunities for the firm. Go BlockFi!
While markets reacted well to the President’s stimulus plans, many in crypto were sounding the warning.
Scott Melker put it more bluntly
A Really Big Number You Should Be Paying Attention To
That’s the size of a new token fund set up by Binance and their recently acquired India-based exchange WazirX to support Indian blockchain startups. A good reminder that our current market trouble shall pass and people will be building the whole way through.
I wish we had listened