Weekly Pulse #21: July 22nd – 28th

Crypto Week – A lookup at the Bitcoin Conference 2024 Nashville

Trump Captivates Crowd at Historic Bitcoin 2024 Conference

Highlights of Trump’s speach:

• Will prepare a clear regulation within 100 days
• Bitcoin is likely to overtake gold
• On day 1 will fire Gary Gensler and release Ross Ulbrich
• “Never sell your BTC”
• Bitcoiners saw inflation before everyone else
• The danger to the dollar comes from Washington, not from Bitcoin
• Strategic BTC reserve stockpile, starting with the already owned 200 000 BTC by US.

Former President Donald Trump headlined the groundbreaking Bitcoin 2024 conference held last week in Nashville, TN in front of an enthusiastic audience. As the first major Bitcoin event to feature a prominent American politician as a keynote speaker, Trump’s appearance represented a historic moment for cryptocurrency.

During his speech, Trump outlined policy proposals demonstrating his administration’s supportive stance towards Bitcoin, if elected again in 2024. He stated intentions to fire current SEC Chair Gary Gensler on day one for inhibiting crypto innovation, in addition to appointing a new SEC Chair more open to the ecosystem.

The former President also committed to transforming the U.S. into a global Bitcoin mining hub, while preventing any government-sponsored Central Bank Digital Currency from being established. Trump further promised to free imprisoned Silk Road founder Ross Ulbricht and protect financial privacy rights.

While Trump occasionally used “crypto” instead of “Bitcoin” specifically, speechwriters included talking points like comparing Bitcoiners to revolutionaries which drew applause. However, Trump did indicate needing to appease the community until after the next election, suggesting a political strategy and possible knowledge gap around Bitcoin’s full capabilities.

10 U.S. Senators Attend Alongside Trump and RFK Jr.

The Bitcoin 2024 event itself demonstrated expanding political recognition of cryptocurrency’s growing influence. In addition to Trump’s keynote, over 10 U.S. Senators appeared, including Senator Cynthia Lummis who has spearheaded several crypto-friendly laws.

Long-shot presidential candidate Robert F. Kennedy Jr also spoke positively on Bitcoin’s future, proposing to add as much BTC as the U.S. national gold reserves if elected. Kennedy Jr. also advocated eliminating capital gains tax on cryptocurrency returns.

Lummis and Kennedy Jr.’s participation underscores Bitcoin’s accelerating momentum and how both political parties realize the ecosystem can no longer be ignored.

BlackRock Executive Confirms Institutional Interest

Michael Mitchnick, BlackRock’s Head of Digital Assets, reiterated that their clients are accumulating Bitcoin. He emphasized, “there’s very little interest today beyond” Bitcoin and Ethereum. Mitchnick expects further adoption from pension funds over the coming years.

First Ethereum ETFs Launch

This past week also saw the long-awaited launch of Ethereum exchange-traded funds (ETFs) in Canada. The ETFs traded over $1 billion in volume on the first day. Significant activity around these launches demonstrates investor enthusiasm.

And Bitcoin ETFs saw early growing pains before accelerating over the past year. So patience will likely benefit Ethereum investors with these new products.

Wisconsin Pension Allocates to Crypto

Wisconsin’s $120 billion state pension fund recently announced intentions to invest $30 million directly into cryptocurrencies. They join a growing list of pension funds testing the crypto waters like Michigan’s and New Jersey’s funds.

Japan’s massive $1.8 trillion pension fund is also exploring potential crypto allocations. These decisions by traditionally conservative institutional investors speak volumes about Bitcoin’s improving reputation.

Weekly Legacy Markets Recap

Major Index Performance

The Dow Jones Industrial Average climbed 1.64% this week to close at 40,589.34 on Friday. Gains were driven by a bullish inflation report and expectations that the Federal Reserve may cut interest rates. The S&P 500 and Nasdaq also posted solid weekly advances.

Top Movers

Several major companies saw significant stock price movements this week following earnings reports:

• 3M (MMM) shares jumped 23% to a 52-week high on better-than-expected Q2 results. The company topped revenue and earnings estimates.
• Dexcom (DXCM) stock plunged 40.7% after the medical device maker missed Q2 revenue expectations and issued disappointing guidance.
• Coursera (COUR) shares spiked 44.7% as the online education company beat Q2 revenue forecasts, although it reported a wider-than-expected loss.
• Newell Brands (NWL) stock surged 40.5% after the consumer products company exceeded Q2 earnings estimates.
• Boston Beer (SAM) shares rose 7.5% despite soft Q2 results as the brewer reaffirmed its full-year outlook.

Summer Olympics Boost

With the 2024 Paris Olympics underway, several major sponsors and local businesses are benefiting. Nike launched Olympics-themed products, while Ralph Lauren designed Team USA uniforms. Airbnb is seeing a surge in local bookings. However, Delta Air Lines expects a $100 million loss from reduced summer travel to Paris.

Federal Reserve Meeting

All eyes will be on the Federal Reserve next week as policymakers are widely expected to raise interest rates by 75 basis points. The decision will impact mortgage rates, credit card rates, and broader lending conditions. Investors will closely parse the Fed’s statement for clues about future rate hikes.