3 Ghosts of Crypto: Past Panic, Present Pain, Future Pump đ»
From Trumpâs tariff chaos to Powellâs money printer whispers - the past spooked us, the presentâs shaky, but the future? Bullish as hell. đ
Howdy Hodlers!
What. A. Week. đ€Ź
Felt like we just time-traveled straight back to peak crypto chaos⊠volatility, hopium, and confusion included.
So letâs summon the ghosts of crypto past, present, and future to figure out what the hell is actually going on out here. đ»
Where to Invest $100,000 According to Experts
Investors face a dilemma. Headlines everywhere say tariffs and AI hype are distorting public markets.
Now, the S&P is trading at over 30x earningsâa level historically linked to crashes.
And the Fed is lowering rates, potentially adding fuel to the fire.
Bloomberg asked where experts would personally invest $100,000 for their September edition. One surprising answer? Art.
Itâs what billionaires like Bezos, Gates, and the Rockefellers have used to diversify for decades.
Why?
Contemporary art prices have appreciated 11.2% annually on average
âŠAnd with one of the lowest correlations to stocks of any major asset class (Masterworks data, 1995-2024).
Ultra-high net worth collectors (>$50M) allocated 25% of their portfolios to art on average. (UBS, 2024)
Thanks to the worldâs premiere art investing platform, now anyone can access works by legends like Banksy, Basquiat, and Picassoâwithout needing millions. Want in? Shares in new offerings can sell quickly butâŠ
*Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.
đ» The Three Ghosts of Crypto
Ghost of Cryptoâs Past: Red Friday Returns
Well, well, the ghost of 2018 (and 2021... and 2022) just paid us a visit. On Friday, the market did its best rollercoaster-from-hell impression with Bitcoin dipping hard, and everything below the top 5 absolutely cratering.
The culprit? Trump.
After casually announcing a 100% tariff on China, financial markets went into full panic mode. Stocks dumped, futures bled, and crypto (which never sleeps) got obliterated in one of the sharpest selloffs weâve seen in years.
By Sunday? Prices were right back where they started.
If you werenât over-levered and had some dry powder, that was probably the best buying opportunity youâll get this quarter. Us? Yeah⊠we got liquidated on all our leveraged trades. RIP. Spot traders, congrats, that one was for you.
Ghost of Cryptoâs Present: Uncertainty & PTSD
Now weâre here, still shaking off the trauma from Red Friday. The marketâs jittery and has been bleeding slowly out of higher risk alts, unsure if the US-China trade war 2.0 is just political theater or the start of another TACO-level meltdown? Well, a trusted source sums up Trumpâs trade strategy as followsâŠ
The current vibe? Risk-off but ready.
Thereâs billions in capital sitting on the sidelines, waiting for clarity. Meanwhile, the âWeâve already topped!â crew is sharpening their âI told you soâ knives⊠but theyâre wrong.
Why? Because weâve already seen the future.
Ghost of Cryptoâs Future: Money Printer Go BRRR (Again)
Jerome Powell just dropped a sneaky little line that changes everything:
âThe Fed may be approaching the point of ending its quantitative tightening.â
Translation: QT (quantitative tightening) is almost done and that means QE (quantitative easing) is on deck. When QT ends, the drain of dollars out of the system stops, and liquidity floods back in. Thatâs bullish as hell for risk assets.
On top of that, Powell hinted that rate cuts are coming soon, as âdownside risks to employment have risen.â Combine that with tariff drama likely being just a negotiation tactic before Trump and Xiâs next meeting, and weâve got the perfect setup for one thing: a massive Q4 rebound.
So, where does that leave us?
Sitting here, licking our liquidation wounds, with some dry powder ready to deploy⊠but our thesis unchanged.
The markets can stay irrational longer than we can stay solvent⊠but thatâs never stopped a true hodler before.
TLDR: Trillions are chilling on the sidelines while the market throws a tantrum, but the printerâs warming up, rates are about to drop, and all that fresh cash is gonna need a new home. đž
Hello crypto, my old friendâŠ
The ghosts have spoken and the future still looks bullish.
HODL strong, friends. đ
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Hodl Headlines
The Weekâs Most Interesting News
Record Crypto Crash Triggers Liquidations: A sudden crypto market crash sent shockwaves through leveraged funds, prompting large-scale liquidations. The drop underscores fragile bull sentiment and mounting overextension in crypto markets.
DOJ Seeks Forfeiture of $14 B+ in Bitcoin: The U.S. Department of Justice filed a civil forfeiture complaint for ~127,271 BTC (worth over $14 billion) linked to a massive fraud and money laundering scheme. The funds were held in unhosted wallets controlled by Chen Zhi, founder of Prince Group, now facing charges.
SBF Blames Biden Agenda for Conviction: Sam Bankman-Fried claims his recent conviction was politically motivated and tied to the Biden administrationâs anti-crypto stance. Heâs preparing for a November appeal amid renewed public and legal pressure.
UK Keeps Bulk of Seized BTC: The UK government plans to compensate some victims from a $7.2B Bitcoin seizure, but prosecutors intend to retain the majority. Critics say the move shortchanges defrauded individuals in favor of state gains.
Mysterious Trader Firms Up Bitcoin Short Position: An anonymous Hyperliquid whale has doubled down on a short bet against Bitcoin, sparking speculation about large-scale insider or hedging strategies. The move signals growing tension between macro sentiment and derivatives positioning.
Morgan Stanley Drops Crypto Restrictions for Wealth Clients: Morgan Stanley is removing prior restrictions that limited crypto fund access to only high-net-worth clients. Starting October 15, its advisors can pitch Bitcoin and Ether funds across all wealth accounts.
Big thanks for making it to the end of this weekâs Hodl Report! đ
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Happy Friday!
Disclaimer: The content from Hodl Report should not be taken as trading, investment or financial advice or solicitation to buy or sell any assets. This newsletter is for informational and educational purposes only. Please be careful out there and DYOR (do your own research)