A BIG investor and a new record-breaking dog
While Morgan Stanley is investing in Bitcoin, Doge is getting greener!
Hi friend!
It’s Vanessa from buidlbee. Your one-stop destination for everything crypto 🔥
As you already know, it’s our goal to make sure you make it with crypto, and how can you do that without being well-informed? Thank goodness you have me to bring important daily updates on the industry 😎
Here’s what’s new:
It’s a whale, it’s a shark, it’s Morgan Stanley investing in Bitcoin! 🚀
Old Doge is learning new tricks 📈
Go big or go home!
Recall how the market has been going crazy in the best way and Bitcoin has been on the rise since Friday? Well, there might be more to it than we thought. One of the largest investment banks in the world, Morgan Stanley, is slowly acquiring its own share of BTC through Grayscale Bitcoin Trust (GBTC)!
The next question is how this concerns lil’ old investors like us or why it’s monumental to the crypto industry as a whole. 🤔 As much as we love crypto and all it stands for, it’s still a relatively small industry on the global economic scale and if the big investors get into the market, it increases the trust and value of the concept as a whole.
Furthermore, it is very important that there is liquidity inflow in the market, particularly on the gloomy days of Crypto Winter. We oftentimes hear that the whales control the market, and although the newly purchased Bitcoin is not enough to greatly impact the market cap of ⁓$331.74B, it’s enough to convince other big players to get with the program.
Morgan Stanley is adding a little razzle-dazzle to their traditional portfolio by purchasing $3.6 million shares in GBTC, as confirmed by their representatives, and is hoping to have at least 1% of the said portfolio allocated to BTC. This isn’t their first rodeo with GBTC shares, as they once experimented with Bitcoin investment.
At the time, the company bought $240M worth of shares. Their recent investment, which pales in comparison, is more or less a symbolic gesture to offer hope in the midst of the cold winter and failing market. The purchase already created recognizable support for Bitcoin which crossed the $17,000 mark after the news was announced.
Of course, nobody benefits from this more than Grayscale, whose parent company, DCG is clearly going through a lot. (P.S. You would know if you read my last mail, so go check it out! 😏) Grayscale being the largest cryptocurrency fund operator in the world, if assets from GBTC need to be sold to pay off Genesis debt (another subsidiary of Grayscale), it will undoubtedly negatively affect the market as a whole, as more than 3 million ETH and more than 630,000 BTC will re-enter the market!
According to a letter to Grayscale’s investors, the company is exploring options to return some capital to GBTC. This is what makes the Morgan Stanley purchase so important, as it will not only add stability and faith to Grayscale but also give hope to the crypto industry as a whole, thereby attracting more large capital from institutional investors over time. 📈
Oops, DOGE did it again
It’s still so early in the year, but Doge has already hit a three-week high, going from $0.06709 in the middle of December to $0.07697 in mid-January! We all aim to grow and progress as quickly as this altcoin, but what’s the real reason behind its consistent recent growth? 🧐
Doge remains the best meme coin by market cap, according to CoinMarketCap, coming in at $10.54B, regardless of numerous competitors like BONK, SHIB, QUACK, and more recently, Wiki Cat. I’m sure just like the rest of the market you also tied its popularity to the formidable patriarch, Elon Musk, but why then does the coin keep growing even after his exit as Twitter’s CEO?
The token reached its all-time high on May 8, 2021, upon Elon’s public support of the coin. It sat at a pretty figure of $0.682, which is -800% of the coin’s current value of $0.07697.
Apart from the recent green charts we’ve all been enjoying, Doge is heavily affected by the U.S. economy. Recall that Bitcoin peaked at $17,000 for the first time since December 16, 2022, which gave Doge a nice little boost. Also, a report released by the Federal Reserve Bank of New York's Microeconomic Data Center shows that annual inflation expectations continue to decline as the Federal Reserve plans to lower it to 2% from the current 5%.
As of the time I am writing this crypto love letter, Dogecoin is trading at $0.07697 per coin, down 0.48% from 24 the previous 24 hours and up 7.22% from a week ago. Its market capitalization is currently equal to $10.54B, thereby making it the ninth-largest token. With almost a decade in the market, one starts to wonder why this coin hasn’t hit the $1 mark yet.
Analysts at The Motley Fool believe Doge can only hit the pass mark on two conditions:
Recovery of the crypto market…duh! 🤷♀️
Elon Musk’s renowned twitter fingers which have previously impacted the coin’s value. See examples here and here.
So, is Doge expected to reach our $1 expectations? I’m not gonna lie to you, friend, this seems very unlikely. Memecoins aren’t exactly a hit and popular economist Steve Hanke described them as valueless and a means for money laundering. On the other hand, if Doge can turn its meme lemons into lemonade, this would increase its market capitalization to $132B, making it third in this parameter after Bitcoin and Ethereum.
When it comes to value-added propositions, this memecoin’s community is unique to others. Community members continue to foster the token and develop options to promote it. The latest of such is a new promising project called Dogechain proposed by a community of the same name.
It is a scalable smart contract platform for dApps. The platform is expected to allow Doge to be used for transaction fees, provide Dogecoin liquidity to decentralized exchanges (DEX), allow users to mint NFTs using the token, and also allow coin holders to lend Dogecoin and thus earn passive income.
Not too shabby for a memecoin. 👏 In the popular words of Mr.Musk…
DOGE to the moon 🚀
Now that all is said and done…remember a great friendship is built on mutual understanding, not one-way conversations. 🙄 So make sure you drop a comment with your thoughts and share this with other friends as well. See you tomorrow with more hot crypto takes! 🔥