TheBRRR’s Thoughts

Crypto continues to outperform.

Regional banks continue to struggle.

Jay Powell continues to hem and haw about cutting interest rates.

Some things never change.

Our portfolio remains long crypto and big tech until something materially changes with the trajectory or direction of inflation.

Bitcoin All-Time High Sparks Memecoin Revival

Crypto Rundown

• Bitcoin's Sharp Rise & Retreat: Following a meteoric rise to $69K, Bitcoin experienced a 10% pullback to $59,700, clearing out excess leverage and normalizing funding rates (read: borrow costs) across the crypto perpetual futures market.

• Immediate Bounce: After the fall to $59,700, BTC quickly recovered overnight and is currently trading at around $67,100.

• Memecoin Mania: Amid Bitcoin's rally, memecoins like Pepe and Dogwifhat are hitting new highs reaching north of $2B in marketcap, with retail traders driven by the recent cryptocurrency upsurge re-entering the market. Dogecoin and other old favorites are also experiencing a resurgence.

• Bull Market Sentiment: The current excitement around memecoins and the broader crypto market reflects a bullish sentiment, reminiscent of past market cycles but with a stronger focus on community-driven narratives and decentralization.

• Halving Anticipation: Speculation around Bitcoin's upcoming halving event is contributing to the market's bullish outlook, with expectations that it will positively impact Bitcoin's price as it has in previous cycles.

• Community Focus: The current rally highlights a shift in investor interest towards memecoins and projects that emphasize a strong community, moving away from more abstract blockchain projects with predatory token structures, discounts for venture capitalists, and large presale allocations.

• Bucking The Trend: While memecoins are leading the charge, select coins are also outperforming bitcoin over the last few weeks. The outperformers include AI projects Render, Fetch, and Filecoin, and also select layer 1 tokens like Ether, Solana, and Near.

Coindesk, Bloomberg

NYC Community Bancorp Stock Halted For Bad News

WHAT HAPPENED:

• New York Community Bancorp (NYCB) is on the hunt for a cash infusion, aiming to rally investor confidence amidst turbulence. The stock was halted for news this afternoon.

• Facing challenges from potential real-estate loan losses and internal control weaknesses, NYCB's stock has nosedived roughly 70% since January.

• Since January, the bank's stock price has plummeted approximately 70%, with a recent drop below $2 per share.

• The bank disclosed problems within its commercial real estate portfolio and a loss in the last quarter, leading to a dividend cut and discovery of "material weaknesses" in loan assessment and monitoring, resulting in credit downgrades.

• NYCB's loan focus on rent-stabilized properties in New York City is particularly troubling to investors, especially considering the impact of rising interest rates and rent control laws.

WHY IT MATTERS:

• Strategic Moves: With leadership changes, including Alessandro DiNello stepping in as CEO, and exploring options like asset sales and financial instruments to share loan risks, NYCB is scrambling to stabilize.

• Regulatory Hesitance: Moves to offload credit risk outside the regulated banking system have caught regulators' wary eyes, underlining the broader implications of NYCB's struggles on financial oversight and market stability.

• Market Watch: This situation is a critical indicator of the health of the regional banking sector and the real estate market's resilience amidst economic pressures.

CNBC

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The BRRR is meant for informational purposes only. It is not investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.ll