Let Me Explain What ECB and Biden Mean for Crypto #52

Market Meditations | December 11, 2020

In today’s exclusive edition, we guide you step by step through the latest stimulus announcements by the ECB and Biden.We then explore how this will impact the markets and most importantly, how it will impact crypto-currencies. If you trade crypto, you don’t want to miss this one.

Let Me Explain What ECB and Biden Mean for Crypto

Stimulus, stimulus and more stimulus.
Besides being one of this year’s buzzwords, the topic has been one of the driving factors behind this year’s price action across all markets. I wanted to take a look at this week’s news about the European Central Bank (ECB) boosting the size of their emergency bond-buying program and the potentially new U.S. stimulus package by the end of the year. After outlining the news, we take a look at why all this ‘money printing’ potentially weakens a country’s currency and motivates investors to look for a hedge against rising inflation. And what’s a hedge against rising inflation? Yep, that’s right: crypto.

  • Ethereum Far Outpaces Bitcoin in Developer Activity in 2020: Electric Capital Report. The amount of developers working in crypto is growing for the first time since 2017, according to an annual report from venture firm Electric Capital. 80%+ of all active developers today became active in the last two years and one network remains the clear winner in terms of attractiveness to coders. More than 300 new devs join Ethereum (including ERC-20 projects) per month and there has been an 67% increase in monthly active developers in Decentralized Finance since January 2020. Monthly average of developers working on Ethereum sits at 2300, with Bitcoin taking the second position with an average of slightly below 400. Read more.

  • Insurance Firm Massmutual Buys $100 Million Worth of Bitcoin Through Nydig. Yesterday, The Wall Street Journal reported that a Massachusetts-based insurance company acquired $100m worth of bitcoin for its general insurance account, calling it ‘the latest sign of mainstream acceptance for the upstart digital currency.’ MassMutual bought bitcoin through a New York-based fund management company called NYDIG, who owns $2.3b worth of bitcoin and other cryptocurrencies under management. MassMutual said that their purchase was to take advantage of new opportunities while simultaneously remaining diversified. Read more.

  • Oil Rally Momentum Slows After Previous Day’s ‘Feeding Frenzy’. Oil took a breather following a swift run-up to a nine-month high, as concerns over an impasse in Washington about stimulus tempered optimism around an eventual demand recovery. Futures fluctuated near $47 a barrel in New York alongside a broader market decline as bipartisan talks on another round of U.S. fiscal stimulus stalled. Meanwhile, following Brent’s rally above $50 a barrel on Thursday, the benchmark settled technically overbought in a sign it was due for a pullback. Read more

  • Defi Lending Protocol Startup Swivel Finance Raises $1.15 Million. In a seed round led by investment firm Multicoin Capital, DeFi lending protocol Swivel Finance has raised $1.15m in funding. The seed round is joined by some well-known investors like Electric Capital, CMS Holdings and Divergence Ventures. The project will use the funds to hire additional engineers and launch the protocol on the Ethereum mainnet in the next few months. Swivel co-founder Traversa said “we’ve been hearing lenders ask for fixed-rate products for a long time, but when it came to backing those fixed-rates, the incentives just weren’t there previously.” Read more.

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Michael (@boxmining) is a popular crypto content creator and influencer, investor and advisor. He has built one of the biggest Youtube accounts (217k subscribers) in the space and was recently appointed as a strategic advisor by Genesis Block. Michael also hosts a…

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