Greetings crypto comrades!

This is the Hodl Report, where we deliver crypto news and insights more delightful than your cat accidentally sitting on the “buy” button during a dip! 🐾💸

In today’s issue:

1. Crypto’s promised rally 📈

2. Crypto catch-up: Week in review 📰

3. Magnificent memes 🤣

🌕 Wen Moon? Wen Lambo? 🚀 

If you’ve heard “wen moon, wen lambo?” you’re a true crypto OG! This week’s headlines might look scarier than a cat's reaction to a cucumber ambush 🥒, but don’t forget - the fundamentals of blockchain and crypto are still rock solid. 💪

We all love obsessing over short-term price swings, but if you zoom out, this little dip looks like a tiny speed bump on the road to the moon. 🌙 Think of it as a blink-and-you-miss-it moment in the grand scheme of things.

Crypto loves a good cycle, especially the famous 4-year Bitcoin cycle. Here’s the gist:

• 2-3 years of a bull run hitting new highs

• Followed by a 1-year bear market that brings prices down

This cycle revolves around the Bitcoin halving event, happening every four years, where the number of Bitcoin being minted into supply gets cut in half. Basic supply and demand laws suggest prices should double and miners that power the network keep earning the same revenue. Win-win! 💸🎉

There are always nuances, like the halving grabbing media attention and bringing new eyes (and dollars) to crypto. But if everyone already knows about this cycle, why aren’t they buying in early? 🤷‍♂️

April 19, 2024, marked the latest Bitcoin halving event, and guess what? We’ve already smashed through the 4-year cycle trend, hitting a new all-time high!

So, What’s Different This Time? 🤔

(TLDR - there are 5 key reasons)

1. Bitcoin ETFs

Bitcoin ETFs make it super easy for regular folks to get some Bitcoin exposure. No need for wallets, seed phrases, addresses, private keys and the potential to lose it all with a typo. You can now dip your toes into the crypto pool without diving headfirst into the deep end. 🏊‍♂️ Plus, you can hold these ETFs in tax-advantaged accounts, keeping Uncle Sam from crashing your crypto party. 🥳

Not just individuals, but now institutions and corporations will also rejoice! Bitcoin ETFs mean they can now allocate funds to a Bitcoin ETF without all the fuss.

But wait, there's more! Ethereum (ETH) ETFs are on the horizon, and the SEC has given ETH the thumbs up, saying it's not a security. 🙌 So, get ready for more crypto goodness coming your way soon!

2. High Interest Rates and Election Year

We're in a high-interest-rate environment, which is a whole new ball game compared to the low or zero rates we've seen in the past four year cycles. The good news? Liquidity is on the way, along with some juicy rate cuts. Check out the liquidity cycle below to see that we are now on the upswing of increasing liquidity. Think of it as a financial seesaw, and we’re about to tip back in our favor! ⚖️

And guess what? It's US election year! President Biden wants to keep the economy looking sharp and the wallets fat as voters head to the polls. 🤑 Meanwhile, Trump, the challenger, is cozying up to crypto like a cat to a warm laptop. 😻

With all this election pressure, don’t be surprised if the money printer goes brrrr again. More liquidity means more fun for everyone! 🎉💸

3. The Crypto Space is Growing Up

Our favorite digital playground is maturing, and it's looking pretty good in a suit and tie. 🤵‍♂️ Regulation is finally here. We didn’t like it before, especially the die-hard crypto purists. But let’s face it, it’s a necessary step to advance adoption. It’s like eating your veggies – not fun, but good for you! 🥦

With clear regulations, companies can now build within well-defined boundaries. It's like coloring inside the lines – it helps create a prettier picture! 🎨 Plus, consumers can join the party with confidence and reassurance, knowing there’s some oversight keeping things in check. 🎉

While there are still some bad actors lurking in the shadows, the new regulations and market maturity are here to help educate folks and reduce scams and fraud.

4. Bitcoin: The New Kid on the Asset Block!

Bitcoin is finally being recognized as its very own asset class! 🎉 It’s not every day we get a shiny new toy to diversify our investments into. Financial advisors are starting to suggest allocation to crypto for consumer portfolios anywhere from 1-10% depending on the advisor and the risk tolerance of the investor.

Huge hedge funds are now allocating chunks of their billion-dollar portfolios to Bitcoin. It’s like seeing the cool kids start playing with your favorite new gadget – suddenly, everyone wants in! 😎

And it’s not just the hedge funds. Companies, and even countries, are adding Bitcoin to their balance sheets in order to diversify, treating it like digital gold. 🪙

5. Generational Wealth Transfer

Get ready for a financial shift of epic proportions. The Baby Boomers are set to pass down their massive wealth, and guess what? The younger generations have their eyes on crypto! 💸

Baby Boomers hold over 50% of the US’s $140 trillion in wealth, mostly tied up in pensions, equities, and real estate. When this wealth gets passed down to Gen Z and Millennials, what asset classes do you think they'll favor? Spoiler alert: it’s not gonna be your grandpa’s bonds. 📉👴

A Bank of America report shows that 28% of 21-43-year-olds prefer crypto as an investment, compared to just 4% of those 44 and older. This generational wealth transfer could mean a massive influx of investment into crypto. Imagine the tidal wave of cash flowing into digital assets as the younger generation takes the reins.

So in the end, "Wen Moon" is thinking too small – the moon is just a pitstop. 🌙 Our next adventure? Outer space, far beyond the moon, to places unknown!

Dust off your moon boots and prepare your best celebratory dance moves. 🕺 The crypto rally is knocking at the door, so let’s ride this rocket to the moon and beyond together! 🌕✨

1. Justin Sun (Tron founder) offers to buy German Bitcoin: The German government has recently been adding sell pressure to the Bitcoin market (alongside the Mr. Gox selloff) from its seizure of Bitcoin from the pirate movie site Movie2k. Justin Sun has offered to negotiate with the government to buy their Bitcoin off-market to minimize price impact…our hero

2. Mt. Gox creditors likely to sell in July: Over $9.4 billion worth of Bitcoin will be repaid to over 127k Mr. Gox creditors, who have been waiting over 10 years to be repaid. Considering the Bitcoin price increased over 8,500% during that time, it’s likely they will sell to lock in some profits. It’s going to be a choppy July.

3. Meme coin Dogwifhat (WIF) to debut on Vegas Sphere?: Crowdfunding organizers raised $700k to put Solana meme coin WIF ($1.8B market cap) mascot on Vegas Sphere for a whole week. Organizers are 90% confident deal will go ahead, but if not donors will get funds repaid.

4. Stablecoin issuer Circle first to get MiCA license: Circle, the issuer of USDC was first among stablecoin issuers to be granted an EMI license in Europe, the first step to become compliant under the new European MiCA licensing requirements. Circle’s USDC is ranked 2nd by market cap at $32 billion behind stablecoin issuer Tether (USDT) at a $100 billion market cap.