Donald Trump's presidential campaign officially accepts Bitcoin ❗️

Welcome to the daily Coinsauce Newsletter, its good to be back. Lets get straight into today’s newsletter!

📅 Today

🔍️ Market Outlook

• Overall Bias - Bullish 📈 

• BTC has broken above it’s key resistance of $67,500 with strength & volume, and given multiple daily closes above the same, which is bullish.

• It is now aiming to re-test All-Time-Highs (ATH) and reach price discovery

• $67,200 has now flipped into a key area of support in case of a re-test

• Since ETF demand has picked up drastically, chances for a new ATH increase

• Areas to long BTC from a technical perspective include a re-test of ~$67500, or on a strong breakout of the all-time-high.

Trump X Bitcoin 🕶️ 

Make America Great Again!

Donald Trump's presidential campaign now officially accepts Bitcoin and crypto, as part of an effort to build what it calls a “crypto army” leading up to Election Day.

The donations will be reported as in-kind contributions, much like gifts of stock. The campaign can then decide to either liquidate the digital currency or hang on to it.

This promotes Trump’s message that he is a crypto-friendly candidate, and also appeals to a core group of young male voters who are increasingly venturing into the digital assets space.

Meanwhile, Presidential Candidate Robert F Kennedy Jr has bought $24,000 in GameStop, $GME to support the "retail rebellion."

ETF inflows make a comeback 🤝 

The Bitcoin ETF’s are back & how!

After subdued demand by the spot ETFs in April & May, the last week inflows have been incredibly bullish.

The inflows have been consistently positive over the past 7 trading sessions, adding a total of 22,500 BTC worth $1.4 billion in just the past week!

The steady & substantial size of inflows have material implications on the price of Bitcoin, and in our opinion, if this level of demand is sustained, then we can see new all time highs for Bitcoin’s price relatively soon!

 📔 Educational

"Low float, high FDV" coins are struggling. What could be the potential reasons and implications of the same? Here are our views on the same 👇️

More than 80% of all tokens listed recently on Binance are down. The three most popular theories include :

1️⃣ VCs/KOLs are dumping on retail. If true, we'd see tokens with short lockups dumping faster. But data shows all tokens fell together in mid-April. Most top-tier VCs are still locked up & they cannot sell yet, so this seems unlikely.

2️⃣  Volume is shifting towards memecoins. ~14.3% of Binance volume today is in memecoin pairs. Liquidity is shifting from VC coins to memecoins, as investors search for quick outsized returns.

3️⃣ Retail has realized VC's own too much of the project, thus looking elsewhere for a level playing ground. However, higher team & insider allocations are not a problem exclusive to this cycle. For example, insider allocations in the last cycle were : SOL 48%, AVAX 42%, BNB 50%, STX 41%, NEAR 38%, which is pretty comparable to ones recently launched.

Solutions? Some suggest bringing back ICOs or 100% immediate unlocks, but these have issues like potential dumps or legal constraints. Other ideas include bookrunners for tokens or larger airdrops, which could be complicated to execute.

Historically, tokens often dip before recovering. AVAX, SOL, and NEAR all saw ~25-50% drops 2 months after listing but eventually thrived. Building great products remains the key to building in web3.

Implications : Since there are many VC projects being launched every week, but little to no fresh retail capital entering the market by retail, buying pressure for these remains subdued. Once market conditions pick up, so should the price of these tokens for the short term. However, the long term sustainability of these tokens still depends on the project's utility, community growth, roadmap, user growth and other such fundamentals.

The markets tend to eventually weed out the weaker participants & the bad actors, and this time would be no different.

📊 Stats

Ethereum’s market cap has risen to $443.8 billion, surpassing Mastercard & climbing to the 26th position in the global asset rankings.

📈 Chart of the day

• Rationale & confluences :

• 4Hr & 1Hr horizontal support

• Potential 4H Double Bottom

• 1H discount zone

• 1H bullish Order-block

• Bullish Orderbook imbalance

• No divergences in Open Interest yet

• Note : None of the content in the newsletter is financial advise. This is for educational purposes only.

🤣 Meme of the day

That concludes our update for today!

We appreciate you joining us for the latest news. Our aim is to provide insights and highlights that keep you well-informed and ready. Remember to follow us on social media for additional updates and giveaways. Happy trading, and see you next time!

Donal