Tom here.

Investor panic wiped out $6.4 trillion from the stock market on Monday. 

However, Arthur Hayes, co-founder of BitMEX and crypto’s foremost macro whisperer, says it’s time to buy the dip.

His reasoning: The Bank of Japan, which said last week that it would raise interest rates to combat inflation, decided to stop after one hike.

Higher rates would’ve forced Japanese investors to sell their US equities and bonds to cover interest payments. 

Weak US economic data also contributed to the downturn and triggered calls for the Federal Reserve to cut interest rates. 

Monday’s big drawdown was a huge test for spot Bitcoin and Ethereum exchange-traded fund holders — and they passed it with flying colours.

Bitcoin ETFs only saw $168 million in outflows on Monday, and $0 from BlackRock’s fund. Not bad at all.

Even better, Ethereum ETFs actually enjoyed inflows on Monday and Tuesday.

Also worth noting that all major DeFi protocols functioned properly during the bloodbath — Aave even made $6 million from liquidating its users.

So where does that leave us? The dust is still settling, but options data shows traders still expect Bitcoin to hit $100,000 before the end of the year.

How Coinbase lawyer’s clash with Molly White is roiling crypto’s $183m election push

Joanna looked at the public spat between Coinbase and crypto journalist Molly White over the firm’s political donations and election data.

Arthur Hayes talks election and Bitcoin: ‘Trump or Harris, it doesn’t matter’

Hayes sat down with our editor-in-chief Trista to talk about Bitcoin, Donald Trump’s push for a crypto stockpile, BlackRock, Gary Gensler, and the presidential election.

How AstraSec team prevented DeFi protocol from suffering $64m hack — and they won $65k for it

Osato examined how a cybersecurity firm found and patched up a critical vulnerability in a DeFi protocol’s code.

Post of the week

We have a weak spot for Shogun memes at DL News — especially when they marry macroeconomics and degen culture.