Some housekeeping: The stack.money newsletter is now on the Substack platform as “The Stack Crunch”. Over the next few weeks, I’ll be writing more here to help you find the next 10X.
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First, if the bear market is getting you down, a quick bit of hopium:
1 – We’ve been here before. 70%+ drawdowns are normal for Bitcoin:
2 – Some stocks are down even more:
This is not the end of crypto.
1-Min Market Update
Bitcoin
Despite the recent rally, Bitcoin is seemingly still in bottom finding mode.
A spring back up to previous $28k support seems possible, but I would not count on it holding. Be wary of bull traps.
Altcoins
Altcoins are also still very much in a downtrend. Most charts technically look ugly, with little support.
My main view is still that we’ll see prices slowly bottom out towards the end of the year, or in early 2023.
Now is the time to research and slowly dollar cost average.
Macro / Stocks
European power prices hit a new high after Russian gas supply cuts.
Coinbase was downgraded to a “sell” by Goldman. The group appears to be trying to pick up a number of distressed crypto assets. More below.
Inflation in Turkey has hit almost 80%.
Weekly Projects to Watch
Note: these are powered by Stack’s ranking system. They haven’t been reviewed by a human. No system is foolproof. Always DYOR.
Top risers overall
Harmony ($ONE) ⬆️ 161%
Constellation ($DAG) ⬆️ 71%
WOO Network ($WOO) ⬆️ 64%
UMA ($UMA) ⬆️ 49%
Rocket Pool ($RPL) ⬆️ 35%
Top small-cap risers by overall rank
CoverCompared ($CVR) ⬆️ 9411%
Aluna ($ALN) ⬆️ 2771%
Sarcophagus ($SARCO) ⬆️ 1219%
TradeStars ($TSX) ⬆️ 818%
wLITI ($WLITI) ⬆️ 798%
Top News This Week
Goldman Sachs Seeks $2B to Buy Celsius Assets, FTX Is Seeking a Way to Buy Robinhood and Closed in on a Deal to Buy Blockfi for $25 Million
Goldman Sachs is on a mission to essentially raise $2 billion intending to buying assets of Celsius Network, which is a crypto lender that is currently struggling amid the turmoil of the crypto space. In this deal, Goldman would buy the company's assets at a "huge discount" if the company files for bankruptcy.
Sam Bankman-Fried’s FTX cryptocurrency exchange is exploring ways through which it might be able to buy Robinhood Markets. It is deliberating internally on how they can buy the app-based brokerage.
The cryptocurrency exchange FTX is also close to finalizing a term sheet to buy BlockFi, and a deal is expected to be signed soon. This comes after FTX provided a $250 million emergency line of credit for BlockFi, and FTX is expected to pay around $25 million for the company.
SEC's Gensler Names Bitcoin as a Commodity, MicroStrategy Buys Bitcoin Worth $10 Million, Deutsche Bank Predicts Bitcoin Can Reach $28K as Bitcoin Falls Under $19K, and El Salvador Buys 80 Bitcoin
The U.S. SEC chairman Gary Gensler said that Bitcoin was the only cryptocurrency that he felt comfortable calling a commodity publicly, something he said during an interview with CNBC.
Michael Saylor's Bitcoin-backed tech firm known as MicroStrategy Inc. ended up buying another 480 Bitcoin (BTC) which was worth around $10 million at the height of the collapse of the cryptocurrency. These coins were bought between May 3 and June 28 for $20,817 per cryptocurrency.
Deutsche Bank also made a prediction that Bitcoin could reclaim a value of $28,000 by the end of the fourth quarter of 2022. Deutsche Bank is a German multinational investment bank.
This occurred when Bitcoin dropped to $18,866.77, which put the biggest and most-known cryptocurrency under the $19,000 price range.
El Salvador's president, Nayib Bukele, made an announcement that the country purchased another 80 Bitcoin (BTC) amid a broader decline in the token's price. Specifically, the country purchased Bitcoin at $19,000 per cryptocurrency, which puts the total value of the transaction at $1.5 million.
Bentley Announced a Non-fungible Token (NFT) Drop and OpenSea Reports Email Data Breach
Bentley is branching out into the sphere of the non-fungible token (NFT) digital art. Specifically, Bentley Motors made an announcement that they would launch a one-time NFT drop on the Polygon (MATIC) network, scheduled to occur in September 2022 and will be limited to just 208 pieces.
OpenSea also shared light on the fact that an employee of Customer.io, which is a platform for the management of email newsletters and campaigns, leaked the list of OpenSea customers' emails to an outside party. OpenSea also said that malicious actors might try to contact OpenSea customers through emails from domains that look similar to OpenSea.io, such as OpenSea.org or OpenSea.xyz.
The Cardano Vasil Hard Fork Launched on the Testnet and Grayscale Sued SEC Over Bitcoin ETF Application Rejection
On July 3, 2022, Input Output, the development team of Cardano, made an announcement that they have successfully hard forked the Cardano testnet. This marked an important step in the journey towards the Vasil upgrade on the mainnet, expected to occur within the next four weeks.
Furthermore, the SEC rejected Grayscale's application to convert its Grayscale Bitcoin Trust to an exchange-traded fund. Afterward, Grayscale Investments ended up filing a suit against the U.S. Securities and Exchange Commission (SEC).
Thanks for reading,
James