🥛 Global liquidity boom: Is your portfolio ready? 🌊

PLUS: ETH ETF flows one week in 👀                                                                                                                                                                                                                                                                                                                                                                                                                 July 31, 2024 | [Read Online]( 🥛 Global liquidity boom: Is your portfolio ready? 🌊 PLUS: ETH ETF flows one week in 👀 [fb]( [fb]( [fb]( [fb](mailto:?subject=Post%20from%20Milk%20Road&body=%F0%9F%A5%9B%20Global%20liquidity%20boom%3A%20Is%20your%20portfolio%20ready%3F%20%F0%9F%8C%8A%3A%20PLUS%3A%20ETH%20ETF%20flows%20one%20week%20in%20%F0%9F%91%80%0A%0Ahttps%3A%2F%2Fthemilkroad.beehiiv.com%2Fp%2Fglobal-liquidity-boom-portfolio-ready) Today’s edition is brought to you by Moonshot - the easiest way to discover and buy new memecoins, deposit with Apple Pay, and start trading in seconds – never miss another rally, [download for free.]( [breaker] GM. This is Milk Road, the crypto newsletter that's as crisp as a chilled 7-Up on a hot day. Here’s what we got for you today: - ✍️ Global liquidity is picking up - ✍️ $ETH ETF flows one week in - 🎙️ The Milk Road Show: [Should You Sell $ETH and Buy $SOL? w/ Lark Davis]( - 🍪 DraftKings has decided to shut down its NFT business [Prices as of 9:30AM ET. Click here for our Fear & Greed Index]( [breaker] GLOBAL LIQUIDITY IS PICKING UP 🌊 Hey macro munchers! Even with the FED holding interest rates steady, we've got thrilling news: global liquidity is still soaring. 📈 [Source: Capital Wars]( Last week, global liquidity jumped up by a whopping $1.11 trillion, hitting an all-time high of $172.79 trillion. Why care about this massive $172T liquidity pool? More money means cheaper loans and mortgages, putting extra cash into businesses and your pockets. 🤑 This fuels economic growth and supercharges the market! Remember our past [Milk Road PRO report](? We believe global liquidity drives crypto markets more than the Bitcoin halving (though that’s cool too). 👍 Knowing global liquidity’s status helps predict crypto market direction… and right now, it’s pointing up! 🚀 But will this trend continue? Zooming out Looking at the last 15 years, the trend is clear. There's plenty of room left in the current liquidity cycle. [Source: Capital Wars]( The annual growth rate in global liquidity is up 3%, showing steady long-term growth. And what's really exciting is the 3-month growth rate at 8%, hinting at a significant increase in liquidity in the coming months. Rising liquidity levels are like a high tide that lifts all boats, especially risk assets like crypto. 🌊 Check out this chart showing the correlation between Bitcoin and global liquidity: [Source: Capital Wars]( When global liquidity rises, [Bitcoin]( tends to follow (and sometimes even overshoot it 🌠). The same happens on the way down. In Bitcoin’s early days, even a small liquidity injection caused massive price swings. While the market has stabilized somewhat since then, liquidity changes still lead to significant price swings: - Since 2022, global liquidity has moved from $158T to $172T, a 8.86% increase. - During the same period, Bitcoin surged from $16k to $66k, a 312.5% increase. The correlation between these movements is becoming increasingly evident! 🥛 Milk Road take: At some point, global liquidity will peak and reverse. 🎢 The key is to be aware of this and not get caught holding your high-risk assets when the tide turns. Liquidity is a crucial indicator to keep an eye on, helping you avoid riding your investments all the way down into the next bear market. That’s why every Tuesday as part of our [“Where are we in the cycle indicators”]( we dive into global liquidity, plus 4 other metrics so you can see when the cycle top is approaching. This is a “PRO only” feature though so if you want the inside scoop to stay ahead of the game, [join here.]( Stay liquid, stay savvy, and keep those portfolios pumping! 🚀 [THE EASIEST WAY TO BUY MEMECOINS]( [Moonshot]( is the easiest way to discover, buy, and sell memecoins. Never miss another memecoin again, make cash deposits with Apple Pay, credit & debit cards, and bank transfers in seconds. The best part? Moonshot even covers your gas and priority fees. See why 10,000+ users are already using Moonshot! [Download for free today]( [breaker] ETH ETF FLOWS ONE WEEK IN 👀 We had the almighty ETH ETF go live last Tuesday, so we figured it's a good time to check in on our 7 day old baby… And it looks like we finally have more milk going in than doo doo coming out! (since day 1) 💩 [Source: Farside Investors]( Checks Math Yup, yesterday, we saw net inflows of $33.7M across the board. Not too shabby, right? AND here’s the kicker: Even though Grayscale’s $ETHE ETF still experienced a big outflow of over $120M yesterday, their selling spree has slowed down. Now let’s take a look at this spicy chart comparing asset loss since conversion for GBTC and ETHE. [Source: Farside Investors]( Both funds have seen significant declines, but ETHE has been on a steeper slide. SO, how long could the ETHE outflows last? [Source: Arkham Intelligence]( Well there's roughly 83% left, giving it about 33% to go until it tapers off like GBTC did at 50% (as seen in the conversion comparison above). That 33% is 1M [$ETH](, which is currently worth $3.3B in USD and given average daily outflows of $307M it would take roughly 11 more days to hit the 50% mark. Keep in mind, that's just crunching straight numbers. 🔢 How it actually plays out will vary and some say it may take a few weeks to get past all the $ETHE outflows. Now, all these ETF outflows in the first week and lack of price action on $ETH itself might have you asking is the juice worth the squeeze? 🍋 Well if you’re feeling that and wondering if $SOL may be the better play, we have just the podcast episode for you! Tune into today’s episode of The Milk Road Show where we explore these 3 burning questions with [Lark Davis](: - Has the $ETH ETF been a failure? - Is Solana the new Ethereum? - What are his price targets for $ETH & [$SOL](? [YouTube]( | [Spotify]( | [Apple Podcasts]( [breaker] BITE-SIZED COOKIES FOR THE ROAD 🍪 [Arbitrum is expanding its Orbit tech stack to networks beyond Ethereum, following a governance proposal with 83% support from holders](. The expansion aims to accommodate requests from developers wanting to deploy Orbit on chains like Bitcoin, BNB Chain, and Cosmos, potentially increasing revenue for the Arbitrum ecosystem. [Cameron Winklevoss criticized Kamala Harris' crypto 'reset' as empty promises and called for the removal of SEC Chair Gary Gensler.]( Despite Harris' pivot on crypto, analysts believe it is unlikely to significantly influence voters. [Mt. Gox moved over $2B worth of Bitcoin to a new address, part of its $9B payout process to creditors.]( The wallets associated with Mt. Gox still hold about $5.29B worth of Bitcoin. [DraftKings has decided to shut down its NFT business]( due to ongoing legal issues, including a class action lawsuit alleging their NFTs are unregistered securities. The company will offer buyouts to Reignmakers players, allowing collectors to still access and transfer their NFTs​​. [Roxom, the first Bitcoin-native stock exchange, has launched with $4.3 million in funding led by Draper Associates.]( Roxom aims to revolutionize global financial markets by enabling trading of stocks, commodities, and futures in Bitcoin. [Wanna team up with the Milk Man?]( We currently have 2 positions open – check ‘em out and [apply here!]( [breaker] MILKY MEMES 🤣 [Source: @0xjune_]( [Source: @naiivememe]( [Source: @wallstreetbets]( [breaker] RATE TODAY’S EDITION What'd you think of today's edition? [🥛🥛🥛🥛🥛 F**king great]( [🥛🥛🥛 Meh, do better]( [🥛 You didn't bring the heat]( ROADIE REVIEW OF THE DAY 🥛 VITALIK PIC OF THE DAY [breaker] DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. [tw]( [ig]( [yt]( [tk]( [in]( Interested in reaching smart readers like you?  [Sponsor Milk Road]( Update your email preferences or unsubscribe [here]( © 2024 ImpactDM Inc. operating as Milk Road 1257 Dundas St W Toronto, Ontario M6J1X6, Canada [Terms of Service](