~Estimated Read Time: 4 Minutes and 25 Seconds
*Markets are subject to volatility, so the price may change.
S&P 500: $3,998.95 (-16.10%) (YTD)
Bitcoin: $23,192.81 (-49.98%) (YTD)
Ethereum: $1,597.05 (-56.92%) (YTD)
USDC: $.99 (-0.06%) (YTD)
Solana: $43.15 (-74.70%) (YTD)
Hey Tea Sippers đ,
Weâre sorry if you are facing extreme heat conditions. Letâs make this the best Friday yet, and get you a cool drink to sip this morning (An Iced- tea sounds refreshing!) Letâs get you some quick reads to digest before your day flies by.
Recent news says Amazon just acquired a healthcare startup called One Medical for $3.9 Billion to expand their suite of products into the healthcare sector.
In other news, Netflix is in a frenzy as its subscriber count continues to drop drastically. They are now looking to discover new revenue and customer retention strategies to decide the future of the company. Will Netflix become the next Disney or Blockbuster reincarnated?
Well, we are going to send you off. We hope that you enjoy the stories we have for you. Grab your tea and start sipping!
Cheers! âď¸
1. Housing markets hit all-time lows, as fears of a recession increase.
The housing market is a very tricky investment asset but tends to be very rewarding, especially for new couples. Youâre 2 years fresh out of college. You are with your girlfriend, and soon-to-be wife, and you guys are looking to acquire a home. You guys have been searching for one before the pandemic, but as you look right now, the prices are outrageous⌠why?
Inflation is at an all-time high- As the Federal Reserve (Central Bank of the US) continues to hike up rates to combat inflation and limit spending, this has also led to a recent shift in the housing market.
1 year ago: Rates were displayed at around 2.8%
Now: Rates are displayed at around 5.5%
Buyers are now forced to answer some tough questions:
Should I purchase a home now or wait until prices drop?
Should I purchase a smaller home?
Should I pay an expensive tag for a home?
Should I live in a cheaper neighborhood?
Some stats:
60,000 home-purchase deals fell through in June.
The average mortgage rate for the past decade averaged 4.5%, making it feasible for individuals to afford rapidly rising housing prices.
Mortgage rates have increased borrowerâs monthly payments by 44%
The Big Gulp âď¸:Â
The housing market is down bad right now, and will continuously get worst, as the fed discusses raising interest rates higher, and rates are becoming far too high for most people to afford or find a desirable home for living. In fact, mortgage applications have gone down 50% since earlier in the year. As more guidance and legislation come out within the coming weeks, letâs see how the housing market can respond.
2. Tesla causes confusion amongst investors as they reported selling 75% of their Bitcoin holdings.
Tesla and its founder Elon Musk are always on the news at this point. Whether itâs criticism of Teslaâs autonomous functionality or peopleâs opposing views on Muskâs leadership style. They frequently appear to make an appearance on the front page of the news. This time, Tesla is being questioned for selling its bitcoin holdings.
Long-term potential?
They invested $1.5 Billion in bitcoin last year.
After the bitcoin to fiat conversion, they now have $900 million on their balance sheet.
Estimated that they suffered a $460 Million impairment due to the selloff.
But Elon says, donât worryâŚ
âThe reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate so it was important for us to maximize our cash position,â Musk said in an earnings call on Wednesday. âThis should be not taken as some verdict on bitcoin,â he said, adding that Tesla is open to increasing its crypto holdings in the future
The Big Gulp âď¸:Â
It looks like we are all still figuring it out, and only time will help us determine which digital assets will be fundamental to society. As for now, we have seen that bitcoinâs price has drastically fluctuated to the point where many are unsure and unable to dictate its actual value. Many leaders and innovative thinkers seem to have continued faith in bitcoinâs power and capabilities, but have some lost faith? I think the question for many is a matter of when less if we will ever know which digital asset will lead us to mass adoption.
Extra Tea âď¸
Minecraft- They have chosen to ban all NFTs and blockchain technology use on the platform.
Felony- Ex-Coinbase employee has been charged and arrested with insider trading.
SBF- FTX founder writes about why he thinks the bottom is behind us in crypto, and new trends he is interested in.
Onward- Epic Games CEO (creator of Fortnite) says they will not be interfering with developers who wish to implement blockchain and crypto technology into the platform.
Tea Pods âď¸
Wanna hear more about the market downturn and some key insights/predictions? Listen to the CEO, of Real Vision, Raoul Paul break down his ideas on how the space will evolve as he makes parallels to past trends in history. Highly recommend you listen to this podcast episode on The Scoop.
Listen Here.
Sencha Tea Fact of the Week âď¸
Since you made it this far!
If you or a friend know anyone interested in the space, feel free to recommend them.
And, if you have any questions, feel free to contact me: Kristian Lamarre.
Cheers!âď¸