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In our Friday articles, we take a deep dive into the current state of Bitcoin. Every Friday we will continue to publish brief State of Bitcoin newsletters to keep subscribers up to date on news from the Bitcoin industry. For full disclosure, Brandon is a strong believer in Bitcoin and has allocated portions of his portfolios to BTC (HODL baby).
Top stories from the week:
FTX and Sam Bankman-Fried Scandal: Where to even start? First CZ founder of Binance was tweeting that there’s issues with FTX and was a major bag holder of the FTX token which he believed was overvalued (I also believe it was overvalued because it was worth more than nothing) and sold a major stake in FTT. This sent a frenzy for FTX users having $6 billion removed from the platform in 72 hours. This caused FTX to stop withdrawals from the European/Non-American FTX leg. This is a big issue because these branches of FTX are not regulated therefore these people may never receive their funds. Scam Bankman Fraud (wow, got him real good) scammed everyone by creating his own token and taking loans against those tokens. This story just keeps evolving as more and more players were involved with FTX. The MLB’s main crypto sponsor was FTX, the Miami Heat’s basketball arena is sponsored by FTX, Tom Brady and Gisele were in commercials and sponsored by FTX as well as were in a $680 million raise, and many more celebrities were involved with FTX. At this point I would not be surprised if this brings SBF to jail in whatever jurisdiction he is convicted in and there are some outlying effects that could really hurt the overall Bitcoin industry in the short term.
Bitcoin price crashes to $16.5k: I’ve been talking about this on a lot of mediums, not because I care about price for my own personal gain but because price affects a lot of the industries around Bitcoin, specifically mining. Bitcoin miners have been struggling and a lot have already gone bankrupt or have not been able to pay loans. This can hurt an industry that is already bleeding. I ran a poll on Twitter to see Over/Under 4.5 Bitcoin mining companies failing by the end of the year and consensus was the over. Usually I love betting the overs, but not in this scenario. Miners need cheap energy and an elevated price in order to profit and this is simply not it.
Mallers talks Bitcoin with Dave Portnoy: Jack Mallers, founder of Strike, got on a live stream with Barstool Sports founder Dave Portnoy speaking about the FTX debacle. FTX sponsored Barstool at one point in time, but Portnoy claims he never bought Bitcoin through FTX. Mallers breaks down the scandal very well and makes a case for Bitcoin and Bitcoin only. This is big simply because of the audience Portnoy has built over the years. Hopefully around this FUD in the Bitcoin space, Mallers was able to get through to some of the Bitcoin doubters.
CPI Print at 7.7%: The clown world lives on. The expected CPI inflation print was 7.9% and the FED beat expectations by 0.2% and the market rallied. This is insane because the target is usually 2% and the FED is 5.2% off of that target but the market is reacting positively. The Fed is working on destroying the offshore dollar market which Phil Gibson has been detailing in his and guest writing on my newsletter and it seems like they are successful so far. This will continue and inflation will probably slowly go down but the Fed will move the bar to 4% every year. At least this is my theory. We’ll see. Either way, this is not a great situation as inflation and taxation is silent stealer of wealth.
A quick look on chain:
Current price: $17,571
Market Cap: $337.4B
Spent Output Profit Ratio: 0.9880
Current block height: 762451
Mean block interval: 9min. 42sec.
Meme of the Week
What would the BTC community do without memes? Every week on State of Bitcoin, we feature our favorite meme of the previous week. If you create or see a meme that you like and want us to consider featuring it, tag us on Twitter or instagram (both @Greencandleit)! This week we’re featuring a meme we came across on the @believethehype page:
Video Version!
For our complete rip, check us out on the pod:
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Happy Friday everyone - get after it this weekend!
Brandon
Disclosure: The authors of this writing hold positions in cryptocurrency mentioned in this article. That cryptocurrency is Bitcoin. The article was written by Brandon Keys and occasionally a guest writer; it expresses the author's own opinions. They are not receiving compensation for it. The information presented in this article is for informational purposes only and in no way should be construed as financial advice or recommendation to buy or sell any stock or cryptocurrency. None of the authors of this article are financial advisors. I encourage all readers to do further research and do your own due diligence before making any investments.
https://finiche.substack.com/p/flash-market-update-bitcoin-tanks