“Holding Space!”

Hi There! If you’ve been rocking with me since Issue #1, you already know - New Year’s resolutions? Not my thing. Honestly, my new year doesn’t even begin in January; it starts in spring. January is my time to slow down even more and reflect on the past year. Did I hit my goals, or nah? And if I did, what made the difference? For the ones I missed, where did I fall short?

This isn’t about beating myself up, though. It’s an exercise in understanding, realigning, and tying up loose ends from old projects before stepping into something new.

Last year, my theme was “Advancement” and, let me tell you, I embodied that word fully. I advanced mentally, spiritually, and physically, and those shifts rippled through every other part of my life.

For 2025, the vibe has shifted. This year, it’s all about “Starving the Distractions.”

In this age of AI and relentless information overload, everything, and I mean everything, is vying for my attention. Throw in life’s usual chaos, and it’s easy to get sidetracked. But not this year. This year, I’m making a firm commitment to stay focused. No more noise. No more distractions. It’s focus or nothing. 

Alright, let’s dig in!

Last Week’s Market Overview (December 29 - January 5, 2025)

Stocks closed out a stellar 2024 but began 2025 with mixed momentum. The S&P 500 and Nasdaq snapped five-day losing streaks last Friday, trimming early New Year losses. However, major indexes ended slightly down for the week amid thin trading. European markets posted modest gains, while Asian equities faltered on weak Chinese data and South Korean political turmoil. Treasury yields dipped, and commodities like oil and gold advanced, setting a cautiously optimistic tone for the start of 2025.

U.S. Markets Recap

Equities: Major indexes saw slight weekly declines:

• S&P 500: -0.47%

• Nasdaq: -0.51%

• Dow: -0.67%

• Russell 2000: +1.06%

While the S&P 500 capped an impressive 25% annual return in 2024, choppy trading and tech-sector volatility marked the first sessions of the new year. Tesla (TSLA) missed delivery targets, and Apple (AAPL) offered discounts in China, reflecting broader corporate headwinds. Value stocks outperformed growth, while small caps stood their ground.

Fixed Income: Treasury yields declined slightly as bond markets digested muted economic data. The 10-year yield dipped by 4 basis points lower, while the 2-year yield fell 6 basis points lower. Despite 2024’s rate volatility, the Treasury curve steepened marginally, presenting attractive opportunities for investors focusing on medium-term bonds.

Commodities:

• Crude Oil: +4.8% for the week, supported by shrinking U.S. inventories and optimism about Chinese stimulus boosting demand.

• Gold: +0.8%, marking its strongest annual performance since 2010.

• Silver and Copper: Diverged, with silver gaining while copper fell on industrial demand concerns.

Currencies: The U.S. Dollar Index climbed 0.9%, buoyed by strong job market data and low unemployment claims. The euro and British pound weakened by over 1% against the greenback, reflecting diverging monetary policies between the U.S. Federal Reserve and European Central Bank.

U.S. Economic Recap (December 29 - January 5, 2025)

• ISM Manufacturing PMI: Continued contraction in manufacturing activity as the employment index fell for the seventh month, signaling cooling labour markets.

• Jobless Claims: Dropped to 211,000, the lowest in eight months, underscoring labour market strength and dampening expectations for aggressive Fed rate cuts.

Global Markets Recap (December 29 - January 5, 2025)

• Europe: European equities edged higher, driven by optimism over a stronger eurozone economic outlook despite tariff uncertainties and ECB hawkishness. Germany and France face ongoing growth challenges, but the STOXX 600 closed 2024 with a 9.7% annual gain.

• Asia: Asian markets faltered, led by weak performance in Hong Kong and mainland China. Chinese PMI data signaled modest recovery, while South Korea faced heightened political turmoil with an impeachment vote against President Yoon. However, signs of stabilization in China's housing market and government stimulus measures offer hope for 2025.

Crypto Recap (December 29 - January 5, 2025)

• Bitcoin: Gained 4% last week, recovering from a recent pullback. U.S.-based Bitcoin ETFs saw renewed inflows, boosting market sentiment and pushing Bitcoin’s price to $102,000 again.

• Bitcoin ETFs Dominate: BlackRock’s iShares Bitcoin Trust now holds over 550,000 Bitcoin, capturing nearly 48% of the U.S. Bitcoin ETF market and about 2.62% of total Bitcoin supply.

• Last week’s top crypto gainers: SUI, AIOZ, PENGU, MOG.

Here are other key highlights from last week:

• Rogue Funds sold its Advanced Micro Devices (AMD) Puts.

• Morgan Stanley mulls adding crypto to E-Trade.

• NFTs record $8.8B sales volume in 2024.

• Memecoins will continue to lose market share to AI agent coins.

• Crypto VCs reveal what they’re looking for in 2025.

• Polygon Hub Year 2024: A Retrospective and Vision for the Future.

The first full week of 2025 is off to a dynamic start!

Key U.S. Economic Releases So Far:

1. Factory Orders (Monday): U.S. Factory Orders declined 0.4% month-over-month in November, reversing a revised +0.5% gain in October. Year-over-year orders fell 1.9%, marking the weakest performance since June, reflecting a cooling manufacturing sector.

2. ISM Services (Tuesday): The ISM Services Index came in stronger than expected, with prices paid reaching their highest level since February 2023. The robust performance underscores resilience in the service sector amid elevated inflation pressures.

3. JOLTS Job Openings (Tuesday): Job openings surged unexpectedly, reaching the highest level since May 2024. This marks the second consecutive month of increases, suggesting companies delayed hiring until after the election, creating an artificially soft labour market moment. The surge indicates renewed confidence in hiring and labour market strength.

Other Key U.S. Economic Events to Watch This Week:

• Wednesday (1/8/25): ADP Nonfarm Payrolls, Jobless Claims, Fed FOMC Minutes

• Thursday (1/9/25): Stock Market Closed - Jimmy Carter Day of Mourning

• Friday (1/10/25): Nonfarm Payrolls, Unemployment Rate, Average Hourly Earnings, Consumer Sentiment

Fed speakers this week:

• FOMC Member Cook (Monday):

  • Highlighted the Fed's ability to proceed cautiously with additional rate cuts, citing labour market resilience and persistent inflation data challenges.

• FOMC Member Barkin (Tuesday):

  • Stressed the need for businesses exposed to tariff changes to remain agile in their operations and strategy.

  • Noted that artificial intelligence (AI) is increasingly being adopted for decision support rather than job replacement, highlighting its role in enhancing business efficiencies without significant workforce disruption.

• Upcoming Speeches:

  • Wednesday: FOMC Member Waller

  • Thursday: FOMC Members Harker, Barkin, Schmid, and Bowman

Earnings:

Most anticipated releases include Tilray (TLRY) and Delta Airlines (DAL).

Global Economic Events This Week:

• Monday (1/6/2025): Germany CPI

• Tuesday (1/7/2025): CPI releases from Switzerland, Eurozone and Australia. UK Construction PMI and Canada Ivey PMI.

• Wednesday (1/8/2025): China CPI and PPI

• Friday (1/10/2025): Eurozone CPI and Canada Unemployment Rate

Trading Tip:

“Crypto Narratives for 2025 - AI Agents, DeSci, Gaming, Carbon Credits!”

Week 12/29/24 - 1/05/25 Recap

Special Tools and Strategies - Pocket Universe

Protect Yourself from Web3 Scams with Pocket Universe

Last week (Issue #113), I provided a guide to cryptocurrency security for everyday investors, breaking down key protection strategies. This week, I’m focusing on a practical tool for DeFi traders connecting hot wallets like MetaMask to decentralized exchanges: Pocket Universe.

Web3 scams, from phishing attempts to malicious smart contracts, have caused billions in losses. For anyone active in DeFi, securing your assets is important. Pocket Universe offers an easy-to-use browser extension to help you stay safe by flagging scams, verifying transactions, and ensuring you know exactly what you’re signing.

Here’s how Pocket Universe can protect your crypto.

What is Pocket Universe?

Pocket Universe is a browser extension specifically designed to shield cryptocurrency users from Web3 scams. It acts as a layer of protection for users navigating the often-complex and risky world of DeFi.

Key features include:

• Rugpull Warnings: Alerts you to malicious actors with a history of rugpulls on popular trading platforms.

• Transaction Transparency: Before signing, Pocket Universe shows exactly which assets are being moved or accessed in every transaction.

• Cost-Effective Transactions: The extension finds faster and cheaper ways to bridge assets, saving users time and money.

• Broad Wallet Compatibility: Works seamlessly with popular wallets like MetaMask and Coinbase Wallet, ensuring an uninterrupted user experience.

With over 180,000 users, more than $1 billion in assets protected, and 3 million transactions analyzed weekly, Pocket Universe is a trusted name in Web3 security.

Technical Implementation

How Pocket Universe Identifies Potential Scams

Pocket Universe scans transactions in real-time, analyzing their details for suspicious activity. By leveraging a database of known scam wallets and rugpullers, it flags malicious transactions before they’re signed.

User Alert System

If a potential scam is detected, the extension displays a warning overlay, providing clear details about the risk. For instance:

• Alerts about serial rugpullers.

• Transparent transaction previews, showing exactly what assets are at risk.

Additional Security Features

• No Wallet Connection Needed: Users don’t need to connect their wallets to use Pocket Universe, adding an extra layer of safety.

• Non-Custodial Assurance: Pocket Universe doesn’t have access to your private keys, wallet, or seed phrases. You retain complete control of your assets.

• Chain Compatibility: Supports multiple blockchains, including Ethereum, Polygon, Binance Smart Chain (BSC), Optimism, Arbitrum, and others.

User Benefits

Real-World Protection Examples

Imagine you’re trading on a DeFi platform and encounter a malicious smart contract designed to drain your wallet. Pocket Universe scans the transaction, identifies the risk, and warns you before you can sign it—saving your funds from being stolen.

Comparison: Browsing with vs. without Pocket Universe

Without Pocket Universe: Users are often left guessing whether a transaction is safe.

With Pocket Universe: Users receive clear, actionable alerts and transparency, reducing their risk of falling for scams.

Seamless Integration

Pocket Universe works in the background, enhancing security without disrupting everyday crypto activities like trading, bridging, or swapping tokens.

Setup and Usage

Installation Process

1. Visit the official Pocket Universe website or your browser’s extension store.

2. Install the extension with one click—no wallet connection or signing required.

3. Start browsing Web3 with an added layer of security.

Key Features to Know

• Transaction Warnings: Always review the transaction details provided by Pocket Universe before signing.

• Wide Wallet Support: Works with MetaMask, Coinbase Wallet, and others, but note that it’s currently unavailable for WalletConnect and OKX Wallet.

• Desktop-Only: Pocket Universe is available for desktop browsers but not mobile devices yet.

Best Practices for Optimal Protection

• Keep your browser extension updated to benefit from the latest security features.

• Pair Pocket Universe with other security measures, like hardware wallets and two-factor authentication.

• Always verify alerts and avoid signing transactions you don’t fully understand.

As Web3 continues to grow, so do the threats associated with it. Tools like Pocket Universe help users navigate the crypto space safely, offering essential protection against scams without compromising usability. Integrating a security tool like Pocket Universe into your security toolkit is a smart move.

Better safe than sorry!

Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.