Crypto portfolio update

Exposure: 54.2%

Net return: 586.8%

Comments: The last 2 weeks have been exceptionally eventful with Silicon Valley Bank, Signature Bank, First Republic Bank and Credit Suisse blowing up in dramatic fashion.

The root cause is the extent of interest rate hikes, which means the Fed is now much more likely to slow the pace of further increases - or perhaps even pause them - to reduce the likelihood of further bank failures.

As to be expected, such bank solvency concerns have pushed up the price of assets that exist outside the banking system (such as gold):

The bank failures have also spurred Balaji to place the now-infamous 'BitSignal' bet: That BTC will reach $1 million in 90 days.

The chance of Balaji winning this bet is slim-to-none, but it brings up an indisputable point: The TradFi system is failing and all attempts to save it have only resulted in increasing doses of the same medicine - monetary easing.

And this problem is not limited to the United States.

Over the weekend, central banks around the world got together to offer emergency lending facilities to banks in an attempt to avoid more bank runs:

The fact that they didn't wait for Monday to make the announcement is an unmistakeable sign that the emergency is real.

This combination of 'bank failures + easing monetary conditions' is fundamentally bullish for bitcoin. Unsurprisingly, its price has rallied significantly from the bear market lows:

In terms of narrative/sentiment, few cryptocurrencies are as appealing as bitcoin right now.

If we see more bank failures in the coming days/weeks, Balaji's bet will suddenly sound a lot less ridiculous than it does today.

Portfolio allocation:

 DeFi Kingdoms pre-alpha combat

We now know what DFK combat will roughly be like:

So the devs have taken a big a step towards finally releasing a playable (combat) feature of the game.

As discussed in the previous newsletter I'm personally not too keen on the combat system, but its completion could be a bullish catalyst for the project. 

It'll take another few months at least to fully get things up and running however, so hopefully by then conditions will be conducive to be buying into DFK again.

Fingers crossed!

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Patrol boat encounters tsunami waves

Wanna crap your pants? Imagine you're on this boat encountering a giant tsunami wave:

 Quote of the week

Where to focus:

For the beginner, execution.

For the intermediate, strategy.

For the expert, mindset.

- James Clear

Thanks for reading, and have a great weekend.

Cheers,
Slowmad

P.S. If you have any questions or feedback, let me know at: chris[at]digitalslowmad[dot]com

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