19th July 2023 > > The US and Glassnode.

tl;dr

Presidential hopefuls are chasing the crypto vote. Glassnode reports positive on-chain analytics.

Market Snap

Market Wrap

Oscillating around the psychologically important $30k price point we are essentially unchanged on a 4-month time horizon. The cooling of inflation expectations globally is positive for all risk-assets. Personally, I believe that this is the start of a process that will lead us back into a regime of quantitative easing resulting again in the depreciation of fiat versus all hard assets.

Curious Cryptos’ Commentary – Robert F. Kennedy Jr.

Following Ron DeSantis comments about a USD CBDC (“… not happening in this country”) another presidential hopeful is trying to attract the attention of crypto enthusiasts.

Robert F. Kennedy Jr. is best known for his surname. Apart from that he is also a prominent anti-vaxxer and often strays into health-related conspiracy theories. It is safe to say that his prospects of succeeding Joe Biden as POTUS are vanishingly small, though Twitter co-founder Jack Dorsey disagrees with me on that point.

Normally I would ignore everything Kennedy says. However, his musings about cryptos cannot fail to interest us.

He starts with a very sound, and factually accurate comment about the US Dollar:

“Backing dollars and U.S. debt obligations with hard assets could help restore strength back to the dollar, rein in inflation and usher in a new era of American financial stability, peace and prosperity.”

He proposes to start by backing 1% of short-term bill issuance with hard assets including … BTC.

We wish.

He also proposes that all dollar gains from buying and selling BTC would be exempt from capital gains tax.

We wish.

Curious Cryptos’ Commentary – Glassnode

Glassnode Analytics reports that long-term holders (that’s us folks) continue to accumulate BTC (again, that’s us folks):

As previously reported (https://www.curiouscryptos.com/post/14th-july-2023-good-news-day) 75% of BTC is now in profit. The 25% of supply acquired above $30k dates from the 2021-2022 cycle which resulted in all-time highs initially at $60k, followed by a retreat to $30k, and then again at nearly $70k.

That’s a lot of coins which did not participate in the $15k to $18k capitulation range in the latter half of 2022. It is hard to know whether these are coins held by diamond hands, or individuals who refused to crystallise book losses, but for now, any transfer of these coins at higher prices is easily absorbed by committed long-term holders.