Col Jung
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4 Reasons Why #CryptoHas Exploded in 2023

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4 reasons why crypto has exploded in 2023.

๐Ÿงต

1/ Since Jan 1:

- Crypto market cap is up 28% to 960B. - BTC is up 28% to 21,200. - ETH is up 34% to 1,600. - SOL is up 200% to 24 !!

Why? ๐Ÿค”

2/ Reason 1: good inflation numbers.

The CPI for Dec 2022 fell to 6.5% (year-on-year).

JP Morgan's trading desk expected anything less than 6.6% to be bullish for markets. We got that.

3/ There's more.

Consumer prices fell 0.1% in the month of December.

In other words, we got DEFLATION.

We haven't seen a MoM deflation of 0.1% since Q2 2020, when the world locked down for COVID-19.

4/ But that's not all!

Here's the real magic:

If you add the MoM numbers together, we saw consumer prices rise roughly 1% over the past 6 months.

IF this keeps up for another 6 months, we get a yearly CPI of ~2%, which is actually the US Fed's target!

Magic. ๐Ÿ˜‚๐Ÿป

5/ Reason 2: FTX recovers 5B in cash and liquid crypto.

Incredible as many investors/VCs had written off their entire holdings to zero ๐Ÿ’€

Great news for investors, VCs & crypto projects. ๐Ÿ’ฐ

Initially, it was thought FTX only had 1B in liquid assets:

6/ Reason 3: Confidence in Grayscale and DCG?

Since Dec 28, the discount for Grayscale's BTC shares (almost 50% off!) have rapidly gone down.

Even Morgan Stanley is buying.

Genesis (owned by DCG) still owes creditors 3B, but maybe the big fish knows something we don't...๐Ÿคท๐Ÿปโ€โ™‚๏ธ

7/ Reason 4: Relief from Mt. Gox sell-side pressure.

Liquidators just pushed back the deadline for creditors to decide how they want to be paid.

i.e. Gox users dumping up to ~137,000 BTC on the open market (bought for less than 500!) is now a can kicked down the road...๐Ÿ˜…

8/ Is the bear market over? ๐Ÿ‘€

Not according to historically reliable economic indicators, e.g. US bond spreads.

Still, some good short-term trading opportunities for sure.

See my YouTube video from yesterday. NFA.

3 Reasons Why Crypto is Exploding -- Is the Bull Market Back?

9/ Shoutout to @Stepnofficial for giving me the incentive to get outside for a walk every day and earn crypto.

Made a good ~40 GMT while brainstorming this thread! ๐Ÿป๐Ÿ˜€

This post is based on this twitter thread.

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