🐻 Buy the print, Bitcoin is going to $1M
A $1M bet on Bitcoin
GM friends. It looks like spring is arriving early this year! After enduring the long crypto winter, Bitcoin is finally in bloom again, and this time, it could actually last all the way to $1 million. How could that be possible? Well, thank the unofficial Bitcoin marketing team.
The #bitcoin marketing team
— Relai - we're hiring! 🇨🇭 (@relai_app)
Mar 18, 2023
In this issue:
📣The big story of the week. Place your bets, is Bitcoin going to $1 million?
🚀The good. DeGod launches their first Bitcoin NFT collection that sells out in minutes and Youtube influencers get slapped with a $1 billion lawsuit for promoting FTX.
🐻The big, bad FUD. Doodles founder says they aren’t a NFT project anymore raising concern within the community and Shibarium blockchain gets called out for plagiarism.
📣The big story of the week
Place your bets, is Bitcoin going to $1 million?
Since last week’s unwinding of Silicon Valley Bank (SVB) and Signature Bank, a series of events have unfolded to tangle up the mess even more:
SVB files for Chapter 11 bankruptcy
Bank of America is buying Signature Bank
UBS acquires Credit Suisse for a heavy discount of $3.2 billion
11 big US banks spin up a $30 billion rescue package for First Republic Bank
Several large global banks agree to open international swap lines to enhance USD liquidity
Oof, that’s a lot to take in. Let’s break this down a bit.
Bank borrowing soars to ATH
Last week, the Fed came up with the Bank Term Funding Program (BTFP) to offer banks and institutions a loan of up to one year using collateral such as bonds, mortgage-backed securities and other assets.
As of Wednesday, banks borrowed nearly $12 billion from BTFP.
The Fed just tacitly admitted they caused the crisis.
They set up BTFP to buy back the bonds whose values they destroyed.
First they printed trillions, then told banks to buy bonds with that, then devalued those bonds, and now they need to print again.
— Balaji (@balajis)
Mar 13, 2023
But there is actually another bank loan program that has been around for a while. The “discount window” is an emergency borrowing program where the Fed readily provides liquidity for banks that need it.
In 2008, after the Lehman Brother’s collapse, the Fed loaned out a record of $110 billion in one week.
Well, that record just got broken this week with $152 billion taken out by banks through the discount window.
US Banks borrowed over $150 billion from the Fed's discount window last week, blowing past the previous record during the 2008 financial crisis ($112 billion).
— Charlie Bilello (@charliebilello)
Mar 19, 2023
What does this mean though? It signals that several banks are either insolvent or taking extreme precautionary measures to ensure that they won’t experience a bank run like SVB. Either way, it’s debt on debt on debt. More printing and more devaluing of the currency.
On top of that, several leading central banks from around the world have announced a collaborative effort to help keep US dollars flowing in the system by opening up swap lines daily, rather than weekly.
For anyone wondering, "So what's this?"
These "swaps" have been around for years. The Fed lends dollars to foreign central banks, usually weekly, with seven-day loans.
At the end of the term, the Fed swaps back the currencies at the original exchange rate and collects interest
— Nick Timiraos (@NickTimiraos)
Mar 19, 2023
Translation: foreign banks can now borrow dollars from the Fed 7-days a week. Money printer on.
Bitcoin to $1 million
With all the excessive money printing happening, some crypto experts are warning of hyperinflation of the dollar, particularly Balaji, author of The Network State and prominent voice in the crypto community.
When this happens, it only means up for Bitcoin.
How do you ring the fire alarm on the internet?
How do you show it’s not a false alarm?
I am putting up the BitSignal.
$1M in BTC to alert us to the stealth financial crisis.
$1000 per tweet, for the best 1000.
Reply with your charts, graphs, stats, memes!
— Balaji (@balajis)
Mar 16, 2023
In fact, Balaji is so bullish for Bitcoin that he has publicly placed a bet with two individuals wagering on Bitcoin to hit $1 million in 90 days, or he will send $1 million in USDC.
I will take that bet.
You buy 1 BTC.
I will send $1M USD.
This is ~40:1 odds as 1 BTC is worth ~$26k.
The term is 90 days.
All we need is a mutually agreed custodian who will still be there to settle this in the event of digital dollar devaluation.
If someone knows how to do this… twitter.com/i/web/status/1…
— Balaji (@balajis)
Mar 17, 2023
The BitSignal is out. What are you placing your bets on? All I know is that it doesn’t hurt to stack up a little extra Bitcoin right now.
Popular NFT collection, DeGods launches a collection of 535 Bitcoin NFTs. The Ordinals hype is still hot with the collection selling out within minutes.
A group of Youtube influencers get slapped with a $1 billion lawsuit for promoting FTX. Some popular creators include Ben Armstrong (BitBoy) and Graham Stephan.
🐻The big, bad FUD
Doodles founder says that they are no longer an NFT project. They’ve got big plans to grow into a leading media franchise, but some collectors are not happy about the abandonment of their NFT roots.
Shibarium gets called out for possible plagiarism. SHIB token falls 10% after some community members notice similarities in the Shibarium blockchain’s code to the Rinia testnet. Stolen or open-sourced?
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