Hi friend 👋🏼

This week brings a lot of variety! We’re talking about anything from Bitcoin’s strong hold on the market, to Ethereum’s investor hesitation. We’ll also touch on the impressive trillions stashed on money markets, and finish off with some exciting details about rare bottles going up for auction this season. 

The Weekly Fun Fact 🤔

For both collectors and wine connoisseurs, Sotheby’s upcoming fall wine auction season is bringing out some of the rarest bottles. In addition to a remarkable selection of Champagne vintages, the list includes well-known Bordeaux and Burgundy wines. Notably, a collection from a well-known private cellar will be up for sale, offering a rare opportunity to purchase these exquisite bottles. It’s a real moment for wine enthusiasts to secure some rare bottles — and toast their savings.

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🔴 ETH Faces Market Doubt as Confidence Wanes 🌉

Ethereum’s ecosystem faces several challenges such as the bad user experience, investors removing liquidity from its staking mechanism, and even workforce layoffs. ETH has always been a steady force in the crypto ecosystem, but investor confidence seems to be fading. 

Although there is an interoperability roadmap to unify the Layer2 ecosystem, still investors are voting with their money since staking rewards have decline +3%, lagging behind Cosmos and Solana.

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🟡 Glacier of Cash Draws Investors 🧊

As investors shy away from riskier assets like stocks due to rising bond yields, a huge "glacier" of cash has formed, with $6.5 trillion stashed in money market funds. The S&P 500's six-week winning streak could end if higher yields discourage investors from moving their money out of cash and into stocks. 

In keeping with this conservative outlook, traders are now pricing in fewer rate cuts from the Federal Reserve, which were previously expected in 2024. Given that interest rates are still high, this implies that cash may remain on the sidelines for the time being, which would impact the projections of a bull market.

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🟢 Bitcoin's Dominance Continues 🚀

As inflows into specialized ETFs and election-driven confidence drive the rally, Bitcoin has surged past $70,000 this week and is testing an all-time high. Bitcoin's appeal as a hedge against economic instability has grown, driven by expectations of a pro-crypto posture under a prospective Trump administration.

Paul Tudor Jones, a billionaire hedge fund manager, sees Bitcoin as a hedge against inflation, and yes, he encourages others to add it to portfolios.

The outlook for Bitcoin is pending on the election outcome: A Trump victory could drive Bitcoin to $80,000 by year-end, while a Kamala Harris win could drop it to $65,000, according to a Bloomberg survey. 

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🎬 That’s a wrap on this week’s recap! From traditional to crypto markets, it’s always an adventure watching them unfold. Have thoughts on this week’s picks? Let us know.

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