The Rate Cut Cycle Has Begun!

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📅 Today

🔍️ Market Outlook

• Overall Bias - Cautious 🙏 

• BTC broke the key $62,400 level, but failed to re-test and hold it as support.

• It also failed to hold $56,000, a crucial support zone.

• BTC is now trying to re-test these levels as resistance.

• $60,000-$63,000 is a big resistance area that BTC must break, or risk further consolidation otherwise,

• This level is the bull-market support band (20 Week SMA & 21 Week EMA)

• It is wise to not take any new leveraged positions till BTC closes above this band, and till BTC dominance reverses it’s uptrend.

Microstrategy intends to buy more BTC ❗️ 

MicroStrategy plans to issue $700 million convertible senior notes to institutional investors to purchase more Bitcoin.

The notes will be unsecured, senior obligations of MicroStrategy, and bear interest payable semi-annually in arrears

Proceeds from the notes will be used to buy back debts and additional Bitcoin tokens.

They recently purchased 18,300 BTC worth $1.11 billion funds raised from selling its shares.

They currently hold 244,800 BTC — over 1% of the total Bitcoin supply — with a 17% year-to-date gain.

VC’s are back ❗️ 

VC funds are back with $2.2 Billion raised in 2024 so far.

Venture capital is returning to crypto, with $2.2 billion raised in 2024, nearing last year’s $2.6 billion.

The market’s rebound from the FTX scandal and regulatory issues is drawing VCs back.

With Bitcoin ETFs by firms like BlackRock and more funds being raised, PitchBook forecasts a full crypto VC resurgence by 2026.

As VC money pours into crypto, altcoins should perform well, especially if bitcoin dominance starts to fall, which is expected to happen soon within the next few months.

📕 Educational

Is GEODNET the best DePin play for this cycle?

A detailed SWOT analysis 👇

→ What is GEODNET?

GEODNET, built on Polygon , is creating the world's largest decentralized GPS correction network powered by blockchain technology and satellite miners.

It provides hyper-accurate geospatial data for industries requiring precision, like agriculture, construction, and autonomous vehicles.

→ Why is it needed?

Standard GPS accuracy can deviate by up to 2 meters, but IoT applications often need precision within 1 cm. GEODNET delivers this level of accuracy with a latency of less than 1 second, solving a critical gap for industries relying on real-time data.

→ How does it work?

Anyone can buy and deploy GEODNET base stations/miners (~$700) and earn $GEOD tokens.

IoT companies pay a fraction of traditional GPS service costs to access GEODNET’s data.

80% of revenue is used for token buy-backs and burns, enhancing token value.

→ Market Potential :

The real-time kinematics (RTK) market is projected to reach $4.76 billion by 2031.

Public comparables like Trimble and Hexagon have a combined $10B+ revenue, showing ample room for GEODNET's growth.

With a market cap of less than $30 million, the upside potential for $GEOD is significant.

→ MOATs (Competitive Advantages) :

Cost reduction: Traditional GPS correction systems cost ~$30K per device, while GEODNET’s devices are available for ~$700.

Strategic partnerships: GEODNET has partnerships with key players like the US Department of Agriculture and companies from within and outside the crypto space, including NATIX Network and Rock Robotic.

Token buy-backs: GEODNET burns 80% of its revenues in tokens, reducing supply and increasing value—a model many DePin projects struggle to implement effectively.

→ Key Stats

9,000+ devices across 137+ countries (270% YoY growth)

Miner payback period of less than 9 months

$1.5M+ implied annual recurring revenue

Top 10 DePin protocol by revenue

7.5 million tokens burned (~$1.2M at current market price)

→ Tokenomics :

Max supply: 1 billion $GEOD

Circulating supply: 142 million

50% of the supply reserved for team and investors

35% reserved for mining incentives, halved annually

→ Team & Funding :

CEO Mike Horton has deep expertise in both positioning and DePin industries, previously co-founding a sensor company sold for $50M.

The team has raised $7M+ from funds like VanEck and Pantera Capital.

→ Upcoming Catalysts :

Annual miner reward slashing will reduce sell-side pressure.

A Solana cross-chain bridge in Q3 2024 will expand GEODNET's reach.

A mobile app and location SDK are in development, with user rewards to drive adoption.

→ Conclusion :

GEODNET stands out as a web3 project with real revenue, strategic partnerships, and a sustainable plan to manage token inflation. With strong customer loyalty and backing from a solid team, we call this a W!

📊 Stat of the day

📈 Chart of the day

• Approaching a macro resistance at all-time-highs

• Approaching weekly premium zone as per SMC.

• Bearish Divergence on the weekly RSI

• Be cautious to open longs till a weekly close above all time high is seen.

• Source : Cointraction

🤣 Meme of the day

That concludes our update for today!

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Disclaimer : None of the content shared in the newsletter is financial advise. Always do your own research and analysis before investing.