Base Layer
Posts
🇭🇰 The bull market starts today

🇭🇰 The bull market starts today

PLUS: Beijing opens up to crypto

Alex M.
June 01, 2023

GM everyone. This is 2036, the crypto newsletter that pays you.

Here’s what we’re serving up today 🍲: today is one of the most important days in crypto in a long time. It could mark the beginning of a crypto renaissance - and of a new bull market.

Let’s dig in.

🥔 Today’s meat and potatoes

Get smarter on crypto in 2 minutes

Crypto is moving sideways, and investors are excited about the latest thing - AI.

But to those who are paying attention, the crypto opportunity just got A LOT bigger.

Crypto could reach a $10 TRILLION market cap in the next cycle.

This is not obvious for a lot of us because crypto follows an exponential adoption curve.

As our old man Albert used to say -

The greatest shortcoming of humanity is our inability to understand exponential growth

Albert Bartlett

Boom.

Relative to crypto, everything else is a sideshow.

The next cycle up could take crypto much higher than most people predict today:

Crypto could hit a $10 Trillion market cap in the next cycle

This will be driven by liquidity.

To clean up the mess caused by high interest rates, governments worldwide will likely need to:

lower interest rates dramatically
print money like crazy

This is good for all risk assets - including technology and crypto, which essentially move in tandem.

And while US regulators fight tooth and nail over crypto in the US, other places are welcoming crypto with open, regulated arms.

Like Hong Kong.

Starting today, Hong Kong will allow retail investors (i.e. people like you and I) to invest in crypto.

This is huge news because, for the past decades, Hong Kong has been a safe haven for capital moving out of China.

It’s no coincidence that China just recently released a whitepaper on crypto, deeming it inevitable and stating that it’ll get the support of the state.

Hong Kong’s experiment could be a first step for Beijing to understand how to regulate crypto.

That’s why we wouldn’t be surprised if the next bull market is driven by Asia. And today’s developments could be a major catalyst.

My working thesis atm is that the next bull run is going to start in the East. It will be a humbling reminder that crypto is a global asset class and that the West, really the US, always only ever had two options: embrace it or be left behind. It can't be stopped. That we know.
— Cameron Winklevoss (@cameron)
5:02 PM • Feb 19, 2023