Welcome, Hodl Hooligans!

You’re reading the Hodl Report, where we serve up crypto insights from the week to make those gains and memes legendary! 🚀

This week we cover:

• Review of market signals & indicators🌎

• Forecasts & predictions from the pros 💡

• Important news from the week 📰

• Our new portfolio strategy 💼

• Crypto funnies 🤣

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Let’s jump right in and review the indicators that we’re keeping a close eye on for any whispers of a bull market:

1. 📈 Liquidity - With interest rates dropping, borrowing for investment is heating up, and M2 money supply is rising right along with it. Translation? Liquidity is on the hunt for a new home - and it’s hungry for returns!

2. ⛏️ Bitcoin Mining -  Hash rates are at record highs while miner reserves are scraping the bottom - meaning miners are spending big to keep operations running and don’t have much BTC left to sell. With reserves this low, there’s barely any BTC supply left to offset the booming demand.

3. 🪙 Stablecoin Supply - The stablecoin market cap is approaching record highs, meaning there’s already plenty of liquidity in crypto markets just waiting to flow into various crypto assets.

4. 🏦 Crypto on Exchanges - Crypto balances on exchanges have been dropping since late 2021 and just hit all-time lows, leaving even less supply available to meet the rising demand.

5. 🚀 Market Events - With the FTX creditor payouts bringing more fiat to the market (more potential buyers) and the delayed Mt. Gox repayments holding back crypto supply (less selling pressure), we’re set up for higher liquidity and added buying pressure in the crypto market.

What do the Pros think?

Compass Point analysts like Joe Flynn and Ed Groshans see BTC on a promising path to a new all time high in the near term (coming weeks or months) listing some of the reasons above in their research.

Goldman Sachs is not so upbeat on the traditional S&P 500, forecasting returns of just 3% annually over the next decade, which means higher-risk markets (hello, crypto!) might see new interest as investors continue to chase higher yield.

Paul Tudor Jones dropped some spicy takes in a CNBC interview recently. He highlighted the U.S.’s skyrocketing debt-to-GDP ratio and voiced concerns about a possible debt crisis, especially as bondholders lose faith in the U.S. treasury.

His solution? Inflation-hedging assets: he’s going long on Bitcoin, gold, and commodities, leaving U.S. treasuries behind. His bold message? The dollar may not hold value as strongly in the coming years, so assets that can weather inflation look like the safer bet.

In short, we’re looking at rising liquidity from several angles, fresh funds entering from payouts and lower interest rates pushing investors toward higher-return assets. All these factors are building toward a strong increase in demand to buy crypto, with supply staying scarce.

1. Stripe Acquire’s Crypto Company Bridge for $1.1 Billion: Stripe has announced its acquisition of Bridge, a stablecoin infrastructure company, to enhance its capabilities in tokenized dollar payments. This deal, valued at $1.1 billion, positions Stripe to advance cross-border and instant settlement solutions, aiming to streamline global payments and reduce reliance on traditional banking​.

2. Microsoft Asks Shareholders to Consider Bitcoin Investment: Microsoft has added an assessment on investing in Bitcoin to its December shareholder meeting agenda, sparking anticipation about the tech giant's potential involvement in digital assets. If approved, the move could mark a significant step in Bitcoin’s institutional adoption, bringing new attention to crypto within corporate investment circles.

3. Ledger Live Brings THORChain Cross-Chain Swaps to Users: Ledger Live has integrated THORChain, allowing users to natively swap assets across blockchains directly in the app. This new feature gives Ledger users seamless, decentralized cross-chain swap capabilities without relying on wrapped assets.

4. Football Stars Face Legal Trouble Over $3.2B Pyramid Scheme: Several prominent football players are under legal scrutiny for their roles in promoting a $3.2 billion pyramid scheme, allegedly deceiving investors through a fraudulent crypto platform. The lawsuits claim these athletes helped boost the scheme’s credibility, drawing attention to potential liabilities for celebrity crypto endorsements.

5. Crypto Lawyer Predicts Surge in Memecoin Lawsuits: Crypto lawyer Max Burwick anticipates a sharp rise in lawsuits as investors increasingly seek compensation for losses from speculative memecoin projects. With courts likely to apply the Howey test for securities, celebrities promoting these tokens may also face increased legal scrutiny.

6. Bitcoin Hashrate Reaches Record High: Bitcoin’s network strength hit a new milestone, with its hashrate reaching an all-time high of 769.8 exahashes per second. This surge in computing power - driven by increased competition from publicly listed mining firms - signals rising network security, though it also raises the cost for smaller miners trying to stay profitable​.

Hodl Report Portfolio

New Strategy Update

Alright, fam - our portfolio is up 20% since we started under two months ago, with every trade out there for all to see. But here’s the kicker: we’ve set a bold goal to 10x in 10 months, which means it’s time to take on some spicy bets. Get ready for memecoins and low-cap treasures that could bring the heat!

Don’t worry, we’re keeping our solid top picks front and center, but we’re going to have to roll out a small, high-risk slice of the portfolio for some moonshots to hit our 10x target. We’ll be careful though. We’ve been trading in the crypto space for nearly 10 years and know how memecoins and low market cap coins go…something like 👇

This week, our Solana position has been the star of the show, fueled by - you guessed it - memecoins! In fact, a whopping 77.8% of Solana’s DEX volume is all about memecoins.

As for Bitcoin, it’s staying steady, with higher highs and higher lows giving us bullish vibes. We’re eyeing 66k as a key retrace point, and anything around 62-63k is still fair game for a healthy pullback. The real magic happens once we break the all-time high and hit the price discovery zone.

Next week’s issue?

We’ll break down more on memecoins and the strategy we will take towards them and other high-risk picks. We will also list our many of the coins we are currently watching and detail some potential entry points.

Don’t miss it - it’s gonna be a must-read for the thrill-seeking traders out there!

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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).