$50k BTC at High Riskc

Mr. GoBrr
February 13, 2024 • Reading Time:5 minutes

GM. Today on Money Printer Go Brrr newsletter:

On-chain indicators suggest the Bitcoin market is now ‘high risk’ 😯
Stablecoins: stable or not stable?
Ordinals: good or bad for Bitcoin?

Top Crypto Gainers (24h)

Top 10 Crypto gainers (24h). Click on image for more details.

On-chain indicators suggest the Bitcoin market is now ‘high risk’ 😯

After the challenging recovery since the FTX collapse, this indicator has advanced to 2.06, entering the High Risk🟧regime.
These levels are typically seen during the early stages of bull markets, as long-term investors return to a relatively meaningful level of profitability.
— glassnode (@glassnode)
2:34 PM • Feb 9, 2024

Bitcoin's dancing in the "high-risk" zone now, says on-chain analytics firm Glassnode. 🎉

Looks like we might be on the edge of a Bitcoin bull market party. You know, when the prices start jumping up aka money printer go brrr.

What indicators suggest?

⇾ Glassnode's got these cool tools that peek into Bitcoin's real value, and guess what?

⇾ ❤️‍🩹 Bitcoin might be overvalued compared to its real worth

⇾ 7/10 indicators scream "watch out!" because they're in the high-risk area

⇾ some investors haven't seen much real profit, even tho the price has been climbing

Why does it matter?

ETFs are like magnets for cash right now
Grayscale's Bitcoin Trust is seeing fewer folks pulling out their money, which is kinda cool
volatility is coming;

Lowest outflow day yet for $GBTC -- $51.8 million
— James Seyffart (@JSeyff)
11:46 PM • Feb 9, 2024

It's a heads-up for crypto adventurers to buckle up their seatbelts because the rollercoaster might just do a loop-de-loop. 🎢

Dive deeper into the Glassnode’s report here 👉 https://insights.glassnode.com/assessing-risk-in-a-bitcoin-bull/

Stablecoins: stable or not stable?

NEW ZEALAND CENTRAL BANK SLAMS STABLECOINS - “NOT STABLE” AT ALL
“Stablecoins are not stable. They are only as good as the balance sheet of the person offering that stablecoin.”
- Adrian Orr, the governor of New Zealand’s central bank, has issued a savage criticism of the… twitter.com/i/web/status/1…
— BSCN (@BSCNews)
11:27 AM • Feb 12, 2024

Stablecoins are playing this game, to be or not be… stable.

Adrian Orr, New Zealand's central banking boss, dropped a truth bomb: stablecoins might not be your rock in a storm.

They wobble if 👉 the company behind them wobbles.

Some stablecoins recently played a game of "how low can you go?" – dipping below their pegs – and that’s TrueUSD (concerns about redeeming stablecoins for fiat).

💡 A list of stablecoins that lost their peg:

USDC – cash reserves were held at a collapsing bank
USDT – exposure to troubled entities like Celsius
TerraUSD – algorithmic failures & lack of over-collateralization

Are there any other kinds of stablecoins? – Yes:

Fiat-collateralized – centralized
Asset-backed – centralized – like precious metals, oil, real estate
Crypto-collateralized – decentralized
Non-collateralized – decentralized – rely on complex mathematical algorithms – quite experimental)

You should know this:

FTX fiesta made USDT lose its page

USDC depeg event impacted other stablecoins as well, with Binance USD (BUSD) and Maker DAO’s DAI also falling below $1

UST, Terra's stablecoin, collapse caused a $20B value wipeout, triggering USDT redemptions and a temporary price drop below $1.

👉 Remember, if you’re one of the ~7M stablecoin holders, it’s important to track important crypto events. As they might have a direct or indirect impact on your bags.

Ordinals: good or bad for Bitcoin?

Folks over at Binance have been noodling around and reckon that these ordinals thingies might just give Bitcoin a whole new vibe.

You remember what Ordinals were, right? ⇾ imagine sticking your favorite meme or a cute cat video onto a teeny tiny slice (satoshi) of a Bitcoin.

💡 Ordinals

⇾ a means of creating Bitcoin NFTs by attaching data (images, videos, etc) to an individual satoshi,

⇾ the process is called inscribing.

The battle ⚔️

The good – This new use is bringing more developers and fresh ideas to Bitcoin:

⇾ inscriptions & BRC-20s (tokens on BTC) have catalyzed activity within the Bitcoin ecosystem, attracting new talent & accelerating innovation;

⇾ huge influx of money into Bitcoin through inscriptions and BRC20 tokens;

⇾ expanding Bitcoin’s use cases;

VS 🤺

The bad – Some people think these changes don't fit with Bitcoin's original purpose:

⇾ network congestion and high transaction fees, users paid hundreds of $

⇾ inscriptions detract from Bitcoin’s primary role as “hard” (hard to create) money & raise concerns about scalability & network security budget.

Read the full report made by Binance at 👉 https://www.binance.com/en/research/analysis/navigating-the-inscriptions-landscape

💭What do you think about inscriptions? Are they good or bad for the Bitcoin ecosystem?