The objective of this letter on The adoption of the Internet compared to that of cryptos is to inform you about the current state of the crypto-asset market as well as recent news in this field. This letter is not investment advice, but merely a sharing of my personal point of view.
News
Cryptos have never been used as much according to a16z: 220 million active addresses in September. In a16z's latest 2024 crypto ecosystem report, we learn that September set a record in terms of active addresses. What are the key data points that demonstrate the growing adoption of blockchain technologies?
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MicroStrategy has the ambition to become a $1 trillion Bitcoin (BTC) bank. Driven by its strategy to accumulate as much Bitcoin (BTC) as possible, MicroStrategy continues to grow. The company has set an ambitious long-term goal: to become a Bitcoin bank with a valuation exceeding $1 trillion.
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Cryptocurrencies and the flat tax seem spared: what does the 2025 finance bill contain? On Thursday, the 2025 finance bill was presented to the Council of Ministers. While concerns were looming, particularly regarding the flat tax, a potential increase does not seem to be on the agenda for now. Here are the key elements.
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Vitalik Buterin proposes drastic changes for the Ethereum (ETH) network – What could change? Vitalik Buterin, the co-creator of Ethereum, has made several major proposals for the evolution of the payment network, which could strongly affect the ETH staking mechanism. What are they and what could this change for users?
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Bitcoin in France: Transformations and Perspectives for Wealth Managers. As Bitcoin establishes itself in the United States, an urgent need for education is being felt among French wealth managers. During the Patrimonia exhibition, Paymium mobilized the Lyon community of bitcoiners to facilitate knowledge sharing with professionals interested in this sector.
Fundamental Analysis
Source : https://www.coingecko.com/fr
Letter No. 42: The adoption of the Internet compared to that of crypto; Declining volatility and still diversifying!
At the time of writing, the price of Bitcoin is 67,000 $ (on 10/17/24).
The adoption of the Internet compared to that of cryptos
There have never been as many active cryptographic addresses per month! In September, 220 million addresses interacted with a blockchain at least once, a figure that has more than tripled since the end of 2023. We can compare this to the adoption rate of the Internet (in monthly activity), and what is striking is that the curves follow the same trends, which is encouraging.
Currently, we are at the same level of adoption as the Internet in 1998, which shows that the growth potential is immense. It is therefore essential to invest for the long term in the uses of tomorrow!
a16z
Decreasing volatility and still diversifying!
The volatility of BTC and ETH is decreasing significantly as the market matures. This is a very positive signal because it reflects continued adoption and increased growth of the crypto ecosystem.
Regarding Bitcoin, the more liquidity increases, the more volatility decreases, thereby opening the door to increasing involvement from institutional investors. Once Bitcoin adoption is fully complete, its volatility will reach a minimum, while its liquidity will be at its maximum. The maturity of the Bitcoin project and the market is therefore continuing to progress.
Coinbase Institutional, Glassnode
Since 2020, Bitcoin has shown an average correlation of only 0.33 with the S&P 500 and 0.13 with gold, thereby highlighting its powerful diversification role in a portfolio. Contrary to what some believe, BTC is therefore not directly correlated with the stock market.
However, the stock market and BTC both share common correlations with liquidity and money printing policies.
In addition to being a good diversifier compared to equities, Bitcoin is also one with respect to gold. This shows that it has its own dynamics and constitutes an independent and distinct asset class (along with digital assets).
Coinbase Institutional, Glassnode
Bitcoin ETFs: voracious accumulators of BTC?
Since their launch in January 2024, the growth of Bitcoin ETFs has been truly impressive. These financial instruments, which allow institutional investors to gain exposure to Bitcoin without having to hold it directly, are experiencing a rapid rise in popularity and influence.
It took 5 years for gold ETFs to break $20 billion in inflows: Bitcoin did it in 10 months. The most successful ETF launch in history! This is the result of global recognition and adoption.
In conclusion, the speed at which Bitcoin ETFs are absorbing available supply marks a key turning point in the market. This dynamic highlights growing institutional adoption and accentuates the scarcity aspect of an already limited Bitcoin supply. Today, thousands of advisors, managers, and financial experts from major firms like BlackRock are contributing to the democratization and explanation of Bitcoin.
Here is a chart illustrating the change in the number of Bitcoins held in ETFs, going from about 600,000 BTC to nearly 1 million BTC in the span of about ten months.
The colors represent the competition between the different ETF issuers, highlighting their struggle to attract investors and sell their Bitcoin shares through their ETF products. This dynamic creates increased competition among them to quickly explain what Bitcoin is as well as its benefits.
Dune
Spot Bitcoin ETFs are starting to capture a significant portion of the circulating Bitcoin supply. The percentage of the captured supply has increased from 3.24 % to 5 % of the total supply as of today.
This increased demand reduces the available supply on the market, thereby generating an additional «scarcity effect» on top of the limited quantity already available.
Dune
Our service
At Crypto Assets Management, we offer discretionary portfolio management of digital assets, tailored to your profile. Our strategy is based on the analysis and management of Bitcoin cycles (historically 4 years), favoring investments in long term, monthly arbitrations, and a particular emphasis on tokenomics.
Check out our website: https://www.mereau-finance.com/
Discovery Pack
Investment of under €20,000
- Admission fee: 1.5 %
- Management fees: 2.5 % / year
- Performance fee: 20 % excl. VAT on capital gains (High Water Mark method)
- Exit fee: 3 %
- Minimum subscription: €5,000
- Commitment period: None
Premium Pack
Investment of more than €20,000
- Admission fee: 1.5 %
- Management fees: 2.5 % / year
- Performance fee: 20 % of the performance above the benchmark index*
- Exit fee: 1.5 if withdrawal before 3 years
- Minimum subscription: €20,000
- Commitment period: None
We are saved with the AMF under the registration number for digital asset buy/sell activities against legal tender and digital asset exchange against other digital assets: E2023-084.
— Warning —
This is not investment advice, no one can predict the future.
You are solely responsible for your investment decisions.
We are not responsible for losses following a decision made on the basis of
