November Week 2 - 2024

BITCOIN RESET
Is the Trump Presidency the Catalyst for Bitcoin’s Biggest Bull Run? 

With Donald Trump now President-Elect, the Bitcoin world is buzzing with speculation: are we about to witness the greatest bull run in its history? The signs are compelling. As of the time of writing, Bitcoin has already hit a new all-time high of $81,489, and some analysts are predicting it could hit $100,000 before Trump’s inauguration in January.

Here’s why this time feels different. Trump ran on a promise to make the U.S. the Bitcoin capital of the world, proposing a strategic Bitcoin reserve to cement America’s dominance in the digital asset space. If this becomes reality, we could see a cascade of nation-state FOMO (fear of missing out), with countries like China, Russia, and even the EU scrambling to accumulate Bitcoin to avoid being left behind.

The institutions are already piling in. MicroStrategy is about to kick off a $42 billion, multi-year Bitcoin buying spree, while ETFs are hoovering up thousands of coins daily. Even more bullish? China’s state media is now reporting on Trump’s Bitcoin plans—yes, you read that right. We’re entering a new era of mainstream and geopolitical Bitcoin adoption, and it’s happening fast.

It’s hard not to marvel at how far we’ve come. Back in 2016, when Trump was first elected, Bitcoin was trading at $700. Fast forward to today, and that’s a 10,000% increase. If the U.S. truly commits to a Bitcoin reserve, it could trigger a global Bitcoin arms race, pushing prices to unimaginable heights.

So, are we about to enter Bitcoin’s most explosive chapter yet? All signs point to yes. Strap in, because if history is any guide, this bull run could be unlike anything we’ve seen before. And for those still sitting on the sidelines—well, the window to get in before Bitcoin skyrockets might just be closing. 🚀🚀🚀

MONEY RESET
Arthur Hayes Exposes the Fed’s Playbook 

In a recent interview, Arthur Hayes delivered what can only be described as a mini master class on the U.S. economic and political mechanisms. The former BitMEX CEO laid bare the intricacies of the Federal Reserve’s real power moves, particularly the use of the supplementary leverage ratio (SLR). If you’ve been focused on interest rates and inflation, you’re missing the forest for the trees. Hayes explains that the SLR is the Fed’s secret weapon for propping up the system indefinitely.

Here’s the crux of it: SLR rules determine how much capital banks need to hold against assets like U.S. treasuries. During crises, the Fed can tweak this ratio, effectively giving banks infinite leverage. This isn’t just a theoretical power—it happened during COVID. By suspending the SLR, the Fed allowed banks to hoover up massive amounts of treasuries, stabilizing the market and keeping the government’s debt machine churning.

But here’s the kicker: Hayes warns that the next round of QE will be even bigger than COVID. With Trump’s plans to reshore supply chains and rebuild American manufacturing, the government will need trillions in financing. This is Industrial Policy on steroids—“American capitalism with Chinese characteristics,” as Hayes puts it. The Fed will again suspend the SLR, allowing banks to absorb an avalanche of debt while creating an inflationary environment that fuels nominal GDP growth.

This mechanism creates a perpetual loop. The Fed uses tools like the SLR to keep the game going, while the average person focuses on inflation and rate hikes. It’s a sleight of hand: while everyone worries about 25 basis points here or there, the Fed ensures banks can endlessly cycle liquidity, keeping society complacent in an endless ebb and flow of boom and bust.

As Hayes points out, this playbook ensures the rich get richer while the common man bears the brunt. But there’s a way out: Bitcoin. In a world where the Fed manipulates everything, Bitcoin stands as a decentralized, finite asset immune to their tricks. With Trump’s pro-Bitcoin stance and potential nation-state adoption, Hayes argues we could be on the brink of Bitcoin’s greatest bull run.

This time, the stakes are even higher. The game may be fixed, but Bitcoin could be the ultimate tool for freedom. Buckle up. This QE is going to be bigger than anything we’ve ever seen—and Bitcoin is the lifeboat.

CRYPTO RESET
Charles Hoskinson as a Key Player in U.S. Crypto Policy? The Irony Is Real

Rumors are swirling that Cardano creator Charles Hoskinson could be tapped for a pivotal role in shaping U.S. digital currency policy under the Trump administration. Love him or hate him, you can’t deny that Hoskinson is absurdly qualified for such a position. Yet, here’s where things get deliciously ironic: the crypto community, notorious for its disdain toward Hoskinson, may soon find him at the helm of regulations that could shape the future of the entire industry.

Why all the hostility toward Charles? In his own words, it's because he didn’t serve up “pozionomics” for venture capitalists. Translation: no shady tokenomics for VCs to cash out and leave retail investors holding the bag. Hoskinson has always prioritized sustainability and real-world use cases over get rich quick schemes. And while that stance has earned him a fair share of enemies in the crypto world, it’s exactly why the Trump administration might find him appealing.

Hoskinson has already represented the industry before Congress, and his track record speaks volumes. He’s pushing for clear, fair regulations that don’t stifle innovation but also don’t let bad actors run wild. In the current political climate, such balanced oversight could be a game changer. Hoskinson believes this is the best shot the crypto industry has ever had at achieving legal clarity, which could unlock massive growth and innovation.

If this appointment comes to pass, the crypto community will face a fascinating dilemma: rally behind a figure they’ve long dismissed or risk being sidelined in critical policy discussions. Either way, it’s becoming clear that the next U.S. president’s stance on crypto could define not just the industry’s future but the nation’s economic trajectory. Funny how things work out, isn’t it?

Oh and by the way, the mere rumor that this may become reality has shot the price of Cardano’s native token (ADA) up a whopping 80% in last 7 days. I can’t help to speculate what the price of ADA will reach if Charles gets the nod.
So much for all that Cardano bashing huh? 😎💰

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.