💊 Is the bull market back on? 📈
Welcome to Web3 pills, the daily crypto newsletter that is here to tell you that we are so back!
Here are your 💊’s for today:
Is the bull market back on?
Young people want crypto exposure in 401(k)s
NFT of the day
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IS THE BULL MARKET BACK ON?
I must admit that this was somewhat of a clickbait title, as it’s likely too early to say for certain that the crypto bull market is back on.
However, there’s denying that we are at the very least in the midst of an epic short squeeze.
Over the last 24 hours, we’ve seen BTC pump up 6.9% and ETH pump up 13.9%! These are tremendous moves for assets at their market cap, and the pump has been enough to bring the total crypto market cap back above $1 trillion.
While many on crypto twitter have been ecstatic about this move, there are a different subset of people that are unhappy.
According to CoinDesk, crypto markets saw “$700 million in liquidations on short trades” in the aftermath of this move upwards. This is a level of short squeeze liquidations that has not been seen since July 2021.
As a reminder, liquidations occur when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin.
The fact that these liquidations happened on short squeezes meant that the people impacted were betting that crypto prices were going to go down in the future.
As for what comes next in the crypto markets is anybody’s guess. Most tokens are still down 60-90% from all time highs, and many of the external factors such as interest rates, war in Ukraine, etc. have not turned around yet.
All we can do at this point, is enjoy this pump while it lasts.
YOUNG PEOPLE WANT CRYPTO EXPOSURE IN 401(k)s
A recent study by Charles Schwab found that 46% of Gen Z workers and 45% of millennials said that they wish they could invest in crypto via their 401(k)s.
This is another signal of a generational trend in which people are moving away from historically popular asset classes such as individual stocks and mutual funds, into new digital asset classes such as cryptocurrencies.
As a result of this rising demand for cryptocurrencies, large financial institutions have been forced to update their offerings to meet their customers needs.
For instance, Fidelity announced in April that it would allow individuals to allocate a portion of their retirement savings to Bitcoin through the company’s in-house 401(k) plan.
If we see more institutions follow Fidelity’s lead, it could help further drive the wealth transfer from other asset classes into crypto.
What I found most fascinating about this survey, was that Gen Z and Millennial interest in crypto doesn’t seem to have waned even in the face of the major market correction this year.
To me, this suggests that younger generations are taking a longer term view on crypto, and see its potential to become a much larger asset class in the future.
[The Defiant] Multichain Questioned About Management of Millions in User Funds: Bridging Platform’s Use of Escrow Accounts Come Under Scrutiny.
[CoinDesk] UK Lawmakers Vote to Recognize Crypto as Regulated Financial Instruments: The lower house of the Parliament voted in favor of adding crypto to the scope of activities to be regulated via the proposed Financial Services and Markets Bill.
[Yahoo finance] Crypto exchange Blockchain.com to issue Visa debit card: Visa is opening its payment network to another major crypto firm a day after reporting earnings that topped estimates.
NFT OF THE DAY
If you’re looking for the most influential NFT collection outside of Ethereum, look no further than the DeGods collection on Solana.
What makes DeGods stand out isn’t necessarily it’s artwork, but rather the “social experiments” they’ve ran with their collection that have had a massive influence on NFT culture.
First it was their (33.3%) tax, aka their “Paper Hands Bitch Tax,” which was charged to any holder that sold their DeGod under the floor.
Then, the DeGods team announced a few months ago their first derivatives project called y00ts, in which every DeGod holder was airdropped a mint t00b.
Then there was the recent decision by the DeGods team to drop all royalties to 0%.
The DeGods team is led by their charismatic founder Frank, who can be found on Twitter and Discord 7 days a week, at almost any hour.
Frank and the team have single-handedly helped turn Solana into a powerhouse in the NFT space, and set off major cultural changes.
Now armed with $7M in funding for their company “Dust Labs” and an army of passionate of supporters behind them, it would be a mistake to fade this team.