Spot BTC: The Humbling

Quarter 3 began with a race on who will get the first Spot BTC ETF approved.
BlackRock roared and tackled the industry. An unprecedented anomaly entered with 9 trillion
dollars assets under management interested in having Bitcoin exposure for their clients. The
sentiment changed overnight, and euphoria was in the air again. The heartbeat of all crypto
fanatics swarmed and max bid BTC. For a YoY (year over year) perspective Bitcoin is now up
nearly 77% from its bottom of 15.5k. Sitting tall at $26,035 the coin is sparking liberation for
many once again. The market was in a state of horizontal gravity for many quarters. BlackRock,
Fidelity, Invesco were defibrating the market and waves of volume swarmed. Many companies
in the stock market were running parallel to the crypto run. Coinbase reached back to $114 from
its 2022 bottom of $31. Every quarterly result since, $COIN has been on the trajectory of
profitability. From the last report (Beyond Chatbots: Leaping Humanity) they were sitting at $61
per share. Profitable quarters will bring further confidence and speculative intuition on where the
company is projected on heading. Quarter 3 has been highlighted as the bottom for me since Q3
2022. The time off accumulation dwindles. The conglomerates have taken the stand.

Enter the Fink & PYUSD?

Potentially the modern JP Morgan for our time Larry Fink’s BlackRock entered the race
for the Bitcoin Spot ETF. The political science undergrad and the Real Estate MBA wants his
clients diving into $BTC. Although every Spot BTC ETF has been rejected by the grasp of Garry
Gensler and his former predecessors, he is truly the final boss. What lead to immense volume
with the news of BlackRock is the track record they hold for having a near perfect approval
rating. As for the month of August the market consolidates.

Thus, PayPal saw an opportunity in the market that the industry was missing. A
trustworthy stablecoin. Since the capitulation of $LUNA and its stablecoin Terra Luna the
market was missing a product. PYUSD has entered and the fintech giant has collided tornados
with BlackRock bringing more interest into the overall markets. In partnership with Paxos, who
is one of my most regulated, transparent, and the first US blockchain infrastructure platform to
secure a license as a regulated financial institution. Paxos already works with Venmo a peer to
peer payment app and assists with the crypto part of the service. Venmo owned by PayPal was a
test to see how much interest people use and interact with the platform. A stablecoin is 1:1 of the
US dollar. Since it’s also a cryptocurrency both the sender and receiver can work together at any
time of the day. The key is for more and more people to utilize this technology and $PYPL has
all of the ingredients necessary. Coinbase is going to add PYUSD onto the exchange! These
conglomerates have been doing strategic partnerships.
“PayPal is uniquely positioned to solve the massive opportunity of fiat onboarding — they have the
banking relationships, regulatory framework and infrastructure to onboard millions of dollars to millions of wallets.”
(Vogel 2)

MillennialZ: Auto loans X Student loans

Since the start of the new decade we had a worldwide pandemic and a near economic
collapse. With the help of superpower nations and sovereign countries we were able to prevent a
rippling tsunami with quantitative easing. Aside from QE, the United States had also paused
student loan payments to help ease newly grads into transitioning as a post grad. We had an
influx of new debt being signed. By pausing payments this gave new lifestyles purchases from
renting lavishly, and mostly getting a new automobile. Granted the APR’s for a car purchase in
2020 was around 2-3%. In 2023 with good credit you can manage to attain 7% APR. Although
still a positive interest. The car dealers have been going on a rampage of acceptances since the
pandemic. People with substandard credit been signing away with 20-35% APR for over 3 years.

The average borrower taking out a used car loan in the first quarter of 2023 borrowed 125% of the value of
the car they bought (Tucker 1)

That’s practically paying for two cars for the price of one. It’s not sustainable especially
commencing October 1st, 2023 student loan payments will begin once again. Lifestyle changes
for the overleveraged will shock millions of Americans. Only time will tell how this will ripple.
Buying a car now or using credit to splurge will be perilous in the coming months.

“Millennials, Gen Xers and even Baby Boomers owe more total dollars. But this October, when 46 million
Americans are supposed to resume paying back the $1.6 trillion they collectively owe on student loans from Uncle
Sam, Gen Zers could be in for the most shock and confusion” (Selassie 1)

We are entering Q4, August alone was a blood bath. To the people paying $800 a month
in automobile payments our country salutes them for circulated the economy. Once again
millennials and GenZ have not experienced a true recession yet. Many more Americans are
falling behind on their car loan.

“In the more than three years since the pandemic pause on federal student loan payments began, living
costs have skyrocketed in the United States. Inflation peaked at more than 9% last summer, housing costs have
continued to rise in many cities and credit card debt recently reached an all-time high. At the same time, a growing
share of Americans are raiding their 401(k)s for extra cash” (Hansen 1)

The Fitch downgrade X Evergrande?

For the month of July interest rates were once again increased by .25 basis point. Fitch
Ratings one of three credit rating industries has hammered the axe to the US Treasuries market.
Lowing the score from AAA the highest rating possible score to AA+. One of the reasons why is
the debt ceiling standoff that is going to be occurring in Washington towards the end of the year.
The dance of debt ceiling is always a reoccurring theme. Although the US still shows great signs
of growth and no signs of a default. For the United States they are going to be having
presidential elections, congress and senate elections. This brings a ray of uncertainty because the
balance of power can shift at any moment. Bringing new policies and ideologies, 2024 can shape
how the country will stand for this climax of this decade. As for the month of August, the market
did not like this announcement and have aggressively sold off across all markets.

“The Fitch decision is highlighting long-term political issues that are preventing the government from coming to an
agreement to slow the growth in debt/GDP. Nonetheless, there is still no substitute for U.S. Treasuries in the global
economy. The U.S. market is still the largest, most liquid and safest in the world” (Jones 1)
 Across the globe in China we had combined events for the month of August with the
Chapter 15 bankruptcy of Evergrande. In the final week of July to August, China had 3 weeks of
decline for all of its markets from blue chips to private developers have all been feeling the pain
of their country. Real estate and commercial buildings are a core component for the superpower
nation. The property sector is roughly ¼ of the entire economy for China. Markets all around the
globe have been feeling this tide. Combined with the Fitch Rating news led to a sharp decline for
August.

Since mid-2021, companies accounting for 40% of Chinese home sales have defaulted, most of them private
property developers. (Jim, Stempel, Knauth 1)

To conclude, we are all going to brace ourselves as the year comes to a close. China
might be having a riptide of events occur, but they always find a way to machinate a resolution.
As for the US the youngest generation is going to enter Q4 with a potential lifestyle change.
While continuing the 0 down payment, 0 credit approval for an automobile. The sun will still rise
but a season of clouds approaches. Don’t overleverage, don’t hinder more debt, this is all opinion
to be projected as quarterly insight.

Crypto

The only new position I have added for this Quarter (3) is Bitcoin Cash $BCH
The halving is an event for cutting the block reward by half. Bitcoin Cash is one of the many
who is going to have a halving in April 2024. In the shadows and mostly ignored by the space.
$BCH can be a silent runner for the upcoming halving. Going to allocate a total of 5% of my
crypto portfolio to $BCH. All other positions since the last report has stayed the same.

Bitcoin Cash Halving Countdown

https://www.nicehash.com/countdown/bch-halving-2024-04-01-12-00

Bitcoin Cash Transitions per second

https://bitpay.com/blog/bitcoin-vs-bitcoin-
cash/#:~:text=Bitcoin%20Cash%20has%20a%20transaction,during%20the%202021%20bull%2
0run.

Spoken on the last report we had KOMPETE, AGIX, AVAX, and several more but fundmenals
always surpass all in terms of risk.

Stocks:

$COIN Coinbase
 Coinbase was spoken on last report. They had a positive earnings outlook. They also have
a great association with BlackRock x BTC Spot ETF. The outlook on $COIN can’t be clearer the
market will awaken from the hibernation of the bear.
$TMC The Metals Company

News[1] Coinbase Q2 Earnings

https://techcrunch.com/2023/08/03/coinbase-q2-2023-earnings/

$MARA Marathon Digital Holdings (High Risk)

The rise of Bitcoin made Bitcoin mining companies rise in valuation as well. Currently
on a severe correction $8.50 per share with a market cap of 1.85B. Just last month they were
hovering the $18 range. In late August they are now about to reclaim the $9 support. If the
anticipated run of 24-25’ happens $MARA will run parallel to Bitcoin. Which is why its high
risk. If the conviction play does not work and the event does not occur then only a percentage of
my portfolio will take a hit. To reclaim all time high of 2021 from this current state is nearly a
700% gain. Something I can’t turn.

$TMC The Metals Company

An anomaly occurred earlier this year. (2023) Which was Norway discovering metric
tons of metals on the seabed. After I’ve researched companies that have or will be preparing
seabed mining operations. $TMC is the one that stuck out to me. Being only at 377M market
cap. With an all time high of $15 and local top of $3.20, the company might have more
incentives later on being that very few companies around the world do seabed mining.
News [1]
https://www.globenewswire.com/en/news-release/2023/06/30/2697686/0/en/US-Congress-
Directs-Pentagon-to-Assess-Domestic-Processing-of-Polymetallic-Nodules-under-National-
Defense-Authorization-
Act.html?fbclid=IwAR26W2UHm5laPMPKzVoDYJI49TLQ4xn_ZdGfWWuoUg0pSS7jMIg_D
uHwg3k

News[2]

https://www.reuters.com/business/environment/main-players-push-towards-deep-sea-mining-
2023-04-14/

New [3] Norway discovers metric tons of rare earth metals

https://gizmodo.com/norway-seabed-rare-earth-metals-copper-minerals-1850049338

$BAP Credicorp

Personally, I like when banks and companies are ubiquitous to everyday life. The silent
runners become great holdings for the long term portfolio. A company called Credicorp has
entered my radar and was surprised on what I found. Sitting At $129 per share and with market
valuation of 13.84 billion. Founded in 1995 and headquartered in Lima, Peru. They have become
a titan in the finance, banking and the insurance industry. They have many subsidiaries in
multiple sectors. They have a fin tech product called “Yape” which is just like Venmo or Zelle in
the United States. Those products are a big success in the states and Yape already has millions of
users. Recently expanding to Bolivia the company is expecting to onboard millions of new users.
The amount of speculative profit tingles.

BlackRocks influence and grit are everywhere. They have an ETF in Peru called iShares
MSCI Peru and Global Exposure ETF or $EPU. That ETF second largest holding is $BAP.
Which is what lead to researching on who exactly Credicorp is and what they do. One of the
biggest banks called BCP is owned by Credicorp. Once again in the shadows of an everyday
Peruvian. Yearly dividends of 4.68% yield! The amount of growth this company has got me
excited to hold and forget.

Yape users 2021 data

https://www.statista.com/statistics/1176479/number-yape-users-
peru/#:~:text=Yape%2C%20the%20mobile%20payment%20app,compared%20to%20the%20pr
evious%20year.

Yape enters Bolivia

https://www.grupocredicorp.com/noticias/yape-llego-a-bolivia/

$EPU iShares

https://www.ishares.com/us/products/239606/ishares-msci-all-peru-capped-etf

Sincerely,

James

Feel free to reach out!

Telegram: @FrozenWhale
Twitter: https://twitter.com/FrozenWhale_

Discord: FrozenWhale8989
WhatsApp: (Only if you have #)

Be well don’t over leverage. Opportunities always arises.

 Work Cited

https://blockworks.co/news/paypal-stablecoin-bitcoin-etf

Carl Vogel

https://www.forbes.com/sites/jahlselassie/2023/08/09/gen-z-braces-for-its-first-student-loan-
repayments/?sh=df39f41fb10f

Jah’I Selassie

https://money.com/student-loan-borrowers-expect-delinquent/

Sarah Hansen

https://www.kbb.com/car-news/study-average-used-car-loan-now-125-of-cars-value/

Sean Tucker

https://www.schwab.com/learn/story/fitch-downgrades-us-credit-rating

Kathy Jones

https://www.reuters.com/world/china/china-evergrande-files-protection-us-court-part-32-bln-
debt-overhaul-2023-08-18/

Jim, Stempel, Knauth