Trumps Assassination Fails, Markets Rally
Dear Investors,
Welcome to this week’s edition of the Myth of Money. If you would like to keep in closer touch, please reach out on X (formerly Twitter) below.
The past few weeks in the crypto markets have been tough for many of us. Some are facing significant losses, while others have been liquidated. However, there's hope on the horizon, and now is not the time to give up.
Several indicators suggest we are on the brink of seeing major gains in the coming weeks and months for those who can endure the volatility.
Firstly, the ETH ETF could be launching as soon as next week. I’ve mentioned before that this bull market will be more concentrated. Retail traders are tired of being dumped on by VCs pushing new L1s and L2s. They want to invest in coins with a solid future and a stable price floor. With the upcoming influx of ETFs and ETNs, the average crypto investor is likely to hold a mix of BTC (approved ETF), ETH (incoming ETF), SOL (incoming ETF), and STX (incoming Grayscale ETN with a strong Bitcoin-tied narrative), along with a sprinkle of meme coins to satisfy their speculative urges.
Secondly, the macroeconomic environment is working in our favor. With just four months until the election, the Biden administration is unlikely to tighten the markets further. In fact, they may take measures to stimulate the economy, such as funding initiatives like canceling student debt to improve public sentiment. Although interest rates are set by an independent Federal Reserve, they might be reduced in alignment with this administration's goals, potentially at the FOMC meeting in late July or September, which could spark an additional market rally.
Lastly, there is the critical question for America: who will be the next president?
While I have publicly supported Kennedy, my personal opinion is not what matters. What truly counts is the will of the people, and they have made it clear they want Trump.
This weekend, Trump survived an assassination attempt in Butler, Pennsylvania. Gunfire erupted at a Donald Trump rally on Saturday, causing panic among the crowd and spattering the Republican presidential candidate with blood. Despite the chaos, Trump emerged defiant, pumping his fist in the air before being ushered to a waiting car.
Trump grimaced and grabbed his ear as security swiftly escorted him away, his red "Make America Great Again" hat knocked off. The Secret Service and the former president's campaign confirmed that Trump was safe. Live video showed blood on Trump's right cheek and ear.
The suspected shooter was killed, as was an audience member, with another person in critical condition. The shooter's identity and motive remain unclear. Leading Republicans and Democrats quickly condemned the violence.
Ron Moose, a Trump supporter present at the rally, described the scene: "I heard about four shots, and I saw the crowd go down. Then Trump ducked real quick. The Secret Service immediately jumped in to protect him. Within a second, they were all shielding him."
Trump stood up with determination, demonstrating to the crowd that he is alive and fully prepared to lead. Shooter who tried to assassinate President Donald Trump was killed shortly after. One of the rally attendees was also killed during the shooting.
Social media exploded with pro-Trump cheers, causing the prices of major cryptocurrencies to surge. Futures in the stock markets also saw significant gains. Elon musked posted on X: “I fully endorse President Trump and hope for his rapid recovery.”
After the shooting incident, Trump's odds of victory on Polymarket have soared to an all-time high.
Meanwhile, Biden continues to make gaffes in recent appearances, mistakenly referring to President Zelensky of Ukraine as “President Putin” and Vice President Kamala Harris as “Vice President Trump.” The Democratic Party's prospects appear bleak unless they can bring in a superstar of Obama's caliber. Rumors suggest that Michelle Obama was approached but declined the offer.
The coming months may be turbulent, but overall, this is a great time to deploy capital. #NFA
This Week By the Numbers 📈
Quick Facts:
BTC ETFs see highest inflow in 5 weeks: BTC ETF sees $800m+ of inflows
ETH ETF in final stages, should launch next week
Fidelity officially files S-1 for its Spot Ethereum ETF
Staked ETH nears ATH
German state finishes selling $2.9bn BTC holding
$1.64 trillion asset manager Goldman Sachs to launch three tokenization projects this year
MakerDAO to invest $1bn in treasuries
Scaramucci’s SkyBridge limits client exits even as crypto soars
Dow rises more than 200 points, touches new record above 40,000
Nvidia leads rebound in tech stocks
Bets continue to grow on September rate cut
We won’t wait until 2% inflation to cut rates: Powell
Expect choppy price action in Q3: Coinbase
US inflation falls to 3%, lower than expectations
PPI rises more than expected: wholesale price inflation unexpectedly accelerated in June to its highest rate since March 2023
Biden attempts to broaden student loan forgiveness
Elon donates to Trump PAC
Clooney urges Biden to drop out
President Donald J. Trump to speak at Bitcoin 2024 conference in Nashville
Top Stories 🗞️
Crypto Exchange BitMEX Pleads Guilty to Violating the Bank Secrecy Act From 2015 to 2020
BitMEX has pleaded guilty to violating the Bank Secrecy Act (BSA), according to a Wednesday announcement from the U.S. Department of Justice (DOJ). According to newly published court documents, the Seychelles-based crypto exchange willfully failed to set up an adequate know-your-customer (KYC) and anti-money laundering (AML) program at the exchange between September 2015 and September 2020, when the Commodity Futures Trading Commission (CFTC) charged the exchange with offering illicit crypto derivative trading services to U.S. customers and the DOJ charged four of the exchange’s employees with violating the BSA. Until September 2020, BitMEX allowed customers to register and trade cryptocurrency basically anonymously, without providing any identifying information or documentation, and advertised itself as a place where retail customers could trade without real-name verification, the DOJ alleged. Because of the lax AML/KYC standards, prosecutors say, BitMEX became a destination for money laundering and sanctions violations.
Crypto Market Rebound Expected in August, Liquidations to Finish by July-End: JPMorgan
Crypto liquidations should abate this month and the market is expected to rebound from August onward, JPMorgan (JPM) said in a research report on Wednesday. The bank reduced its year-to-date crypto net flow estimate to $8 billion from $12 billion previously. The Wall Street firm said it was skeptical that the prior estimate of $12 billion would continue for the rest of the year given how high bitcoin (BTC) was relative to its production cost or relative to the price of gold, the report said. This decline in reserves is likely a reflection of bitcoin liquidations by creditors of Gemini or defunct crypto exchange Mt. Gox, or selling by the German government, which has been offloading crypto that it seized from criminal activities, the bank said.
Fed Might Focus on Weakening Labor Market Rather Than Inflation as It Mulls Rate Cuts: Economists
Markets, including crypto, briefly rose after Thursday’s Consumer Price Index (CPI) report which showed that prices cooled more than expected in June, spurring hope among traders that the Federal Reserve could indeed cut interest rates this year. Even though Friday’s less-closely watched Producer Price Index (PPI) data came in hotter than expected, traders remained confident that the central bank will cut rates in September. Odds for that are currently just under 95%, according to CME’s Fed Watch tool. The Fed has a dual mandate – to keep prices stable while also promoting maximum employment. A weakening labor market might thus force the Fed to begin easing monetary policy well before inflation returns to its 2% target (June's CPI data showed inflation rising at a 3% year-over-year pace).
SEC Drops Investigation of Bitcoin L2 Stacks and Builder Hiro
The U.S. Securities and Exchange Commission dropped a three-year-old investigation into Hiro Systems, a blockchain software developer (formerly known as Blockstack) that raised $70 million in token sales from 2017 to 2019, according to a Friday filing. The probe's conclusion is another win for the crypto industry in its years-long struggle with the regulator and follows news, reported by Fortune earlier this week, that the agency had ended an investigation into stablecoin issuer Paxos. Hiro makes tools for developers to build apps on Stacks, a layer-2 blockchain that supplements Bitcoin. Stacks is the brainchild of crypto industry veteran Muneeb Ali, who is now CEO of Trust Machines, another builder in the ecosystem, and a board member at Hiro.
Apple reaches deal with EU regulators to open up mobile payments system to rivals
EU antitrust regulators on Thursday accepted commitments from Apple to allow access to its tap-and-go payments technology to rivals, bringing an end to a four-year investigation. The EU formally launched an investigation relating to Apple Pay in 2020. The probe looked at the terms and conditions Apple sets for integrating Apple Pay in apps and websites as well as concerns around the tap-and-go technology and alleged refusals of accessing Apple Pay. In 2022 the European Commission found that Apple Pay could restrict competition as it was the only option for iPhone users. Apple has since suggested several commitments to address the concerns and in January it offered to give its rivals access to its contactless payment and mobile wallet technology.
Thank you for reading this week’s edition of the Myth of Money.🚀
Were you forwarded this email? Subscribe below.
Until next week,
Tatiana Koffman
About the Author: Tatiana Koffman
Hi there and thanks for reading! If you stumble upon my newsletter, you will notice that I write about money, economics, and technology. I hold a JD/MBA and spent my career in Capital Markets working across Mergers & Acquisitions, Derivatives, Venture Capital, and Cryptocurrencies. I write to make financial topics more accessible and create equal opportunity for the next generation of investors. I have personally invested in 20+ companies and funds (👉 my portfolio).