THE PHENOM CRYPTO LETTER

GM,

Welcome to the Phenom Crypto Weekly Update, where we breakdown a few of the top stories in crypto, share the best of the Twitterverse, news, content we like and more!

Thanks for reading this week. Lets dive in…

Here’s what we’ve got this week:

• FTX Drama Queen Goes to Jail

• Is this Bitcoin Cycle Like The Rest?

• Will BTC Options Change the Game?

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• CONTENT WE ARE READING

• NEWS

• CRYPTO TWITTER

• MEMES

FTX’s Drama Queen Gets 2 Years

Remember Caroline Ellison? She was the CEO of Alameda Research, the company at the center of the FTX collapse. Well, she’s officially been sentenced to two years in prison for her role in the financial disaster, but there’s a twist. 🌀

Ellison didn’t just sit quietly; she cooperated big-time with the prosecution, helping them build their case against Sam Bankman-Fried. This move likely saved her from what could have been a massive 110-year sentence. Yep, she was facing triple digits in the slammer, but two years suddenly doesn’t seem so bad, right? 🙃

Here’s a quick rundown:

• The Crime: FTX, one of the biggest crypto exchanges, went from hero to zero in record time. Billions of dollars vanished, leaving a trail of investors crying into their Bitcoin wallets.

• The Fallout: Ellison and SBF (yes, they had a romantic past, adding even more spice to this drama) were at the center of the meltdown, with shady business practices and risky trades causing the company to implode.

• Ellison’s Role: As the head of Alameda, she played a huge part in the downfall. But by cooperating with authorities, she earned herself a plea deal, which probably had her breathing a sigh of relief.

• SBF's Trial: Ellison’s testimony was crucial in putting SBF away for 25 years.

In the end, this is a classic story of how greed, love, and crypto can make for one epic collapse. Couldn’t have written it better for a Soap Opera.

Bitcoin’s Halving Cycle: Get Ready for the Banana Zone

If history’s anything to go by, we’re about to enter the next big $BTC cycle—and it’s starting this month. September’s last week is expected to kick things off, with signs pointing to the same wild pattern we’ve seen before:

• Pre-Halving Pump: Just like in past cycles, we’ve already seen a 100-150% rise before the halving even happens. It’s not front-running; it’s just how $BTC rolls. 🤑

• Trough of Despair: The post-halving phase can feel like a letdown when prices don’t rocket immediately. Expect panic sales as impatient investors bail out. 😱

• Weak Hands Exit: After some initial selling pressure, only the strong survive. Miners adjust their output, which tightens the supply. The real action begins after that. 💪

Oh, and here’s a little fun fact: Bitcoin has never closed below the 50W EMA after a halving without making new near-All-Time Highs. So, there’s that.

What to Watch For:

1. Fed Policy: We’re looking for a 100bps of rate cuts by mid-2025. What Powell says next matters more than the immediate cuts.

2. Election Vibes: Trump’s potential return could push pro-crypto legislation, like FIT21, through Congress. 🗳️

3. Market Shifts: Crypto is breaking free from the Nasdaq’s influence. As tech cools down, money could shift into alternative assets like $BTC.

The pieces are falling into place, and all eyes are on $64k for a major breakout. A daily close above that signals bulls are ready to charge. A weekly close at $69k? That’s your official bull market flag. 🚀

SEC Approves Options on iShares Bitcoin ETF

It’s official: the SEC has approved options trading on the iShares Bitcoin Trust ETF (IBIT), marking a huge step forward for Bitcoin adoption. While the OCC and CFTC approvals are still pending, the SEC’s nod suggests the hard part is done. 🏆

Why Does This Matter?

• New Liquidity: Options dealers will hedge positions by buying/selling Bitcoin or IBIT shares, creating a constant stream of trades. More liquidity = less volatility. 🏄

• Institutional Capital Inflow: Tactical hedging strategies will finally allow big institutions to confidently jump into Bitcoin, boosting market depth and credibility. 💼

• More Strategy Options: US investors previously had limited BTC options, but IBIT unlocks advanced strategies like covered calls and cash-secured puts. Funds can now even create BTC-backed covered call products, adding layers of income potential. 📈

• Potential Gamma Squeeze: The unique scarcity of Bitcoin means it’s primed for some serious upside when options dynamics kick in. Unlike stocks, where more supply can be created, Bitcoin’s fixed cap could make future rallies stick longer and go higher. 🚀

IBIT options aren’t just a financial tool—they could reshape how investors, especially institutions, engage with Bitcoin. Buckle up, the Bitcoin ETF market is about to get a lot more interesting!

READING CORNER

A collection of longer form content we are consuming this week 

NEWS

Quick Hitters from the week

• Ellison Sentenced in FTX Fraud Case: Sam Bankman-Fried's ex-girlfriend, Caroline Ellison, receives a two-year sentence for her involvement in the FTX fraud.

• Visa to Facilitate Fiat-Backed Tokens on Ethereum: Visa's new tokenized asset platform will assist banks in issuing fiat-backed tokens, leveraging smart contract technology on Ethereum.

• BingX Exchange Hacked for $43M: Hackers drained over $43 million from BingX, moving the stolen funds to decentralized exchanges.

• Turkey Pauses Stock and Crypto Tax Plans: Turkey shelves additional tax proposals, including those affecting crypto, according to Vice President Cevdet Yilmaz.

• Bhutan Holds $828M in Bitcoin: Arkham data reveals that the government of Bhutan possesses $828 million in Bitcoin.

• Bitcoin’s Bottom Weakens as Whales Accumulate: Whale wallets increase by 3%, while smaller BTC wallets grew by 75%, but the middle class of Bitcoin holders shrinks.

• Silvergate’s Closure Linked to Regulatory Pressure: A former executive claims Silvergate's shutdown was driven by regulatory pressure, not by an inability to handle bank runs post-FTX.

• Polymarket Eyes Token Launch Amid $50M Fundraising: The decentralized prediction market is reportedly in talks to raise $50 million and considering launching its own token.

• Celestia Foundation Secures $100M: The Celestia Foundation raises $100 million, furthering its development in the blockchain space.

THE TWITTERVERSE

A collection of the most interesting stuff on Crypto Twitter this week

MEMES

For the (crypto) Culture

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