Bitcoin supply shock incoming?

CRYPTO
Bitcoin supply shock incoming?

There are only 21 million Bitcoin, and as many of you know, demand will continue to rise as the supply becomes scarcer. The amount of Bitcoin available on exchanges is rapidly shrinking, and in my opinion, this trend will only accelerate as the Fed continues to print more U.S. dollars.

For Bitcoin’s price to rise, demand must increase as well. If no one wants to buy, the price won’t go up.

As many of you know, the Fed has started lowering interest rates, making it cheaper to borrow money. This leaves people with more disposable income each month, and some of them will likely choose to invest. As demand for Bitcoin increases while its supply continues to shrink, this will lead to a significantly higher price!

Crypto has directional alignment with global liquidity (liquidity up = prices up, liquidity down = prices down).

CRYPTO
Trump, Crypto Project will Start On Tuesday

Donald Trump’s decentralized finance (DeFi) project, World Liberty Financial, is set to launch its token sale next week. According to a Friday post on X (formerly Twitter), the public token sale will begin on Tuesday, October 15, and will be available to those on the whitelist.

Accredited investors must meet U.S. regulatory requirements, including an annual income of at least $200,000, or $300,000 with a spouse, for the past two years, with expectations for that income to continue.

While the project aims to eventually include all Americans, it's starting with limited access. World Liberty Financial, built on Ethereum, was first announced in August by Donald Trump’s son, Eric.

The platform will offer crypto borrowing and lending services. Despite the excitement around Trump’s crypto-friendly stance ahead of the U.S. presidential election, DeFi projects like this can be risky. Hacks are not uncommon in the space, as seen in other projects such as Uniswap, a decentralized exchange widely used to trade tokens.

TESLA
MUSK’S $25 TRILLION BUSINESS

Thursday night’s “We, Robot” event was meant to showcase Tesla’s robotaxi, but it was Optimus, the humanoid robot, that stole the spotlight. At Warner Bros. studio lot, a group of Optimus robots moved untethered through the crowd, demonstrating remarkable improvements since their debut two years ago, when they couldn’t even walk on stage unaided. Now, they were interacting with guests, playing games, and even pouring drinks.

Elon Musk declared Optimus as potentially the “biggest product ever” and wanted attendees to witness its progress firsthand, without pre-recorded videos from Tesla’s facilities. Despite the excitement, the robots weren’t fully autonomous. They were controlled remotely by humans in special suits, as one operator admitted.

This reminded many of an earlier controversy when Musk posted footage of Optimus folding a shirt, only for viewers to spot its operator’s hand in the video. While impressive, the event revealed that true artificial intelligence is still a future goal for Optimus.

He has stated that annual earnings from Optimus could reach $1 trillion. With a conservative valuation multiple, he estimates the business could be worth $25 trillion on its own.

At a $25 trillion valuation, Tesla's stock price would be approximately $7,886 per share.

China
Goldman Sachs Boosts China Forecast

Goldman Sachs has raised its forecasts for China's economic growth in 2024 and 2025 following new measures from Beijing to boost the economy. These measures include increased public spending, with plans announced over the weekend. The bank now expects China’s GDP to grow by 4.9% this year, up from its previous estimate of 4.7%. For 2025, Goldman upgraded its forecast from 4.3% to 4.7%.

A key factor in this optimism is Finance Minister Lan Fo’an's announcement of 2.3 trillion yuan ($325 billion) in local government special bond funds to be used in the fourth quarter, which signals stronger public spending and a larger growth rebound than initially expected.

Additionally, the National Development and Reform Commission plans to approve 200 billion yuan in investment projects by the end of the month, aiming to meet the "around 5%" GDP growth target for this year.

Meme of the day

Word of the day
Ideate

To ideate is to form an idea or conception of something.

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.