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An Ethereum ETF has awoken the altcoin market…

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A quick brief - 

• The EVIL Bitcoin Cash-Carry Trade. What is it, and how is it affecting the market

• ETH/BTC has awoken. A look at what comes next
  

• Crypto Consulting Institute's Fast 5 Guide to Altcoin Investing

Let’s crack in!

There are some pretty wild reasons flying around to explain why prices are down outside of the normal Time-based Capitulation we see every 4 years post halving…

The mysterious “Cash and Carry Trade” is the latest buzz phrase to explain this

Let’s drill down, in simple terms

It's not some evil force suppressing prices, it's actually a sign of a healthy market!

What is it?

Here's the lowdown:

• Imagine traders as HUNTERS that seek profit from finding inefficiencies 

• There is a general consensus that Bitcoin will sit at a higher price over a long enough time horizon so the market is net long, but that doesn’t mean there are not ways to make money in the short term 

• There are two ways to gain price exposure to Bitcoin. Via spot (ETF), and via futures. (Futures are where you bet on price going up or down) Traders use them both. 

• On Futures there are positive funding rates (+10% annualised) meaning the market is bullish on Bitcoin (long-term optimistic) and participants are willing to pay extra (a premium) to stay that way via leverage. 

• This creates an arbitrage opportunity: buy Bitcoin (spot or ETFs) while simultaneously selling futures contracts (shorting). 

• The beauty? You're hedged against price movements, up or down and pocketing the Premium being paid to you from longs. It's all about capturing that sweet yield.

• This strategy injects buy pressure on the spot market (ETFs too!) and adds short positions to futures, boosting overall market depth, volume, and liquidity - a win for everyone!

• These "shorts" are a natural part of the market dance, and the real story is the lack of massive new buying pressure to send Bitcoin soaring.

In summary, the Cash and Carry isn't some monster suppressing the price in perpetuity, it's a sign of a lively market. What we are missing is the natural build of Bitcoin demand to move to new highs. It will come.

Now you're in the know!

The Crypto Consulting Institute's Fast 5 Guide to Altcoin Investing…

We are keeping the macro and TA light in this one. For this week’s newsletter we wanted to put together a 5-point Guide to help you better invest in Altcoins to nail this next phase of the Bull Market

Quickly, I wanted to show you the most important chart in Crypto right now…ETH/BTC

The Ethereum ETF launch is slated for July 2nd and we are seeing Ethereum strengthen significantly against Bitcoin. While we have been fooled before, it’s not a stretch to speculate that ETH has bottomed against Bitcoin.

What we want to see here is ETH use the higher-low it has created and punch out of the downtrend to create its first higher-high since August 2022

Implications for alts here are big. We are already seeing L2’s strengthen after the altcoin bloodbath this past week and historically when ETH/BTC is moving, alts are too.

Hunch here is that we are seeing compression before expansion. Sentiment wise, Alts are thought to be dead, when this is pretty normal for post halving periods. Expect to see wild rebound from the extreme lows, with some retesting their yearly open prices.

As a long term investor, I’m a buyer. 

A quick reminder for our Mastermind clients reading this, that our Fundamental Analyst, Tristan Hazelwood will be putting together a dynamic Top 10 low caps list with massive potential. I can’t wait for this, he is a wizard!

Ready to explore the exciting world of altcoins? We are here to equip you with the knowledge you need to make informed investment decisions and fast track your decision making.

Let’s go!

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