Welcome to our #110 weekly newsletter.
“For women taking control of their financial future”
-Jana Hlistova
From The Purse
In this week’s newsletter, we focus on bitcoin and ether.
In a note written by Bloomberg analysts, ether is ‘massively undervalued’ and bitcoin is heading to $100,000. They claim that the ‘war is enhancing bitcoin's value as a global digital-reserve asset, while ethereum evolves into the collateral of the internet.’
***
You can review the news in brief so you stay on top of global financial, economic and investing trends.
I hope you enjoy this week’s newsletter.
Until next week,
Jana
Ether is ‘massively undervalued’ and Bitcoin heading to $100,000, according to Bloomberg
Market analysts from Bloomberg Intelligence indicate a bullish sentiment.
Bitcoin and ether are outperforming most assets, as per Bloomberg Intelligence/Coin MarketCap. And this is at a time when central banks are reducing money printing (QE) and raising interest rates.
And according to Bloomberg Intelligence, Russia's invasion of Ukraine marks ‘another milestone for the merits of cryptos.’
Analysts Mike McGlone and Jamie Douglas Coutts claim that the ‘war is enhancing bitcoin's value as a global digital-reserve asset, while Ethereum evolves into the collateral of the internet.’
Whilst cryptocurrencies were exposed to volatility at the start of this year, ‘the war and disruption in markets like nickel is adding to the narrative that Bitcoin is the most fluid, 24/7 global trading vehicle in history and well on its way to becoming digital collateral’.
Bloomberg Intelligence also claims that it is just a matter of time before the price of bitcoin is $100,000 due to its limited supply (21m units only).
(Investors such as Cathie Wood, predict the bitcoin price to be $500,000 within 5 years and others expect bitcoin price to hit $1m+ by 2030).
Since Russia invaded Ukraine, bitcoin has gone up by 20%, which is double the gains of crude oil.
According to McGlone and Coutts, gold’s poor performance during the invasion indicates ‘the diminishing use of the old-guard analog collateral versus the digital upstart.’
And they consider ether to be undervalued ahead of the merge between the network's Proof-of-Work and Proof-of-Stake blockchains (expected to complete this summer).
They suggest that ether should be valued at $6,100, up 70% from current levels. (Investors such as James Wang, who is ex analyst from Ark Invest predict the ether price to be $150,000 by 2023).
Ether, like bitcoin, is becoming a deflationary asset. As per the note:
‘The upcoming merge, shifting ethereum from a Proof-of-Work model to Proof-of-Stake, will convert ether into an equity-like instrument with elegant supply/demand dynamics that could drive significant interest in the asset.’
As long as adoption and demand for ether and bitcoin continues, the price will go up.
What next? Read:
(Re) read Women: why NOT investing is risky
(Re) read: Women: why invest in crypto
News in Brief
Financial news
Global bond rout deepens with US 10 year yields jump to 2.72%, German 10 year yields rise to 0.72% sparked by aggressive Fed rate hike fears. Goldman’s Hatzius sees chance Fed may need to hike rates past 4%.
The Pound weakens under $1.30 for first time since November 2020.
Russia’s Ruble recovers to pre-war levels even as sanctions pile up and default is looming. Foreign oil and gas buyers offer Putin’s government a lifeline.
Commodities could surge by as much 40% (far into record territory) if investors boost their allocation to raw materials at a time of rising inflation, JPMorgan says. Raw materials hit record last month following Ukraine invasion.
The European Central Bank (ECB) balance sheet hit another ATH at €8,754bn. Total assets rose by another €43.4bn mainly driven by the quarterly revaluation of #Gold reserves. ECB balance sheet now equal to 83% of Eurozone GDP vs Fed's 37% and BoJ's 136%.
ECB introduces a new word into the eco lexicon in the latest minutes - not ‘stagflation’, but instead ‘slowflation’, meaning positive GDP growth, which is losing momentum & at the same time inflation.
Peter Thiel says a ‘finance gerontocracy’ — Warren Buffett, Jamie Dimon and Larry Fink — is keeping Bitcoin from reaching $100,000. Billionaire calls Berkshire CEO a ‘sociopathic grandpa.’
Crypto: bitcoin, ethereum, DeFi & NFTs
Bitcoin and ether fall (4% & 7% respectively) as the Fed moves to shrink the balance sheet by $95bn a month and increase interest rates. (See the current bitcoin & ether price).
MicroStrategy’s Michael Saylor and ARK Invest's Cathie Wood aren’t worried about bitcoin and regulation.
Bitcoin is Robinhood’s top ‘buy’ asset, ethereum and dogecoin also make the top 10. There are also plans for Robinhood to integrate the Bitcoin Lightning Network into its technology stack.
Ethereum gas usage was up 13% in March from the previous month amid greater demand for block space, according to DeFi analytics firm HashEx in a note shared with CoinDesk.
Ethereum Layer 2 networks hit ‘critical mass’ as The Merge approaches.
Stealth NFT drop triggers record ether burn. Ultra Sound Money tweeted that 4,436 ETH burned over an hour. The record-breaking blocks have been attributed to a stealthy NFT drop from social media influencer and entrepreneur, Gary Vaynerchuck.
Cash App now offers 'Paid in Bitcoin' feature, 'Lightning Receive' coming soon. The company statement said: ‘Soon, customers will also be able to receive bitcoin via the Lightning Network by simply sharing your QR code or payment request. This new feature furthers Cash App’s mission to make bitcoin usable as a currency’.
Coffee Break? Read This
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.
The Purse Ltd. Copyright 2022 & All Rights Reserved.
The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.
Share this post