GM fellow Asterials. So Bitcoin Pizza Day happened 🍕🍕🍕 Hopefully everyone had their fair share. And if you do not know why it is called Bitcoin Pizza Day here is a little fun fact

It’s TUESDAY people lets get right to it🔥

• 🇺🇸 US Debt deal and its potential effect on Bitcoin

• 💸 DCG's Debt Dilemma: A Crypto Drama Unfolds

• 📈 Surge in tokenised securities

US Debt Deal and Its Potential Effect on Bitcoin Price: What Crypto Investors Need to Know

As the US Treasury works to resolve the debt limit situation and rebuild cash balances, there are concerns about how it might affect dollar liquidity and, consequently, the cryptocurrency market. 💰

Let's explore the details and gain valuable insights for crypto investors.🔥

The Link Between US Debt Deal and Bitcoin Price:

The US Treasury's actions to rebuild cash balances can have ripple effects on various financial markets, including cryptocurrencies.

Analysts suggest that a potential debt deal could lead to a decrease in dollar liquidity, which might put downward pressure on the price of Bitcoin.

Understanding this correlation is crucial for crypto investors who closely monitor market dynamics.

Impact on Crypto and Risk Assets:

As money flows out of cash and risk assets into US government bonds due to a debt deal, there could be a potential negative impact on the crypto market.

This shift in investment preferences might lead to a decline in Bitcoin and gold prices. 📉

It's essential to keep an eye on how market participants react to these developments and assess the implications for your investment strategy.

Rebuilding Cash Balances and Bitcoin's Response:

Once the debt limit is raised, the US Treasury is expected to issue government bonds to rebuild its cash balance. 👀

This issuance can reduce liquidity in the system and push bond yields higher.

Interestingly, Bitcoin tends to move in the opposite direction of bond yields, and investors should be mindful of this relationship while assessing potential price movements.📈

Potential Scenarios and Market Sentiment:

Market consensus suggests that a default would trigger panic selling and a rush for cash, reminiscent of the March 2020 crash. 🔥

Conversely, a debt deal is expected to fuel risk-on actions.

Stay informed about the latest market sentiment as it evolves and adapt your crypto investment strategy accordingly.

Additional Considerations:

Some analysts speculate that the Treasury's issuance of bonds post-debt deal could lead to a lack of USD funding. 💸

This situation might have implications for commercial real estate assets funding or junk bond issuers, potentially impacting long-end rates and steepening US rates.

Such dynamics could benefit safe-haven currencies like JPY and CHF. Monitor these developments closely to gauge their potential ramifications.

Conclusion:

As the US debt deal takes shape, it's crucial for crypto investors to stay informed about its potential implications on the price of Bitcoin.

The interplay between dollar liquidity, risk assets, and market sentiment can significantly influence the crypto market.

By understanding these dynamics, you can make informed investment decisions and navigate the evolving landscape with confidence.

DCG's Debt Dilemma: A Crypto Drama Unfolds

Picture this: Gemini, the suave crypto exchange, has caught wind that DCG missed a whopping $630 million payment to Genesis.

That's like misplacing your crypto keys and watching your investment disappear into thin air.

But fear not, my friends, as Gemini is swooping in to save the day. They're working tirelessly with Genesis, DCG, and creditors to provide a little something called "forbearance."

It's like giving your friend an extra day to repay that pizza you lent them, except we're talking millions here.

In the midst of this high-stakes game, Gemini's very own CEO, Cameron Winklevoss, has unleashed some serious legal threats.

He's waving his lawyer sword, ready to sue DCG's CEO, Barry Silbert, and DCG itself over a hefty $900 million loan repayment.

But wait, there's more—Gemini and other parties involved are cooking up a spicy reorganisation plan that doesn't need DCG's stamp of approval.

Now, here's where it gets interesting.

The success of this alternative plan depends on whether the parties involved believe that DCG will play fair and negotiate in good faith.

Will they find common ground? Will they settle their differences? Only time will tell.

In the meantime, Gemini is gearing up for battle. They're preparing to file a claim seeking the return of over $1.1 billion in digital assets from Genesis.

And let's not forget, Genesis has filed a request for an extension in their Chapter 11 proceedings.

To add fuel to the fire, Genesis finds itself indebted to the tune of over $3.5 billion.

We're talking creditors like:

• Gemini

• Cumberland

• Mirana

• MoonAlpha Finance

• VanEck’s New Finance Income Fund

It's a virtual who's who of the crypto world, all vying for their piece of the digital pie.

Surge in Tokenised Securities: Ethereum, Polygon, and Gnosis Hit $225M Market Cap

Tokenisation, the process of issuing financial securities such as stocks and bonds on the blockchain, is revolutionising the way we think about traditional assets.

Esteemed firms like:

• Matrixport

• Backed Finance

• Ondo

• Franklin Templeton

Have taken the plunge, creating ERC-20 tokens that represent government bonds or ETFs on various blockchain networks.

The allure of this novel approach lies in its ability to enhance liquidity, increase accessibility, and streamline the settlement process.

At present, Ethereum stands at the forefront of tokenised securities activity, serving as the primary playground for this burgeoning market.

Among the key players, Ondo and MatrixDock have emerged as dominant forces, offering tokenised U.S. government bonds and cutting-edge digital asset management tools.

Their expertise has propelled the adoption of tokenised securities, shaping a path towards a more inclusive and efficient financial ecosystem.

In an exciting turn of events, Ripple has recently acquired Metaco, a Swiss digital asset custody company that specialises in tokenisation tools and custody infrastructure for institutional investors.

This strategic move underscores the growing importance of tokenisation and its potential to reshape the future of finance on a global scale.

Tokenisation of securities brings forth a host of advantages.

• Instantaneous Settlement

• Reduced fees

• Seamless integration

However, to ensure its continued growth and widespread adoption, regulatory clarity and interoperability with decentralised finance (DeFi) platforms are crucial.

As we witness the meteoric rise of tokenised securities, it becomes evident that the world of finance is undergoing a profound transformation.

The potential to unlock new investment opportunities, democratise access to traditional assets, and reshape the way we engage with financial markets is truly awe-inspiring.

Regulatory frameworks must adapt to foster innovation while ensuring investor protection, and collaboration between blockchain platforms and DeFi protocols will be pivotal in driving the future of tokenised securities.

✨Bonus News✨

• Tornado Cash hacker decides to give the DAO a second life. Looks like he has some heart after all… with a hefty fee.

• Bitcoin Pizza day results in tons of rugs. Well people always ape into the hype.

• BlockFi sharing their reorganisation plan too early! Well I think investors liked that.

Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.