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GM everyone. This is 2036.
Crypto’s had a difficult 48 hours.
Yesterday, Mt. Gox, a defunct crypto exchange, announced it was going to distribute Bitcoin and Bitcoin Cash to its creditors… 10 years after its demise.
This led to a market-wide fear of mass selling from creditors who would finally be made whole— and sent Bitcoin down below $60K 📉
No bueno.
Combine that with:
the German government offloading $3 billion of bitcoin
Bitcoin miners selling their BTC reserves to stay afloat
… and it was a perfect recipe for a bad day.
But lo and behold - crypto has recovered somewhat in the last 24 hours.
Here’s what I think happened: people with insider knowledge of the Mt. Gox distributions dumped their BTC before the news was announced, which would explain the heavy selling pressure in the last days.
But here’s where it gets interesting…
Some parts of the market are recovering - fast.
That includes the entire SOL ecosystem.
Over the last 24 hours:
SOL is up +9%
WIF is up +24%
POPCAT is up +70%
What’s that telling us?
The market is showing its hand 🤲
Altcoins have bled as Bitcoin struggled to make new highs… but at the slightest sign of BTC strength, the SOL ecosystem is the one that bounces the hardest.
Not ETH, despite its upcoming ETF— though that could change.
Instead, it’s like the market is desperately waiting for BTC to pump to send the SOL ecosystem higher.
It knows it has the most potential, that Solana is the trade of the cycle, and that memecoins are the best-performing narrative.
That’s why now is not the time to overthink this - or to midcurve it.
Memecoins are the luxury brand of crypto.
You don't have to understand anything about fashion to buy a cowhide leather wallet with the letters LVMH carved into it.
And you don't have to understand anything about crypto to make money with memecoins.
You don't have to understand cryptography, blockchains or decentralization.
Luxury allows you to get into fashion without knowing anything about it.
Memecoins allow you to get into crypto without knowing about it.
The big difference is you don't have to wait 2 hours in line in front of the LVMH store. You can trade crypto 24/7 from your living room.
Just like LVMH handbags, memecoins don't have utility. But they have value from the attention they generate.
An LVMH handbag only has value because it has mind-share attention that makes it valuable.
That’s why 30-somethings dump their paychecks into expensive handbags… and, now, into crypto too.
So, the market has told you where it wants to go next. Memes are back.
All we gotta do is to skate to where the puck is going.
And with some luck - July will be a better month than June.
It tends to be.
P.S.: On Thursday, 100 million people will tune in to see who the more pro-business and pro-crypto candidate is between Trump and Biden.
Last week, I discussed a wild crypto bet you can make on the outcome. It doubled 3 days after I published the email… but has since pulled back again.
If you missed it, you can check it out here.
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.