GM Brew Crew, the sight of big green candles yesterday officially poked the bears in hibernation. Are we waking up from a long crypto winter’s nap or is this a classic tease like the blonde bartender making eye contact with you right before you get slipped the receipt? (May have happened with a barista this morning too, but we won’t get into it 😔) Let’s dive in! ⬇️

On the menu today:

• IS THE “GREAT ACCUMULATION OF BITCOIN” UPON US? 👀

• FEDERAL RESERVE CHAIR SPEAKS ON CRYPTO 🧐

• BTC SHOOTS TO $138K ON BINANCE 🔫

Today’s Charts:

IS THE “GREAT ACCUMULATION OF BITCOIN” UPON US? 👀

As Bitcoin pumped past 30k yesterday, a number of major leaders in the crypto space gave their thoughts on this unique window of opportunity. 

First and foremost, there have been 5 Bitcoin ETF applications in the past 5 days. These include applications from BlackRock, Fidelity, Invesco, Wisdom Tree, and Valkyrie. Maybe the Brew Crew should toss in an app and see what happens?

Cameron Winklevoss, co-founder of the crypto exchange Gemini, compared buying Bitcoin before the release of these ETFs to a pre-Initial Public Offering (IPO) purchase, emphasizing the significance of early investment.

Anthony Pompliano, a prominent crypto investor, stated on an interview with CNBC yesterday that “we have institutions and individuals scrambling to try to get their share of the 21 million Bitcoin that will ever be in existence.”

Now is an appropriate time to tell you… DO YOUR OWN RESEARCH!

FEDERAL RESERVE CHAIR SPEAKS ON CRYPTO 🧐

Jerome Powell, the chair of the Federal Reserve, appeared before the House Financial Services Committee during a semi-annual hearing. The conversation quickly shifted towards the topic of digital assets. 

As the Brew Crew sat in the back row casually sipping our morning roasts, here’s what we took away from the convo:

Powell discussed various aspects of the digital asset industry, including stablecoins, their role as a form of money, and the need for central bank regulation.

During the conversation, Powell said “we do see stablecoins as a form of money, and in all advanced economies, the ultimate source of credibility in money is the central bank.”

When asked about the staying power of the crypto asset class in this economy, Powell responded, “it appears to have some staying power.” Tell us how you really feel Mr. Powell. 😏

BTC SHOOTS TO $138K ON BINANCE 🔫

According to exchange data, there was a sudden price spike on the btc/tether trading pair, causing Bitcoin to briefly soar to $138,000 on the Binance.US crypto exchange yesterday.

At 6:50 a.m. UTC, prices quickly surged to the sky high (what a film!) levels for a brief moment before promptly returning to the same value as other Bitcoin spot markets. Trading pairs for Bitcoin, apart from the btc/tether pair, continued to trade normally. (Binance must’ve decided they weren’t taking up enough headlines… 🙄)

The unusual price spike likely resulted from low liquidity in the bitcoin/tether pair on Binance.US . Market data shows that a $400,000 Bitcoin buy on this pair can increase prices by 2%, compared to a minimum of $842,000 on the bitcoin/USD pair.

Binance.US has experienced a significant drop in market depth (referring to lvl of liquidity in a fin mkt 📉) , decreasing by 76% compared to May. This decline indicates a departure of market makers and traders from the exchange. (Rumor has it the only thing becoming more liquid is their once joyful expression: 🫠)

Special Blend: Morning Meme Roast

As the CryptoBrew Daily comes to a close, we invite you to join us on Twitter for more crypto chat. Think of it as a chill gathering of like-minded folks, minus Chad talking about his 1-rep deadlift max and your tipsy uncle who always shares TMI stories. Let’s keep the crypto conversation going!

***DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and is not intended to be construed as financial advice or a solicitation to buy or sell any assets. We urge you to exercise caution and conduct your own research before making any financial decisions.