Bitcoin Blows Past $41,000 📈

GM. This is Degen Scoop. It’s Monday and both Bitcoin and Ethereum have reached their highest prices since May 2022, let’s start the newsletter:

• Bitcoin Blows Past $41,000 📈

• Armstrong Kills Base Token Rumors 🪦

• Judge Catches SEC Lying 🤥

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Bitcoin Blows Past $40,000 For The First Time Since May 2022

Bitcoin has broken past $40,000 for the first time since May 2022, marking a 142% jump in 2023. The rally is attributed to expectations of Federal Reserve interest-rate reductions and the expectation of the Bitcoin spot ETFs being approved. The precipice of ETH spot ETFs will also draw more funds when those come to market in the months following.

Investors believe the Fed is done with rate hikes, leading to speculation pricing in three interest rate cuts in 2024. Naturally, there are a confluence of different events that lead to bullishness: ETFs, the peak of interest rates, and the Bitcoin halving in 2024. It would be foolish to be bearish.

Bitcoin's resilience amid regulatory actions goes to show that despite its perceived ‘outdated tech’ Bitcoin is still clearly king. There have been countless innovations in the blockchain world, but Bitcoin will be dominant for many years to come with it having the most history.

Coinbase CEO Shuts Down Base Token Rumors

Coinbase CEO Brian Armstrong has stated that the exchange has no plans to launch a token for its L2 Base. This statement contradicts an earlier remark by Coinbase Chief Legal Officer Paul Grewal, who had suggested that a token for Base could be viable in the future.

Armstrong emphasized the success of Base, which became the third-largest L2 in terms of TVL within a few months of its August launch, reaching around $500 million in TVL. Coinbase aims to integrate Base with various applications and position Base as the default L2 on its platform.

Armstrong welcomed other exchanges exploring L2 solutions but questioned the need for each application to have its own L2, suggesting consolidation around one or two networks would be more effective. While Armstrong claims a token is off the table, I’d be hesitant to believe it’s off the table forever.

Judge Says SEC Made “Materially False and Misleading Representations” in Case

A federal judge has lambasted the SEC over its treatment of crypto firm Digital Licensing Inc., expressing concern that the agency made "materially false and misleading representations" to freeze millions of dollars in assets belonging to the project.

The SEC filed a complaint against DEBT Box, alleging it defrauded investors of nearly $50M. The judge criticized the SEC for obtaining a temporary restraining order and asset seizure through an ex parte application, stating that the SEC's lawyer made untrue statements about the crypto company closing bank accounts.

The judge issued a "show cause order," demanding the SEC provide reasons why it should not face sanctions for its behavior. The SEC is already facing high-profile lawsuits against crypto companies Coinbase and Ripple. The spot ETF is inevitable.

The BIGGEST NFT Sales Over the Weekend:

Notable Threads You Might Have Missed:

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.