THE PHENOM CRYPTO LETTER

GM,

Welcome to this week's Phenom Weekly Update—your go-to guide for all the chaos, drama, and occasional brilliance in the crypto world. We'll sift through the noise (yes, including that one thread that blew up on Twitter for no reason) and bring you the real stories, important moves, and maybe even a meme or two. Let’s get into it.

Here’s what we’ve got this week:

• Wen BTC Halving Pump?

• PayPal is Building a Crypto Empire

• Trading Pod w/ @checkmatey

• Bitcoin Jesus Keynote Speech

Jump to :

• Reading Corner

• Blockbuzz

• Crypto Twitter

• Memes

Bitcoin During Halving Years

Halving years are historically major events for Bitcoin, reducing block rewards by half and often triggering bullish market cycles. Since we are currently in a halving year, lets compare 2024 to the last two halving years: 2016 and 2020.

• 2016: The year saw a slow and steady climb, with Bitcoin growing from ~$600 to a jaw-dropping ~$20,000 over 18 months. It was more of a marathon than a sprint.

• 2020: This halving was wild, fueled by the COVID-19 pandemic and the explosion of retail interest and global liquidity. Bitcoin skyrocketed from ~$9,000 to an all-time high of ~$64,000 by 2021. It was the bull run that made Bitcoin a household name.

• 2024 (so far): The halving happened this spring, but the post-halving price action has been relatively subdued so far. Historically, Bitcoin tends to consolidate for a few months then things start heating up.

Why This Matters:

• Supply Shock: Each halving cuts new Bitcoin supply, which historically leads to price increases as demand stays strong.

• Delayed Impact: In both 2016 and 2020, the real fireworks happened several months after the halving once weak miners capitulated. 2024 could follow a similar trajectory.

Final Thoughts: If history repeats, Bitcoin might still be in the “calm before the storm” phase. Previous halvings have set the stage for massive price rallies. Looking at the chart below, historically, September is a rough month followed by a very strong Q4. Patience may pay off!

Is PayPal Building a Crypto Empire?

PayPal seems to be quietly assembling the building blocks of a crypto empire, playing the long game to become a major player in the space. Here’s what’s happening:

1. ENS and .eth Addresses

PayPal and Venmo now allow users to send Ethereum-based tokens to ENS (.eth) addresses. This makes crypto transactions more user-friendly and accessible to their massive audience.

2. Growing $PYUSD Stablecoin

PayPal’s stablecoin, $PYUSD, has surged past a $1 billion market cap in just over a year. This positions PayPal to rival top stablecoins like Tether’s $USDT.

3. Crypto Payments for US Merchants

U.S. consumers can now use crypto at over 10.9 million online merchants via PayPal, with the platform smoothly converting digital assets to fiat for merchants. This bridges the gap between crypto and everyday commerce.

The Big Picture

PayPal is betting on a future where crypto is seamlessly integrated into mainstream financial systems. If regulatory clarity improves, PayPal may even offer high-yield options on $PYUSD, incentivizing users to hold funds on their platform. By leveraging their large user base and growing stablecoin, PayPal is positioning itself as a serious contender in the crypto ecosystem.

The long game? PayPal is building a potential powerhouse, making crypto as easy to use as fiat. The question is: will they dominate?

READING CORNER

A collection of longer form content we are consuming this week 

A great podcast from Messari on the impact of token unlocks

Bitcoin Jesus’ keynote. Its almost an hour long but worth a listen. His company has outperformed every company in the S&P (including NVDA) this year by betting on Bitcoin.

Long form trading podcast with Onchain analyst @checkmatey

BLOCKBUZZ

Quick Hitters from the week

• Robinhood's Crypto Strategy Thrives Amid Millennial Wealth Growth: Robinhood's push into crypto pays off as the platform captures the growing wealth of American millennials.

• Bitcoin Demand Shifts: While short-term holder interest weakens, long-term accumulation continues to rise, according to CryptoQuant.

• US Presidential Debate Sends Crypto Market Into Risk-Off Mode: Analysts note that the political uncertainty spurred a cautious sentiment among crypto investors.

• Tether, TRON, and TRM Labs Form Private Financial Crime Unit: Join forces to create the first-ever private sector initiative to combat crypto-related financial crimes.

• Friend.Tech Team Steps Back from Smart Contract Control: The platform's team renounces control of its smart contracts after experiencing stagnant growth.

• ENS Launches on PayPal adn Venmo: Send money with just ENS addresses

• Japan’s Three Major Banks to Test Cross-Border Stablecoin Transfer Platform: In a significant move toward blockchain-based finance, Japan’s top three banks are set to trial a platform for cross-border stablecoin transfers.

THE TWITTERVERSE

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

WAGMI

For the (crypto) Culture

Preach

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