Stormrake take Token2049
Stormrake take Token2049
September was a month where both sides of the market were in control. Bears were dominating and looking to push BTC back below $50k early in the month, before a sharp reversal from the bulls on the anticipation of the first interest rate cut in over four years.
Token2049; Bitcoin remains king, Stormrake key takeaways:
Token2049; Bitcoin remains king, Stormrake key takeaways:
Token2049, the leading global cryptocurrency and blockchain conference that brings together industry leaders, investors, developers, and enthusiasts to discuss and shape the future of the digital asset ecosystem.
Token2049 was a showcase of the crypto industry's vibrancy, filled to the brim with new tokens, chains, infrastructure projects, and venture capitalists. Despite the influx of innovation, one sentiment was clear among attendees: there is only one Bitcoin. Bitcoin remains the king and is by far the best asset in the digital economy, outnumbering new crypto use cases in both utility and trust.
A significant trend observed at the event was the proliferation of stablecoins. Once merely handy trading pairs, stablecoins have evolved into dominant assets in their own right. They exemplify one of crypto's best use cases—seamless remittance and value transfer—highlighting the sector's growth beyond speculative trading to practical financial solutions.
The rise of memecoins and community tokens also garnered attention. This shift marks a move away from low-float, high fully diluted valuation (FDV) venture capital chains and tokens, whose traditional playbooks have been exposed. Retail investors, finding it harder to catch big wins on altcoins due to increased VC involvement, are turning to memecoins in search of significant returns.
Token2049 was heralded as one of the best-organised events in the crypto space, with every major player in attendance. The atmosphere was electric, fueled by both groundbreaking projects and lavish side events—such as SUI hiring out an entire nightclub. However, this display of wealth raised questions about funding sources, notably whether such expenditures come from marketing budgets.
Amid the excitement, a note of caution prevailed. Many interesting projects were showcased, but the prevalence of scams and "deadwood" projects was also evident. During the event, our team noticed that many of these underperforming ventures are likely to disappear over time, reinforcing the enduring value of investing in Bitcoin.
A standout highlight was FET's AI robots (DesdemonaRobot), an impressive creation believed to have been initiated by Singularity. Its advanced capabilities prompted both awe and introspection, raising profound questions about humanity's role in an increasingly AI-driven world.
In summary, Token2049 reflected an industry at a crossroads. While substantial capital continues to flow—evidenced by lavish events and aggressive funding—the crypto landscape is shifting. Venture capital has changed the game, making significant gains on altcoins rarer for retail investors. As a result, many are gravitating towards memecoins and community tokens. Amid these changes, the enduring dominance of Bitcoin remains a central theme, serving as a beacon of stability in a rapidly evolving market.
Bitcoin's Bullish October
Bitcoin's Bullish October
We have just entered what has historically been the most bullish month for Bitcoin. Since 2013, Bitcoin has seen positive returns in 9 out of the past 11 Octobers, making it one of the strongest months for Bitcoin in terms of price growth. On average, October has delivered an impressive 23% return. If Bitcoin follows this historical trend, a 23% gain from the current price would push Bitcoin to a new all time high of $78,000 USD. Are you prepared for the potential rally?
With Bitcoin currently battling within a five-month bull flag, October could serve as the catalyst that pushes Bitcoin past resistance levels and into uncharted territory. A breakout from this formation might result in a surge of buying activity, potentially propelling Bitcoin to new all time highs.
Don’t miss the chance to position yourself for the upcoming rally. Reach out to your Stormrake broker today to lock in the best execution price, there is no second best.
Bitcoin Technical Analysis:
Bitcoin Technical Analysis:
A clearer view of the chart can be found here: https://www.tradingview.com/x/TfYUizFC/
September was a month where both sides of the market were in control. Bears were dominating and looking to push BTC back below $50k early in the month, before a sharp reversal from the bulls on the anticipation of the first interest rate cut in over four years.
Bullish momentum was halted for a few days upon reaching the 200 SMA and the previous lower high. This was the last stand for the Bitcoin bears, but they failed. For the first time since June, BTC has created a new high, thus flipping the overall trend back to the upside. Not only has BTC created a new high, but it has also broken out of the bull flag channel. If this bull flag is to play out, then BTC will push on and create new all-time highs. A pullback to the top of the flag channel may occur; these patterns often find themselves retesting the breakout before continuing to the upside
The combination of the current breakout and bull flag, occurring during what is Bitcoin's most successful month, is a recipe for success for the entire space.
The First Interest Rate Cut in 4 Years:
The First Interest Rate Cut in 4 Years:
The U.S. Federal Reserve recently implemented its first interest rate cut since March 2020, reducing rates by 0.5% to a new range of 4.75%–5%. This move aligns with forecasts and marks a significant shift in monetary policy after a prolonged period of rate stability. Following the decision, Federal Reserve Chair Jerome Powell addressed the media to provide clarity on the rationale behind the cut and to outline potential future monetary actions.
This rate cut and the insights from Powell suggest a measured and responsive approach by the Federal Reserve. By prioritising data-driven decisions and maintaining flexibility, the Fed aims to navigate economic challenges while fostering stability. Investors and market participants are advised to stay attentive to future announcements, as the central bank's actions will continue to be influenced by evolving economic conditions.
Is the Rate Cut Bullish or Bearish for Bitcoin?
Is the Rate Cut Bullish or Bearish for Bitcoin?
The recent 50 basis point rate cut has stirred debate on its implications for Bitcoin. As yields decrease, the U.S. dollar becomes less attractive, leading to a decline in the value of U.S. bonds. This environment encourages investors to move toward risk-on assets due to cheaper borrowing costs. Historically, large rate cuts have been associated with signs of economic instability, and equities have performed better after gradual rate reductions compared to the swift cuts typical during economic crises. Different sectors are impacted variably, influenced by shifting consumer demand and sensitivity to interest rates.
For Bitcoin, the rate cut sends mixed signals. Traditionally, rate cuts have been positive for hard assets like Bitcoin because they are inflationary, prompting capital to flow into assets that serve as stores of value. Contrary to historical expectations, both Bitcoin and traditional markets have rallied following the 50 basis point cut. Since the announcement, gold has reached new highs—up 4%—the S&P 500 has increased by 2%, and Bitcoin continues its bullish momentum with an 8% rise. This immediate reaction suggests that, despite historical precedents, the rate cut may be bullish for Bitcoin in the current economic landscape.
Market Update
Market Update
Here is the fast five of what you need to know about the market in September 2024:
- Bitcoin ends the month up 11% after recovering from an earlier 11% decline during the month
- Toncoin recovers and re-enters the top 10 cryptocurrencies after previously falling out.
- Ethereum is up 10%, while Solana continues to outperform Ethereum, closing the month up 20%.
- Fantom rises 60% during September, gaining 35% since its first mention in our Morning Note.
- Nervos Network (CKB) breaks into the top 100 after closing the month up 121%.
Video of the month
The Memecoin Supercycle
In the news
Caroline sentenced to 2 years for FTX fraud:
Caroline Ellison, a former top executive at the cryptocurrency exchange FTX and ex-girlfriend of its founder Sam Bankman-Fried, has been sentenced to two years in prison for her role in one of the biggest financial frauds in U.S. history. Ellison, 29, admitted to charges including wire fraud and money laundering as part of a plea deal and testified against Bankman-Fried, who received a 25-year sentence for stealing more than $8 billion from customers. She was ordered to forfeit over $11 billion to the court and may be required to pay additional restitution.
Blackrock leaning towards BTC over growing concerns surrounding the US Dollar:
BlackRock’s involvement has significantly boosted Bitcoin’s legitimacy and price, driving it from $30,000 to $74,000 after filing for a Spot Bitcoin ETF in late 2023. As institutional interest grows and concerns over the U.S. dollar rise, BlackRock's recognition of Bitcoin as "digital gold" further cements its role as a mainstream financial asset and a hedge against economic uncertainty.
Stormrake's Morning Note:
We have relaunched our Morning Note. These are quick 3-4 minute reads sent to your inbox 5-6 days a week. They recap the previous day's trading, key price levels for BTC and ETH, notable events, as well as the 'Stormrake Spotlight,' which focuses on a coin that we believe will perform well over the course of the week. Our two most recent picks have been FTM and ETH, both great choices.
Find our Morning Note here and be sure to subscribe: https://stormrake.substack.com/
Bitcoin and Ethereum ETF Performance:
During the week of September 23 to September 27, Bitcoin spot ETFs saw a net inflow of US$1.11 billion. BlackRock's ETF, IBIT, accounted for US$499 million of this inflow, while the 21Shares Bitcoin ETF, ARKB, received US$269 million.
In the same period, Ethereum spot ETFs experienced a net inflow of US$84.51 million. Grayscale's ETF, ETHE, had an outflow of US$127 million. Conversely, BlackRock's ETF, ETHA, saw an inflow of US$94.95 million, and Fidelity's ETF, FETH, attracted US$64.91 million.
Education
How Bitcoin is Mirroring the Internet's Boom:
How Bitcoin is Mirroring the Internet's Boom:
Both Bitcoin and the Internet were initially dismissed by sceptics as fleeting bubbles destined to burst. Critics argued that the Internet was a passing fad, and in its early days, Bitcoin was often labelled a speculative asset with no intrinsic value. However, both technologies have defied these predictions, demonstrating resilience and sustained growth over time. The trajectory of Bitcoin's adoption closely parallels the early growth of the Internet, highlighting a transformative shift in how we perceive and utilise technology.
The similarities between the two extend beyond scepticism and into their adoption rates. In the 1990s, the Internet was a nascent technology, met with uncertainty and limited to niche communities. Similarly, Bitcoin began as an obscure digital currency understood and used by a small group of enthusiasts. Statistical comparisons reveal that Bitcoin's user base is expanding at a rate akin to Internet adoption during its formative years. It took the Internet approximately seven years to reach 100 million users; Bitcoin is on a similar path, with adoption accelerating due to increased accessibility and global connectivity.
This pattern suggests that Bitcoin could become as integral to everyday life as the Internet is today, fundamentally altering finance, commerce, and even governance. The development of supporting infrastructure plays a crucial role in this evolution. The Internet's growth was propelled by advancements in hardware, software, and network capabilities, making it more user-friendly and accessible. Bitcoin is experiencing a comparable evolution with the creation of user-friendly wallets, exchanges, and Layer 2 solutions like the Lightning Network, which enhance scalability and transaction speed.
Moreover, institutional adoption and regulatory clarity are legitimising Bitcoin, much like early Internet regulations helped foster trust and widespread use. As governments and major financial institutions begin to embrace blockchain technology, Bitcoin's position as a mainstream asset strengthens. This institutional support not only boosts confidence among individual investors but also paves the way for innovative financial products and services.
In essence, the adoption of Bitcoin is not just about a new form of currency but represents a paradigm shift in how we understand and interact with digital assets. Drawing parallels with the Internet's history provides valuable insights into Bitcoin's potential trajectory and the profound impact it may have on global economic systems. Both have overcome initial scepticism and accusations of being mere bubbles, solidifying their roles as transformative forces in the modern world.
Stormrake on Tour:
We are thrilled to announce two major events that our crypto brokerage is hosting and sponsoring in the coming weeks. Designed for investors and enthusiasts alike, these events offer unparalleled opportunities to gain insights into the evolving landscape of digital assets and alternative investments.
Beat The Reset: The Great Australian Roadshow (October 1 - 6)
Join us at "The Great Australian Roadshow" coming to a major city near you. Where our crypto brokerage will dive deep into market insights, cryptocurrency trends, and future opportunities in digital assets. The evening will also feature valuable insights into gold and precious metals, providing a comprehensive look at alternative asset classes and their future. It’s an ideal event for those looking to understand the broader economic landscape and explore diverse investment opportunities in a rapidly shifting financial world.
You can find tickets and detailed information about dates and locations below:
Australian Crypto Convention: (November 23-24)
Our brokerage firm is excited to attend the upcoming Australian Crypto Convention in Sydney, a premier event for the digital asset industry. It’s a unique opportunity to gain the latest insights into cryptocurrency trends, blockchain technology, and investment strategies from leading experts. We’re pleased to offer our clients discounted tickets to join us at this highly anticipated event. Don’t miss out on exclusive networking opportunities, cutting-edge discussions, and the chance to stay ahead in the evolving world of crypto.
Find the tickets below:
Written by Alexandar Artis
Memes of the month
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