January Week 5 - 2025

CRYPTO RESET
Where is Alt Season? Is It Cancelled?

If you’ve been in the crypto game for more than a minute, you’ve probably been asking yourself, “What happened to alt season?” Bitcoin’s been surging, yet altcoins aren’t popping off like they did in previous cycles. So, is alt season canceled? Not quite—but things are different this time.

Let’s get real about what’s going on. Back in 2013, there were about 500 crypto tokens. By 2021, that number exploded to somewhere between 300,000 and 3 million. Fast forward to 2025, and we’re looking at over 36 million tokens, with projections to hit 100 million soon. The sheer volume of altcoins has saturated the market, making it harder for any single token to gain momentum. Money that used to flow into a handful of solid projects is now being diluted across an ocean of meme coins and low-effort tokens.

Exchanges aren’t helping much either. They prioritize meme coin listings to drive user engagement, leaving truly innovative projects buried under the noise. Retail investors buy into these hype-driven coins, only to lose big and quit. It’s a cycle that’s slowing down the path to the next alt season.

But here’s the silver lining: alt season isn’t gone, it’s just evolving. When the meme coin mania fades, the capital will flow toward projects with real utility, strong fundamentals, and solid communities. This shift could pave the way for a more focused, impactful alt season, possibly the biggest one in crypto history.

The lesson here? Be selective. The days of throwing money at random tokens and expecting returns are over. The next alt season will reward those who do their homework and back projects with real potential. It’s coming, just delayed, not canceled. And when it hits, it might just blow previous cycles out of the water.

Stay tuned. 😎💰

AI RESET
China’s AI Power Move: A Signal to the U.S. and The Trump’s Administration?

In the world of geopolitics and tech, timing is everything. On January 20, as Donald Trump took the oath of office as the 47th president, China made its own powerful statement. The unveiling of DeepSeek R1, a groundbreaking AI platform, wasn’t just about technology, it was a clear message to the United States.

DeepSeek R1 is China’s answer to America’s OpenAI, but here’s the kicker: it was developed in just two months with a budget of $6 million. Compare that to the billions poured into similar American platforms, and the message becomes crystal clear China is innovating faster, cheaper, and smarter. Releasing this on the day of Trump’s inauguration was no coincidence. It was a strategic move, signaling that despite U.S. sanctions, China isn’t just surviving, it’s thriving.

This development isn’t just a win for China; it’s a wake-up call for the U.S. For years, the narrative has been that American companies like OpenAI and Google dominate the AI space. Yet DeepSeek R1’s performance shows that the playing field is leveling, and perhaps, tilting in China’s favor. By making the platform open-source, China has further disrupted the landscape, challenging Silicon Valley’s dominance and accelerating global AI innovation.

The implications are profound. We’re not just in a trade war anymore, this is an AI arms race. For the U.S., the stakes are higher than ever. Will Trump’s administration double down on containment strategies, or will it pivot to collaboration? One thing is certain: China’s move has redefined the rules of engagement. As the AI revolution unfolds, the question isn’t just who will lead, but whether global cooperation can outpace competition in shaping the future. 🇨🇳🤖🇺🇸 

MONEY RESET
What Does Warren Buffett Know That We Don’t?

It’s hard to ignore when Warren Buffett, the "Oracle of Omaha," makes a move—especially when that move involves selling off a massive portion of his stocks and stockpiling cash. While most investors are riding the wave of optimism fueled by a booming economy and a Federal Reserve loosening interest rates, Buffett is quietly sitting on an eye popping $325 billion in cash reserves. The question is, why? What does he see that others don’t?

Historically, Buffett has always been low on cash unless he anticipates trouble ahead. Right now, over 50% of his portfolio is in cash, his largest cash position since 2008. If you remember, back then, Buffett made a similar move. He sold off stocks in financial institutions, airlines, and automakers, even as others were riding the economic highs of pre-crisis years. When the 2008 financial meltdown hit, Buffett’s cash reserves allowed him to swoop in and make some of the most profitable investments of his career, like his legendary Goldman Sachs deal.

Fast forward to today, and we’re seeing echoes of that playbook. Buffett has sold billions of dollars' worth of shares in Apple, Bank of America, and other major holdings. His stock market indicator, which compares total market valuation to GDP, suggests that today’s market is even more overvalued than it was before the 2008 crash. That alone might explain his caution.

While many speculate that the tech sector could be the next bubble to burst, Buffett isn’t waiting around to find out. He’s ready for opportunities to arise when others panic. For the rest of us, his actions serve as a reminder: stay informed, build a safety net, and prepare for the unexpected. Whether or not a crash is coming, Buffett’s moves suggest he’s gearing up for a rare and profitable moment and that is definitely worth paying attention to. 😳

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.