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Hi There! Today, May 22nd, is Bitcoin Pizza Day! Observed worldwide, this day commemorates the first real-world transaction using cryptocurrency, where a Florida man named Laszlo Hanyecz paid 10,000 Bitcoins for two Papa John’s pizzas. On May 22, 2010, Hanyecz's forum post sought someone to trade the cryptocurrency for delivered pizza, marking a pivotal moment in Bitcoin history. A British man accepted the offer, spending about $25 for the pizzas, while the 10,000 Bitcoins were valued at roughly $41 at the time. The true significance of this transaction became clear as Bitcoin's value soared over the years. By 2015, the two pizzas were worth $2.4 million, and as of March 2024, the value of those pizzas had reached an astonishing $730 million. Bitcoin Pizza Day has since become legendary, celebrating the remarkable growth and acceptance of cryptocurrency.

Alright, let’s dig in!

Last Week in the Stock Markets

The Dow made history last week, closing above 40,000 for the first time and marking its fifth consecutive winning week. The Dow rose by 1.24%, while other major stock indexes also saw significant gains: the Total Stock Market was up by 1.55%, the S&P 500 increased by 1.54%, the Nasdaq surged by 2.11%, and the NYSE rose by 1.25%. Meanwhile, the CBOE Volatility Index (VIX) decreased by 4.46%, indicating a reduction in market risk perception.

Top Stock Movers

• Reddit (RDDT) shares jumped 10% following the announcement of a partnership with OpenAI. This collaboration allows AI to train on Reddit posts, promising advertising revenue and new tool development for the platform.

• GameStop (GME) shares sank over 20% as the retailer projected a decline in first-quarter sales due to a shift towards online shopping. The stock initially soared earlier in the week, echoing the 2021 frenzy, but later tumbled.

U.S. Economy Recap

Investor enthusiasm for interest rate cuts grew last week, buoyed by encouraging April inflation data. The Consumer Price Index (CPI) for April met or slightly underperformed expectations, fostering positive sentiment. However, last Thursday, Federal Reserve officials issued warnings about the prolonged high-interest rates, tempering rate cut expectations. Despite this, the stock market rebounded on Friday.

Retail sales figures showed a flat performance for April, falling short of the anticipated 0.4% gain, which hinted at decreased discretionary spending. Federal Reserve Governor Michelle Bowman reiterated that inflation progress has been insufficient, signaling potential future rate hikes. Additionally, Fed Chair Jerome Powell tested positive for COVID-19.

Metals and Mining

Precious metals performed strongly, with silver reaching its highest close in 11 years and gold approaching its all-time high of $2,500 per ounce. Industrial metals like copper also ended the week at all-time highs.

Energy and Oil

Crude oil prices remained stable between $82 and $84 per barrel, while natural gas prices saw increases at both the Henry Hub spot and futures levels.

Global Markets

European stock indexes had a mixed performance, while Japanese markets gained ground. Chinese equities showed limited reaction despite a government rescue package for the property sector.

Crypto Markets

Last week, the crypto market saw a boost from the return of Keith Gill, aka Roaring Kitty. His reappearance sparked a surge in meme coins despite overall market declines.

• Meme Coins Surge: Lesser-known coins like Mog Coin, Popcat, and Book of Meme, along with popular ones like Dogecoin, Shiba Inu, and Floki, saw significant gains.

• GameStop Token Skyrockets: The Solana "GameStop" token (GME) jumped 1,900%, with a trader making over $500,000 from a $30,000 investment.

• Cat-Themed Coins: Analyst Lookonchain predicted a cat-themed MEME season, boosting interest in coins like Popcat and Kitty

 Here are other key highlights from last week:

• Shibaswap migrates to Shibarium Network, expanding access to 2 chains

• Mastercard welcomes five startups to develop blockchain use cases

• Coinbase announced unusually big plans for Australian Pension Funds

• My Neighbour Alice kicked off Season 1 Beta

• Popular Polygon Backed Game launched on Google Play and Apple

This week, the focus is on the FOMC minutes and key indicators:

Cryptocurrency Market:

Bitcoin began the week with a surge, breaking through $71,000, nearly reaching its all-time high of $73,737.94 set in March 2024. This rise reflects a strong bullish sentiment in the cryptocurrency market, with Bitcoin and Ethereum climbing by 10% and 5%, respectively. Spot Bitcoin ETFs have seen positive inflows, pushing their total value above $12.4 billion, suggesting a potentially robust resurgence.

U.S. Economic Data:

Treasury Secretary Janet Yellen has been active in Frankfurt, Germany, engaging in discussions with CEOs of major German banks, focusing on macroeconomic trends, financial sector risks, and the enforcement of sanctions against Russia. Yellen emphasized the need for resilient clean energy supply chains and discussed significant investments in green energy facilitated by the U.S. Inflation Reduction Act and German policies.

Key Economic Indicators Scheduled for Release:

• Wednesday: Existing Home Sales, Fed FOMC Minutes

• Thursday: Jobless Claims, Services/Manufacturing PMI, New Home Sales

• Friday: Durable Goods Orders, Consumer Sentiment

Federal Reserve Officials' Remarks and Upcoming Speeches:

• Fed Chair Powell made no remarks on monetary policy during his recent address.

• FOMC Member Bostic highlighted bumpy inflation data and suggested that it might take a while for inflation to stabilize back to 2%. He anticipates that the new steady state of interest rates will be higher than in the past decade.

• FOMC Member Waller focused on consumer stress evident from rising delinquency rates and discussed the economic outlook aligning closely with Fed expectations.

• Fed Vice Chair Jefferson stressed the resilience of the job market and its role in maintaining the Fed's focus on controlling inflation.

• FOMC Member Mester remarked that any potential rate cuts would depend on progress with inflation control.

Upcoming Speeches by Fed Officials:

• Thursday: FOMC Member Bostic speaks again.

• Friday: FOMC Member Waller will give a speech.

Earnings continue, with the much-anticipated NVIDIA (NVDA) earnings report taking center stage.

NVDA is set to release its Q1 2024 earnings report on May 22, drawing significant attention due to its historical impact on AI-related cryptocurrencies. The performance of NVDA, on this day will largely depend on whether the company's earnings exceed or fall short of market expectations. A positive report could boost the stock price, while disappointing results might lead to a decline, influencing not just NVIDIA but potentially the broader tech and AI sectors.

Other notable earnings releases this week are outlined in the chart below.

Key Global Economic Events this week:

• Mainland China May Interest Rate Decision

• Canada CPI for April

• RBNZ Interest Rate Decision

• UK April CPI and Core CPI

• Euro Area HCOB Manufacturing/Services PMI

Trading Tip: Risk management is about understanding and controlling risk, not avoiding it.

Week 5/12/24 - 5/18/24 Recap

Special Tools and Strategies

Getting Started in Crypto: The Right Bank Makes All the Difference

Choosing the right bank is important when venturing into the world of crypto!

A crypto-friendly bank is a financial institution that combines traditional banking services with innovative cryptocurrency services. Unlike regular banks that use the SWIFT system for costly and slow international transfers, crypto-friendly banks leverage blockchain technology. This results in faster and cheaper transactions, with enhanced transparency and reduced fees. These banks handle both fiat currencies and cryptocurrencies, offering secure custody, deposits, withdrawals, and trading features.

Crypto-friendly banks aren't limited to just handling Bitcoin; they vary widely, including:

• Traditional banks that hold a crypto license.

• Crypto-native banks focused entirely on cryptocurrency services.

• Digital banks that provide online financial services with some crypto features.

• FinTech platforms that facilitate seamless transactions across digital and fiat currencies.

• FinTech super apps that integrate multiple financial services in one digital ecosystem.

These banks stand out by providing a comprehensive set of financial services that bridge the gap between traditional banking and the crypto world. They also emphasize regulatory compliance, offering competitive exchange rates for currency conversion and specific services for managing cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

Top Five Crypto-Friendly Banks for 2024

1. Ally Bank

   • Key Features: FDIC-insured, high APYs, diverse investment options including crypto funds.

   • Pros: Ally Bank facilitates the use of accounts with external crypto exchanges and offers effective financial management tools, making it beneficial for crypto traders.

2. Revolut

   • Key Features: Intuitive app interface, supports over 30 cryptocurrencies, MetaMask integration, offers crypto wallets and vaults.

   • Pros: Revolut enables easy purchase, sale, and holding of cryptocurrencies within its app, appealing to both beginners and experienced users with its user-friendly approach and competitive rates.

3. CashApp

   • Key Features: Broad financial services, supports traditional stocks and Bitcoin, allows direct Bitcoin deposits and withdrawals.

   • Pros: CashApp provides a versatile platform for managing financial transactions and investments in both fiat and cryptocurrencies, promoting significant control over Bitcoin assets.

4. Juno

   • Key Features: Crypto accounts with loans, savings, trading, and staking services; debit cards for crypto spending.

   • Pros: Catering to crypto enthusiasts and businesses, Juno offers specialized accounts and rewards for crypto activities, supported by advanced financial technologies.

5. Wirex

   • Key Features: Partners with Mastercard, supports multiple currencies, offers crypto earning plans (Cryptoback™ rewards system), and facilitates DeFi access.

   • Pros: Wirex integrates cryptocurrency with everyday spending, allows users to earn rewards, and provides financial benefits like zero foreign exchange fees and free ATM withdrawals.

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.