🏁 It's ETF Deadline Week and Alts Continue to Bleed

Good Morning from the Promptbox Team!

This is one of the most important weeks in Bitcoin’s history - as institutions finally give it the green light (and tradfi liquidity) that maxi’s have been begging for for years.

But, there’s also a 10% 5% chance that the entire market sees a black swan event, dragging alts down another 60%+ - costing early retail billions in losses. (see image)

… and the degen pieces of shit that most of us are wouldn’t have it any other way.

So how do you make money on all of this?
We’ll get to that.

It’s January 8th. Let’s get it.

TODAY’S UNBOXING

• READ: Could an $XRP ETF be Next?

• BIG STORY: Gensler Says “No Go to FOMO”

• Japan’s Mercari Offers BTC Payments + other crypto stories

• Market in the Morning (Bubble Edition)

• What Am I Buying/Selling?

• Reader Request: Cosmos (ATOM)

  
  

The potential launch of a Ripple (XRP) exchange-traded fund (ETF) is garnering significant attention.

Crypto influencer Jack The Rippler has sparked discussions about Fidelity's possible entry into this market, following the trend set by Bitcoin ETFs. This move could mark a pivotal moment for Ripple, especially considering its price surge in 2023 and the current landscape of crypto investments.

Key Facts:

• Fidelity's Ripple ETF Plans: Crypto influencer Jack The Rippler indicates that Fidelity might soon launch a Ripple (XRP) Exchange-Traded Fund (ETF).

• Previous Price Movements: XRP's price spiked by 10% following rumors in 2023 about BlackRock filing an application for an XRP-based institutional product.

• Influence of Bitcoin ETF Decisions: The SEC's verdict on Bitcoin ETFs is anticipated to set a precedent for other digital assets like XRP.

• Market Cap Increase Predictions: Analysts predict that the approval of a spot Bitcoin ETF could add $1.5 trillion to the overall crypto market cap. Such approval could result in $5 billion in inflows in the first quarter and $10 billion in the second quarter of 2024.

• Ripple vs. SEC: An application for a spot XRP ETF might reignite discussions about XRP's price manipulation and the SEC's previous legal battle with Ripple Labs.

The speculation around a Ripple ETF is more than just market buzz; it represents the evolving acceptance and integration of cryptocurrencies into mainstream finance.

As the industry awaits the SEC's decisions on various crypto ETFs, including the potential XRP ETF, the outcome could redefine investment strategies and boost the legitimacy of digital assets, including Ripple, in the eyes of institutional and retail investors alike.

Take a look at the full story below.

My Take:

Despite the excitement surrounding the potential announcement of a Ripple (XRP) ETF, I remain skeptical about its ability to create a lasting impact on XRP's price. This skepticism is rooted in several key observations:

1. Post-Lawsuit Price Reaction: The pattern observed after Ripple's victory against the SEC is telling. While there was an initial price surge, it quickly reverted back to its usual range. This pattern undermines the theory that legal victories would catapult XRP to unprecedented heights.

2. Impact of Major Holders: The behavior of XRP's largest bag holders adds another layer of resistance. Their history of selling has suppressed the price for years.. This continual 'dumping' creates a situation where any positive price movement can be quickly offset by these large sales, preventing sustained growth.

3. Ongoing Legal Uncertainties: Lastly, the legal battles involving Ripple are not entirely concluded. The possibility of appeals looms large, casting a shadow of uncertainty over the future of XRP. This unresolved legal situation could deter the SEC from approving an XRP ETF, as regulatory bodies typically avoid entanglement with assets embroiled in legal disputes.

SEC Warns Against FOMO as Investors Await Spot Bitcoin ETF Approval

Their announcement says ‘NO GO to FOMO,’ as Gensler warns not to buy the dip.
If there was ever a signal to buy - that’s it.

Can you imagine being such a massive piece of shit as this guy.

• Breez announces FiatLink - a Lightning Network to Fiat API Standard. Allowing seamless integration of multiple brokerage options inside a Lightning application or wallet.
  

• Bitcoin price rises above $45k ahead of potential ETFs. Target is $48k - $50k by end of week when approved.
  

• Grayscale announces 1.5% fees for their ETF. Down from the initial 2% there looks to be a fee war coming between issuers.
  

• $Bonk falls 70% from all-time high as memecoin demand on Solana plummets. [Kevin’s Note] Same thing happened to Shib this time last cycle - then it shot up to a $30B mcap.
  

• Solana rug pull has begun. Click bait title by known bear Max Keiser - but is he right?
  

• Bitcoin ETF approval odds raised to 95%. SEC takes the loss or risks multiple lawsuits and an eventual court-forced approval hurting Gensler’s post-SEC prospects.
  

• Cathie Wood’s Ark Invest offloaded another $20M worth of Coinbase shares. This follows a $29M sale earlier last week.
  

• Japan’s Mercari e-commerce marketplace to support Bitcoin payments. Japan’s new tax laws now favor companies holding crypto.
  
  

  
  
  

What Am I Buying?

Not Financial Advice

New, ecosystem plays - not Bork or Bonk or CatCoq Inu.

I’ve been rotating out of my older Top 20 coins such as MATIC, ADA, XRP, DOT, etc. into newer ecosystems such as SEI.

Why? Bag holders.

Projects from the last run have holders that bought at the pico top and have been itching for 2+ years to sell at their break even point.

Every time there is a dump like this one it scrambles their brain.
They were so close to their number and then MATIC dumps 30% in 2 days.

Newer plays just don’t have the PTSD and trauma of the last cycle so moonbois can still dream of those 100x gains.

*I’m probably going to start building a bag of $Bonk at these levels.

What am I selling? Nothing

This pre-ETF announcement dump is a classic shakeout and anyone selling at these levels is a fool.

Reader Request: Cosmos (ATOM)
Just flipped bearish on the 1D but remains bullish on the weekly.

Depending on what timeframe you trade on, there could be a buying opportunity as it looks oversold but I’d wait to see.

If you’re DCA’ing for a long term hold now’s the time to keep adding.

If you want me to drop a chart in an upcoming issue send me an email at [email protected] 

If you have anything interesting to share, question to ask, or want to reach out, shoot us an email at [email protected]

Looking to sponsor?
We haven’t opened up sponsoring opportunities yet, but to get notifications, email [email protected]