Crypto Essentials - Your Sunday weekly digest is ready.

We’re back baby, and we’re going to do it all over again…

Welcome friends.

This is The Bull Trap.

Expect memes, laughs and juicy crypto intel.

All of the essential crypto news, that you really can’t afford to miss.

LETS GET IT.

Your 60 second Digest 🏎️💨

There is a lot of news to cover this week, so here’s your 60 second digest. More details below.

• $BTC has dumped. But where do we go next?📉 Since last Monday, $BTC has dumped 16%. Dipping as low as $53,500. Yikes. If we don’t hold this resistance at around $56000 we could visit the low $50,000. We don’t think this will happen. We think the bottom is nearly in - but be cautious and DCA if you have cash reserves ready to deploy. NFA

• GTA 6 🤝 Crypto?! Rumour on the intertweb is that Rockstar is exploring integrating cryptocurrency into the GTA 6 economy. Wow this would be big. As far as gaming catalysts go, this is the kind of thing that sends as to Neptune. Watch this news closely…

• There’s a new UK Government - What does it mean for crypto? 🇬🇧The outgoing Conservatives have claimed they want the UK to be a ‘Crypto Hub’. In practice, this was a sh*t show. The new Government has given us almost zero indication whether they are pro or against crypto. We’ll wait and see.

• A Week of FUD: The German government, Mt Gox and what it means.🗣️ The Germans have sold $175 million worth of $BTC. Absolute paperhands. While the notorious Mt. Gox rumours are back. The defunct crypto exchange went bust in 2014 but have just transferred 47,228 bitcoins to a hot wallet as anticipation builds regarding the $7.6 billion worth of $BTC that will soon begin to be repaid to creditors. Will this drive prices lower? Depends on the creditors schedule…

$BTC has dumped. But where do we go next?📉

Since last Monday, $BTC has dumped 16%.

Dipping as low as $53,500. Yikes.

So is it time for the McDonalds memes?

Well, maybe… but we’re not throwing the towel in just yet. 

But what this does mean is that there is the potential for this to be a long, boring summer. 

I know that's not the news that most in crypto will want to hear.

It may also not workout like that. 

There’s a chance that we hold here and continue our ascent towards a new ATH.

But the reality is that if $BTC doesn’t hold at its current resistance level, then we are likely to revisit the previous support levels just under $51K.

These levels were last visited back in February. 

Of course, this isn't what any of us want. 

We all want to enter an up-only season and watch our bags fill comically large.

But that's not how crypto works. 

In the space of two weeks, sentiment has completely switched from ‘Greed’ to ‘Fear’. 

But it can switch back the other way just as quickly. 

If you’ve been looking for an entry, or are still sidelined.. Now is your chance. 

Buy the fear. 

It’s counter intuitive, but with a 1-2 year timeframe, this is as safe a time as you could find in crypto.

BONUS Point.

When we return to a euphoric, face melting Alt Season… remember what this feels like. 

Any October 2023 buyers will likely be over 60% down from their portfolio highs in April. 

Let this be a reminder of the importance of taking profit when it seems illogical that we won't continue to rip upwards.

The longer and higher this bull goes - the more important this advice becomes.

GTA 🤝 Crypto?!  

Now this is interesting. 

The rumour mill is a foot, and the word on the interweb is that Rockstar is exploring how to integrate crypto currency into perhaps the most anticipated game of all time - GTA 6. 

This game has been 11 years in the making, and it drops next year.

We often talk about catalysts. 

These catalysts range in severity. 

They begin with something as simple as a crypto game being bebo’d by an A-list celebrity…

And they go all the way up to the heights of a World of Warcraft level game ascending all of crypto gaming to Valhalla. 

GTA 6 adopting crypto into its economy would be a 8/10 on this scale. 

Seriously. 

Keep your eyes on this. 

New UK Government - what does this mean for Crypto?🇬🇧

The UK Government has changed for the first time in 14 years.

The left-centrist Labour party has emerged with a new PM. Keir Starmer.

But more importantly, what does this mean for crypto?

Well at this stage, similar to most of Labour’s policies, it is too early to say.

The Labour party have been handed the keys to number 10 through the sheer incompetence of their opposition. 

3 prime ministers in 1 term. PPE contracts being awarded by cabinet ministers to friends. Matt Hancock getting caught with his hands on his secretaries arse during the height of the pandemic… you get the picture.

Ultimately, this has made the Conservatives unelectable.

The flip side of this is that Labour have not needed to commit to details during the campaign trail. 

They’ve literally used one word. ‘Change.’ 

‘Vote for us because those lot are sh*t.’

Fair enough. And it's worked. 

Starmer won a monumental landslide, falling just shy of Blair’s ‘supermajority’ in 1997. 

This is also the worst performance for the Conservative Party in its 190 years history. Ouch.

So what does this mean for crypto in the UK?

The Bull Trap Take on Crypto in the UK (spoiler.. It’s really sh*t):

The facts are vague at this point. 

The Conservative’s outlined that they wanted the UK to become a ‘Crypto Hub’. 

But confusingly they then followed up this bullish statement by introducing a harsh policy delivered by the Financial Conduct Authority (FCA) that made crypto exchanges ensure that people have the ‘appropriate knowledge and experience’ to invest. 

What a joke. 

From personal experience, this involves every UK investor having to take a quiz on exchanges like Coinbase to determine whether they had enough understanding of crypto to be able to invest. 

FASCISTS.

So you can walk into a betting shop and lose your life savings at your own discretion… but you can’t invest £100 in $BTC without proving that you’ve got an understanding of the asset class?

The absolute cherry on the sh*t cake?

Take a look at this!

Reading between the lines, this is classic ‘fuck over the middle class’ policies. 

Earn over £100k a year? Do what you want with your money? 

Earn less? Then sign this statement outlining your a ‘Restricted Investor’ and agree to invest only 10% of your money in crypto. 

Refuse to sign? You are banned from buying crypto. 

These are disgraceful tactics that are designed to make it too difficult for new investors to get involved, and the only people who will suffer are those in the UK. 

So will Labour reverse these perverse regulations? 

It remains to be seen. All we know so far is that Starmer has confirmed that they will support the Bank of England’s digital pound plans. (CBDC)

We can talk about the dangers of CBDC another time, but with absolutely no direction on plans relating to this industry, we can’t help but feel that once again the UK is going to be late to the party. 

And what a great party it’s going to be. 

For all of you Chad’s in the UK (like us), the plan remains the same. Make money; buy your time and freedom back; build the life you want to live.

Our guess is that Starmer will remain non-committal for the foreseeable future as he assesses the landscape. 

What is true in all of this, is that Starmers Labour will almost certainly be the people to usher in regulation of crypto within the UK. 

What this looks like remains to be seen.

Can it be worse than the position the Conservatives left us in? 

We bloody hope not.

A Week of FUD: The German government, Mt Gox and what it means🗣️

Oh Germany, what are you doing? 

Haven’t you been reading The Bull Trap? 

YOU NEVER SELL ON A RED DAY.

Absolute paperhands. 

Don’t be like Germany folks. 

The German Government has sold $175 million worth of $BTC. 

No one is sure why, but this additional selling pressure has not helped the market in recent days.

On top of this, the infamous Mt. Gox (a defunct crypto exchange that went bankrupt in 2014) has begun to repay creditors.

You have to question the timing, don’t you? 

The exchange went bust in 2014 but was the largest in the world in 2013, accounting for 70% of all global $BTC transactions. 

According to reports up to 140,000 Bitcoins (worth $7.6 billion) will be repaid to creditors.

Last Thursday evening, Mt.Gox moved around 47,228 Bitcoins ($2.71 billion) from cold storage into a new wallet. 

The worry is, that all of this additional supply will drive prices lower. 

It’s a fair assumption, but for crypto veterans, this story has been circulating for literally a decade and usually rears its head when things are about to get interesting. 

It all feels like FUD. 

Indeed the Mt Gox wallet movement is true, but there is no guarantee as to what time schedule this selloff will occur. 

This does not alter the macro thesis. 

So for now, this goes straight into the FUD bucket.

That's all for this week folks! 

Enjoy your Sunday. 

Stay sharp.

The Bull Trap.