🌊 Tuesday Bitcoin Flows

Together with

• Mt. Gox is going to begin distributing Bitcoin to creditors in early July. Some people think that’s contributing to the current sell-off. Alex Thorn at Galaxy Research says the sell-pressure will be less than expected.

• Julian Assange is going to be released after striking a plea deal with US prosecutors.

• Joe Consorti at Theya breaks down the Bitcoin bloodbath price action, using some key on-chain metrics.

• Avetis Muradyan at IM1776 explains what we can learn from the East India Company, the ‘company men’ who were part of the sprawling spice trade, and their modern equivalents.

• The Fed published a paper arguing that ‘price dispersion’ caused by inflation(i.e. the same good being priced differently by various sellers) is somehow a good thing. Also, we’ve always been at war with Eastasia.

• Louisiana passed a bill to protect the right to custody Bitcoin, and also ban CBDCs.

• Bitwise’s Matt Hougan explains how we’re exorcizing several demons that have long haunted Bitcoin, concurrently (GBTC, Mt. Gox, Silk Road seizures).

• Joel Kotkin at Quillette has a cheery piece about how housing inflation is going to usher in ‘neo-feudalism’ in Western countries.

The Whales were the big beneficiaries of the chaotic reshuffle over the past day. Must mean all the big boys are buying? Well, not quite …

The food chain can only tell us so much, and not all Whales are created equal.

And if you’ve been in a cold sweat wondering why BTC is falling, then here’s part of the answer: the miners are selling off, big time.

Not a great day for the mining stocks, but they faired relatively well considering the size of the BTC drawdown.

ETFs are great, but for some Bitcoiners there’s no substitute for the real thing.

And the next best thing after buying Bitcoin, is storing it with an awesome hardware wallet that’s both easy to use, and has state-of-the-art security.

Blockstream’s Jade is definitely that.

I’m a Jade user myself, and can tell you I sleep well at night knowing my BTC is safe in the deepest of cold storage.

Check the Jade out here, and use promo code “Flow State” for 10% off.

🥇BlackRock

Larry Fink appears to be physically incapable of taking an ‘L’. Another net-zero day of flows for IBIT, despite the rest of the field getting torched.

🔻Fidelity

For FBTC, it was more bloodletting. They bade farewell to another 590 BTC ($35m) yesterday. That’s 7.5k BTC gone in seven trading days.

🔻Grayscale

No surprise that GBTC rounded out the day’s biggest movers, with outflows of 1501 BTC ($90.4m). They’ve now lost more than 340k BTC since launch.

🧮 Total

Monday, bloody Monday. The outflows came to 2.9k BTC ($175m). That’s seven outflow days in a row, and 9 of the past 10.

We need to think bigger, ladies and gentlemen. We’re in the midst of a 15 year productivity growth slump, with no obvious solutions in sight.

Maybe you think the coming AI singularity will be the panacea. I’m not so sure.

Anyway, I say when in doubt, ask the experts. And yesterday I came across this newspaper clipping, quoting a great idea from Mr. Lee Kuan Yew, the father of Singapore and economic growth GOAT.

His productivity pitch: air-conditioned underwear.

This is the kind of ‘deep tech’ investment I can get behind. And are you going to argue with these results? Didn’t think so.

Those are the Flows this Tuesday.

Thanks for reading, and I’ll see you tomorrow.

Julian Fahrer
Editor-in-Chief

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