17th February 2024 > > A bunch of stuff.

tl;dr

ETFS (again). The Conservative Party is a disgrace. The CCC has never been a supporter of jumped-up bureaucrats. Senator Elizabeth Warren and, last but best, digital gold.

Is that enough for a Saturday morning crypto dip?

Market Snap

Market Wrap

This is a rare Market Snap of late – virtually no change in the price of BTC.

I note the increase in the perpetual futures funding rate which is indicating greater leverage on the long side. I am surprised that we haven’t seen this earlier, given the recent price action triggered by the strong ETF flows. At the moment the mismatch is small, but one should not ignore the slightly elevated risk of a long squeeze. On the other hand …

BlackRock and Fidelity now own 1% of the total current supply of BTC.

After. Just. One. Month.

I originally believed that this ETF induced imbalance between supply and demand was a supply shock. It is looking ever more like a demand shock.

The two are not the same.

The ramifications of a demand shock are far greater and far more rapid for the price of BTC.

Occasional Series – The CCC remains fiercely apolitical

But politics impacts on cryptos. An unavoidable and very unfortunate truth.

After two stunning by-election victories for Labour, the Conservative Party is once again in turmoil, and deservedly so.

Both “Dishy” Rishi Sunak and Jeremy “not my real surname but you cannot use it in a friendly family publication” Hunt keep repeating the mantra that they believe in low taxes. It matters not whether you agree with them on that point. What matters is that their actions in taking tax to an extraordinarily high level demonstrates the lies and falsehoods in their public statements.

The Labour Party has never shied away from publicly expressing its desire to implement ever higher levels of taxation. Again, it matters not whether you agree with it on that point. It will stay true to its word, and its honesty about its intentions – regardless of the economic outcome of such policies – is what will give it a resounding majority at the next general election.

Which I think is going to be positive for cryptos.

Occasional Series – Gotta love local bureaucrats

Try to imagine getting planning permission for a large red square art installation in a public space. Just one of them. It ain’t gonna happen.

Let alone nine of these monstrosities.

Curious Cryptos’ Commentary – I do so hope this is true

It is claimed that one of Warren’s staff slipped this into her in-tray:

Beautiful.

Where is that “anti-crypto army” when you need it Ms. Warren?

Curious Cryptos’ Commentary – BTC is digital gold