Crypto Newsletter June '24
Bitcoin action, Ethereum ETF's and bringing back the Crypto Investing Club
This newsletter covers current headlines within the crypto space, my opinion on them and projects & people I find interesting. Also included is information about important crypto community events both locally & globally. Opinions shared within the newsletter are my own and do not constitute investment advice.
Howdy crypto-heads! There’s a new crypto ETF for Ethereum and it’s now relatively safe from the SEC, however, it’s still unknown how staked Ethereum and other second order $ETH instruments will be regulated.
Here’s what I’ll be covering in this edition of the newsletter:
Bitcoin Pump
Ethereum ETF Approval
Crypto Investing Club Invite
Every day crypto scammers are getting more and more sophisticated, making personal cybersecurity and crypto self-custody more important than ever. Properly done, the right tools and strategies allow you to sleep easy and make sure your crypto is always right where you left it!
If you are anxious about losing control of your cryptocurrency or just want to learn best practices for keeping your crypto safe, please ask me about setting up a secure HomeBase® to serve as your solid foundation when exploring the cryptosphere.
1. Bitcoin Punches Over $71k
In late May the number one corn looked to be breaking up and out again as it powered over $71k USD. Unfortunately it got rejected and for the last few weeks it’s been a battle for Bitcoin to maintain high 60’s/low 70’s in price.
Looking at the chart for the past few days though paints a more positive picture. With a spike in volume corresponding to a climb into the 70’s, the momentum for BTC is uptrending and seems likely to continue. A switch from negative to positive on the MACD and a nice reset down to 47 and subsequent climb into the 70’s on the RSI adds to my confidence for a positive continuation, at least in the short term.
If we continue to head up (I give it a 70% chance) I’ll be watching for some serious volatility after we cross the ATH at $73k and resistances at $80k, $87k and the psychological level of $100k for trading opportunities.
On the downside, there is still major support at $57k (the most recent reversal price) and the journey to get there shows some smaller support at $67k and $62k. If we really punch down though I’ll be watching to see what happens at $50k as it seems unlikely we go below that price without some seriously negative news or events. Good luck!
2. Ethereum ETF Effects
In a surprise move that became obvious only a few days prior to the announcement, the SEC approved spot Ethereum ETF’s from multiple companies. The approval sparked a rally in price of 33% as $ETH ran up to almost $4,000 and so far it’s holding strong with just a small pullback as of this writing.
Not included in the SEC’s decision was how staked Ethereum would be treated. All we know is that it was not included in the spot ETF proposals, so there is a chance the SEC could still consider it a security.
Staked Ethereum is going to be tough to regulate as you earn a “dividend” for holding ETH. Complicating things further is the fact staked Ethereum has been tokenized by projects that allow you to park your Ethereum in their protocol.
For example, if I send 1 ETH to the Lido staking smart contract, it leaves my wallet and they give me 1 stETH in return. I can then use the stETH like any other token on the EVM (Ethereum Virtual Machine), including selling it for a price that is usually very close to Ethereum. The person who buys my stETH can then go back to Lido and give them my stETH and receive my original 1 Ethereum while also earning interest from the staked Ethereum.
While it’s unclear how the staking component of Ethereum will be handled by the SEC, the native version seems safe from regulators for the time being. Additionally, it appears that investor confidence in the longevity of Ethereum has gone up significantly as shown by the big gains in the BTC/ETH market pairings.
3. Crypto Investing Club New Schedule
I’ve decided to ramp up the Denver Crypto Group meetings to twice a month, with one being a hybrid in-person/zoom meeting and the other being entirely virtual.
I have also updated the website (www.DenverCryptoGroup.com) with an events page where you can RSVP to any upcoming meetings that the DCG is promoting.
The focus of the meetings will be on investing in cryptocurrency and each meeting we’ll review exciting projects and vet them using the DCG’s 5 Crypto Criteria.
They are free to attend and everyone is invited to share about a project or ask questions to help you on your crypto journey.
The next Investing Club meeting will be:
Tuesday, June 11th from 6:50 PM to 8:30 PM MDT
In-Person - Eloise May Library, 1471 S Parker Rd, Denver, CO 80231
Remote - Zoom, https://us02web.zoom.us/j/89219310319?pwd=NHZNaTYxU09HZm0xWEJKRHVuL1k3QT09
Social Media
If you’ve attended my meetups then it’s likely you heard me complain about how much I despise social media. However, I want to grow the DCG into something more than just a loose collection of crypto enthusiasts and to do this I need to promote just how awesome and helpful our community is.
To this end I’ve created a TikTok account (@denver_crypto) and will posting short videos there and on twitter. Please support my efforts (this social media stuff is hard, at least for me :) and comment, follow and engage with the posts as much as you can, I really appreciate it!
That’s it for this edition, stay happy and healthy and I’ll catch you soon!
Much Love,
~Matt