28th October 2023 > > Supply shock & Ireland.

tl;dr

More evidence of an incoming supply shock. Ireland attracts yet more crypto tax dollars, whilst the UK’s ruling party watches from the sidelines, remaining politically impotent.

Market Snap

Market Wrap

Retail interest in BTC is ramping up as Google searches for “buy BTC” have grown by more than 800% in the UK alone in the last week. Speculative retail interest has always been a key driver of past rallies, though this time around it will be the sheer weight of institutional money that drives BTC to prices never seen before.

It is comforting to know that the dedicated CCC audience has been paying attention during the crypto winter and continuing to DCA. That is a far smarter approach than the one taken by the FOMO crowd, who are speculative in nature.

It is also worth noting that at this time-stage of past bull cycles there have been 40-60% drops taking us into a region sub $20k if that was to repeat. But diamond hands are prepared for all eventualities, grateful for the opportunity for cheap coins if that was to pass.

Curious Cryptos’ Commentary – Bankman-Fried

His defence is a simple one – blame the lawyer (Dan Friedberg) or he can’t remember.

Curious Cryptos’ Commentary – That supply shock I bang on about

Long-term holders now account for 80% of all coins mined leaving a free float of just 3.9mm coins valued at around $133b, not much larger than the number of coins that have not moved at all for a decade or more.

Curious Cryptos’ Commentary – Zodia

Fresh from setting up custodial services in Australia, Zodia is following Coinbase’s lead in setting up a European HQ in the Republic of Ireland. CEO Michael Walsh explains:

"VASP registration is an exciting development for Zodia Markets, and we’re delighted to be part of the burgeoning Irish digital assets ecosystem. The registration will act as a launchpad for the business to enter the EU, a market where we see significant opportunity and demand for our offering, and it paves the way for future MiCA authorization when the regulations are implemented."

I doubt anyone remains unconvinced now that a secure and stable regulatory environment, allied with a 12.5% corporate tax rate, is pivotal in attracting new businesses to Ireland looking to establish a base for their operations.

All these crypto tax-dollars could have been flowing into the UK, but this government’s failure to embrace cryptos, or to consider any other factors that might influence the business decision-making process, makes us all that much poorer than we would otherwise be.