There’s no denying it.

Bitcoin is the Coca-Cola of crypto. The closest thing DeFi has to a household brand.

Even if your uncle thinks Solana is a skin cream, he’s almost certainly heard of Bitcoin.

And just this Monday, Bitcoin certifiably reclaimed its throne, taking up more than 50% of the crypto market.

But, hold up: What does Bitcoin dominance mean for the future of crypto?

Espresso Shots

☕️ Trader vs. Trader

Trader Joe’s, the grocery store, is suing Trader Joe, the DEX trading platform, alleging that its crypto doppelganger has violated federal copyright laws.

The crypto TJ, much like the brick-and-mortar grocer, is a bustling center of mercantile. The DeFi TJ currently holds $77 million tokens and facilitated $25 million in trading last September.

But the frozen-food delicatessen has not been happy with its Web3 counterparts and has repeatedly attempted to have the name changed, finally registering an official complaint with the World Intellectual Property Organization (WIPO).

But if the DEX TJ is really going to give OG Trader Joe’s a run for its money, it will need cashiers that confirm my purchases are smart and delicious, while also quietly suggesting they love me.

☕️ AI and the Environment

Alex de Vries, the founder of “Digiconomist,” a newsletter “exposing the unintended consequences of digital trends,” published a new study in the journal Joule attempting to quantify energy usage by AI.

The study acknowledges that the training phase of AI, during which chat models are given prompts, is the most energy-intensive. But not enough research has been done that takes the entire AI lifecycle into account.

Additionally, the massive data centers needed to house AI create a significant energy drain without the economic benefits of job creation or attracting additional industries.

“It is probably too optimistic to expect that improvements in hardware and software efficiencies will fully offset any long-term changes in AI-related electricity consumption,” the study reads. “These advancements can trigger a rebound effect whereby increasing efficiency leads to increased demand for AI, escalating rather than reducing total resource use.”

What the Digiconomist is glossing over is that AI can always generate images of new forests — but any such trees will look like they were directed by Wes Anderson.

☕️ The McRib Index

Some analysts are cheekily pointing out that the rise of Bitcoin and several other assets may be tied to the release of the McDonald’s McRib.

COO Nick Maggiulli of Ritholtz Wealth Management demonstrated on X that the availability of the McRib, on average, led to a 0.04% higher average daily for the S&P 500.

But it’s not entirely nonsense. Since 2016, four rises in the price of Bitcoin have coincided with the seven limited releases of the McDonald’s McRib.

Now, we thought this correlation was going to lead to more government projects. But when we explained the situation to our financial advisor, he pointed out that we entirely misunderstood the phrase “pork-barrel spending.”

Polled Brew

Spilling the Beans

Absolute Bitcoin Dominance 🏆 💪

As of Monday, Bitcoin has reclaimed its majority position in the overall crypto market.

That means Bitcoin accounts for more than 50% of crypto holdings, up from 38% at the start of 2023.

Bitcoin’s risen 66% in value over 2023, resisting major sell-off pressure throughout the market.

But that same sell-off pressure has been the undoing of Ethereum and rival altcoins.

Bitcoin’s growing strength may indicate a bull run upward of $30,000 to $40,000 — which traders have long awaited — might not just be possible, but probable.

And that’s not just accounting for Bitcoin’s current market share. There are clear stepping stones in place.

We still have the next halving event and the highly anticipated result of the wave of TradFi spot Bitcoin ETF applications.

But how should you invest?

If you’ve hodled your Bitcoin — good, keep hodling. As we’ve said, there are a lot of promising catalysts on the horizon.

And if you don’t yet own Bitcoin, it’s not the worst time to buy, Bitcoin’s currently hovering around the $27,000 mark as of writing.

But if you’re like us, you’re still kicking yourself for not picking up as much bitcoin as you could financially sustain when it was languishing around $16,000 during the dregs of crypto winter.

But let’s pivot for a moment — enough about Bitcoin, it’s doing just fine.

What about the suffering altcoins? What should we do about the Ethereums, TRONs, and even Dogecoins of the world?

Well, it might be best to wait before buying. Naturally, as Bitcoin continues to rise and eat up the market share, those altcoins might drop.

A better time to buy might be when altcoins are near their respective bottoms. When pundits forcibly tell you everything “not Bitcoin” is practically worthless.

Not you. You buy the ultimate dip, and you hodl.

Because Bitcoin will rise. We’re pretty sure of that. But even in the bull market of our dreams, Bitcoin won’t continue up forever.

Despite the model of essentially every American business, no asset increases in value without limit.

Yes, even a Bitcoin-fueled bull market will exhaust its momentum. But when that happens, you’ll see that those underestimated altcoins absorb the inertia, and pump right back up.

Bitcoin’s established market dominance and its empire is probably only going to grow, not shrink.

But we don’t see a world where Bitcoin is the only cryptocurrency. The crypto market is a delicate ecosystem and champions will rise and fall.

Bitcoin’s a big fish, yes, literally the largest. But it’s still just another swimmer in the ever-changing crypto-currents.

But for now, Bitcoin’s taken the throne. So, enough talk about the future: We need to get in the long line of grovelers waiting to kiss Bitcoin’s ring.

Crypto 101

Price-Time Priority: This is the pecking order for transactions on exchanges, funds, and securities markets around the world.

Usually, the order with the best price goes first. If two or more orders have the same price, the earliest order is completed first.

It’s fair, it’s balanced, it’s ubiquitous.

The Last Sip

The Last Sip: While yes, the release of the McRib may pump up the S&P 500 by several percentages, we have reason to believe that the discontinuation of McDonald’s Steak, Egg, and Cheese Bagel may have singlehandedly created the crypto bear market.

Stay Caffeinated,

Coffee & Crypto Team

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.