Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: Are we back? Or in the eye of the storm?

• 🔎 This seems important: Is the bull run over?

• 🤝 Partner: Want To Learn To Navigate Crashes and Thrive in This Bull Run? You Have 12 Months Left (At Best)​

• 🔪 Let's dissect this: The dangers of trending news meme coins

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Bull run, degen, meme coins, market cap.

💅 This is cool:

Are We Back? Or in the Eye of the Storm?

In one sentence: After Monday’s crash, Bitcoin is up 8%, Ethereum is up 11%, and Solana is up a whopping 20% — but black swan events like this have a tendency to take weeks to recover from (not days).

If you’ve never fallen out of a tree after your older cousin said he’d break your Nintendo 64 if you didn’t reach the top in the next 5 mins…

Lettuce explain how it works:

You rarely fall straight down.

Typically, you bounce between the branches, making flailing grabs before you’re met with the hard, unwelcoming embrace of the ground.

Same tends to go for black swan market crashes like the one we’re in now.

After Monday’s crash, Bitcoin is up 8%, Ethereum is up 11%, and Solana is up a whopping 20%.

That’s cool!

But have we hit a tree branch, or solid ground?

We’re not here to give a definitive answer, but a warning…

Cause right now you may have be experiencing some intense FOMO.

“If I had’ve bought in when everyone was panicking, I’d be way up rn! I don’t want to miss any more gains…time to take a 100x long.” — you, probably.

This is a great way to get w-r-e-c-k-e-d.

So before you ape in, remember:

Black swan events like this have a tendency to take weeks to recover (not days).

Check out all the tree branches we hit in 2020, before bottoming and grinding mostly sideways for months:

The takeaway:

If you can’t keep yourself from entering the market — the safest way to do so is by dollar cost averaging in (buy a little each week).

If the devil on your shoulder has a gun to your head, forcing you to take on leverage (borrow cash to buy more crypto), here’s how to soften downside risk:

• Low leverage

• Low position sizing

• Stop losses tighter than the skinny jeans you wore in middle school

Alright, that’s everything — be safe out there folks!

🥇 Want the news before anyone else?

🔎 This seems important:

Is The Bull Run Over?

In one sentence: ETH ETF daily inflows are booming, US futures contracts are up, and ARK bought $17.8M of Coinbase stock, and $11.2M of Robinhood — indicating big market players are still bullish.

Is the bull run over?

Short answer: nah, probably not.

How’re we coming up with such deep technical analysis?

We’re watching what the big-dogs are doing (and you should too).

Here’s what’s happening:

• The Ethereum ETFs recorded their second-largest daily inflows to date on Monday

• US futures contracts are up (indicating the market is betting the US economy will rebound in the near future)

• ARK bought $17.8M of Coinbase stock, and $11.2M of Robinhood on Monday

Add this all up and what do we see?

The big-dogs are buying the dip — which indicates the hundreds of uber-smart analysts these financial institutions have on their payroll are looking at market data, comparing it to where we are in the relevant market cycles and saying:

“I reckon we’re good. Let’s go shopping.”

(Or however MBA types tend to talk).

Point is: the big-dogs see opportunity in the market, not doom — and that’s a pretty reliable indicator we are still in a bull market.

As thanks for their un-intentional guidance, we will be placing an offering of their favorite things (a Patogonia vest, tub of Zyn, and White Claw) at the foot of their god.

In Chad’s name we pray, amen.

🤝 Partner:

Want To Learn To Navigate Crashes and Thrive in This Bull Run? You Have 12 Months Left (At Best)

Crippling shake outs like the one we’re currently experiencing are tough.

…but their par for the course in a bull run.

What’s harder is…

The opportunity we have right now only comes around once every four years.

Being aware of how the market moves in uptrends (mid-cycle crashes and all) marks the difference between netting gains or losses.

And on top of that, we have — what? 10,000+ cryptocurrencies to narrow down from before we can start evaluating and making informed decisions??

This kind of research isn’t a one-person job. 

It takes a team of big-brained savages to sacrifice their sanity, throw themselves in front of the fire hose of daily crypto news insights, and distill everything they learn into a digestible value-overdose of a newsletter.

But that’s exactly what the animals at Milk Road PRO do every week.

So you can not only learn how to navigate these wild market swings — but capitalize on them (without sacrificing the majority of your waking hours).

Milk Road PRO makes you a better investor with:

• Access to the Milk Road PRO Portfolio to see their exact investments with % allocations and live updates.

• Weekly PRO reports that help you spot early trends, navigate macro and crypto markets and analyze specific investment opportunities.

• Weekly “Where Are We In The Cycle?” indicators to help you spot the bull market top before it’s too late.

• And access to the PRO Community, where the Milk Road PRO research team & 100s of fellow PROs talk crypto.

And the research pays off!

→ The Milk Road PRO team called the Q4 2023 rally weeks before it started. Back when Bitcoin was at $30k!

→ They also called $SOL at $25, before it skyrocketed to $200+

Ready to outsource the grunt work of crypto research?

Well, we have good news – as part of our merger, the team is giving any existing Web3 Daily readers 35% off Milk Road PRO!

But don’t sleep on it, this code expires on Monday.

Click the big red button below to join Milk Road PRO now 👇

🔪Let's dissect this:

The Dangers of Trending News Meme Coins

In one sentence: Kamala Harris picked Tim Walz as her running mate which resulted in many people losing money on their Polymarket bets, and other people making/losing money on (silly) meme coins.

If you live in the US, chances are on Tuesday morning you were struck with a million news articles (good, bad, ugly - depending on your algorithm) about Kamala Harris picking Minnesota Governor, Tim Walz, as her running mate.

As a result, two degen-related things happened in crypto:

1. The ~$123M crypto pool of bets placed on Polymarket for who Harris’ running mate would be was divvied out (which was at just 4% odds of Walz winning as of Friday last week).
   

2. Tim Walz meme coins flew up in value (before crashing right back down).
   
   For example, the one week old ‘tem walz’ Solana-based meme coin went all the way up to having a market cap of almost $1M, and then came all the way back down to a market cap of ~$250k as ‘investors’ sensed a bubble and pulled their money out.

So, what’s the moral of this story?

Firstly, crypto is crazy. Even if it doesn’t feel like real money because it’s in token form, that’s real money that’s being played with on meme coins.

Solana-based meme coins have been one of the big catalysts for the growth of the crypto industry as a whole in the past year or so, and chances are, more and more meme coins will continue to be launched about trending news.

But before you get sucked into the lure of those potential green candles, remember that putting money into ‘tem walz’ is not a long term investment strategy; so make sure you’re only ‘investing’ what you can afford to lose.

It just might end up going to zero.

What is an Automated Market Maker?