May Week 4 - 2024

CRYPTO RESET
Political U-Turn on Bitcoin: What It Means for Crypto Prices and the 2024 Election?

In a stunning reversal, both major U.S. political parties appear to be warming up to Bitcoin and cryptocurrencies, marking a significant shift from their previous skepticism. This newfound acceptance is likely driven by extensive research and the realization that a substantial portion of American voters are increasingly pro-Bitcoin. As the 2024 general election approaches, Bitcoin and cryptocurrency policies seem poised to become key issues for voters.

This political about-face comes at a crucial time for the cryptocurrency market. Bitcoin has rebounded to near its all-time high of $70,000, fueled by Wall Street's growing interest and what some call a "seismic shift" in Washington. The U.S. Securities and Exchange Commission (SEC) has created a favorable environment for Bitcoin, Ethereum, and other cryptocurrencies, adding to the momentum.

The implications of this shift are profound. For one, the endorsement of cryptocurrencies by both political parties could lead to more favorable regulations, further legitimizing the market. This bipartisan support is likely to attract more institutional investors, driving up prices and increasing market stability.

Arthur Hayes, a legendary Bitcoin trader, predicts that the Federal Reserve will resume printing money ahead of the Biden-Trump presidential showdown later this year. He believes this could push the Bitcoin price to an astonishing $1 million, giving it a market capitalization of around $20 trillion. Hayes argues that Bitcoin is the best-performing asset in the face of global fiat debasement, pointing to Japan's yen hitting a 34-year low against the U.S. dollar as a key indicator.

The potential for significant price increases has the cryptocurrency community buzzing with speculation. If both political parties continue to support Bitcoin, it could lead to unprecedented growth in the cryptocurrency market. This, combined with the expected increase in dollar and yuan liquidity, could create a perfect storm for Bitcoin and other cryptocurrencies.

As the 2024 election draws nearer, the stance of political candidates on Bitcoin will likely play a crucial role in swaying voters. The cryptocurrency community will be watching closely to see how this newfound political support translates into market performance. One thing is clear: the landscape of Bitcoin and cryptocurrency is poised for dramatic changes, and the next few years could surprise us all.

MUSIC RESET
The DoJ Takes Aim at Live Nation-Ticketmaster

The Department of Justice (DoJ) has dropped a bombshell on Live Nation and Ticketmaster, filing an antitrust lawsuit that aims to break up the two entertainment giants. This move comes after multiple reports surfaced, suggesting such action was imminent. The lawsuit alleges that Live Nation holds an unlawful monopoly over the ticketing industry, stifling competition and innovation while gouging US music fans with higher ticket prices.

US Attorney General Merrick Garland minced no words, stating that it's time to dismantle Live Nation-Ticketmaster to restore fairness and competition to the market. The lawsuit points to various anti-competitive practices, including Live Nation's control over performers, venues, and independent promoters, as well as its exclusionary contracts and acquisitions of potential rivals.

Live Nation swiftly responded, arguing that the allegations ignore the complexities of ticket pricing and mischaracterize the company's market position. They accused the current administration of populist antitrust enforcement, suggesting it is more about politics than genuine concern for consumers.

Meanwhile, lobbying organizations backed by secondary ticketing firms welcomed the lawsuit, signaling a broader industry divide. Live Nation's share price took a hit following the announcement, reflecting investor concerns over the company's future.

This legal battle unfolds against the backdrop of ongoing legislative efforts aimed at ticketing reform, including measures to curb speculative ticketing and tackle scalping. The outcome of both legal and legislative fronts will have significant implications not only for the US live music industry but also for global entertainment markets.

As the lawsuit progresses and with pivotal US elections on the horizon, the fate of Live Nation-Ticketmaster remains uncertain. However, the combined legal and legislative scrutiny represents a critical juncture for shaping the future of the ticketing and live music landscape.

MONEY RESET
China's Treasury Dump Sparks Speculation on Dollar Weakening Campaign

China's recent move to once again dump US treasuries has reignited speculation about its ongoing efforts to weaken the US Dollar. This strategic maneuver adds fuel to the narrative that China is gradually ramping up its campaign to undermine the dominance of the Dollar in the global financial system.

The decision to offload US treasuries reflects China's strategic economic goals and its desire to diversify its foreign exchange reserves. By reducing its holdings of US Dollar-denominated assets, China aims to reduce its exposure to potential risks associated with the Dollar's fluctuating value.

This latest action by China reinforces the perception that it is actively seeking alternatives to the Dollar as the world's primary reserve currency. Over the years, China has taken various steps to promote the internationalization of its own currency, the yuan, and to bolster the role of other currencies in global trade and finance.

The implications of China's treasury dump extend beyond the realm of economics and finance. Geopolitically, it underscores the shifting dynamics of global power and influence, with China asserting itself as a formidable player in the international arena.

Moreover, China's actions may exert downward pressure on the value of the Dollar, potentially impacting global financial markets and trade dynamics. This could have far-reaching consequences for countries and businesses that rely heavily on Dollar-denominated transactions.

While the full extent of China's strategy remains to be seen, its continued divestment of US treasuries sends a clear signal that the era of unchallenged Dollar hegemony may be coming to an end. As geopolitical tensions persist and economic rivalries intensify, the future trajectory of the global financial landscape hangs in the balance.

DISCLAIMER:
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 or investments. Please be careful and do your own research.