THE CRYPTO MARKET IS PICKING UP 🚀

Welcome to the new issue of the Ambrosia Newsletter. We meet again to review the news of the markets. 

If you want to follow our adventures on a daily basis, go to Linkedin 🔔

MARKET ANALYSIS: Cryptos are on the rise again 📈 

+39.9% gain in January! It has been 10 years since Bitcoin has experienced such a growth in one month.

Naturally, Bitcoin is taking the rest of the market with it. Some altcoins have shown meteoric growth in just 7 days:

✅ Curve (CRV): 106%

✅ Solana (SOL): 72%

✅ Avalanche (AVAX): 51%

We could believe ourselves in bull market!

BEWARE

Such a rise is very often accompanied by a bearish correction. Especially since the macro-economic context will probably remain very degraded in 2023. Therefore, one should be wary of this type of rebound and remain cautious! 🙌

More and more crypto holders in the world 🌍 

A year ago, there were 306 million crypto investors in the world. But that number has since become quite obsolete as the crypto ecosystem continues to attract new users.

We are now 425 million crypto currency holders worldwide, an increase of +39% from last year 🚀

Bitcoin's fundamentals as well as its resilience continue to convince. The number of users has grown by 20% over the year, with a peak in April thanks to the Central African Republic making it its legal tender.

Who holds the most bitcoins? 🤷‍♂️

1️⃣ Satoshi Nakamoto with 1.1 million BTC ($21.5 billion)

The creator of Bitcoin is of course the one who owns the most. However, for the sake of the Bitcoin myth, we still don't know his identity and most likely never will.

2️⃣ The Winklevoss brothers with 70,000 BTC ($1.4 billion)

After winning their case against Mark Zuckerberg, the twin brothers pocketed the sum of $65 million. Much of this was invested in Bitcoin in its early days.

3️⃣ Tim Draper with 29,000 BTC ($570 million)

An American investor who is discreet but very good at finding the best nuggets at their genesis. He was notably involved in Tesla and Skype at an early stage.

4️⃣ Michael Saylor with 17,700 BTC ($350 million)

A very controversial American entrepreneur, he fell in love with Bitcoin a few years ago. He has been investing in it since then in a massive way, both personally and through his company MicroStrategy.

It is MicroStrategy that is on the top of the podium among the companies that hold the most bitcoins. It has reportedly purchased more than 130,000 units ($2.5 billion) since 2020.

Crypto payments 🪙

Crypto-currencies have never been used more in purchases of goods and services.

According to a study by CoinGate, there were 927,294 payments in crypto-currencies during 2022. We're talking about a 60% increase compared to the previous year 📈

This is mainly due to the number of entities that now accept crypto payments. We have 48% more than in 2021!

How to take control of your finances? 🧐

In order to manage your personal finances, it is essential to segment your savings into 3 main categories:

1️⃣ SHORT-TERM SAVINGS

It is also called precautionary savings because it should only be used in case of unexpected difficulties.

It is recommended to have the equivalent of 3 to 6 months of current expenses. This nest egg must be liquid and secure within the bank as in a Livret A or PEL for example.

However, be careful not to save too much. Cash is the asset class most affected by inflation (-5.2% in 2022)

2️⃣ MEDIUM TERM SAVINGS

You probably have a real estate, business or other project in the next 1 to 4 years? Good news. But in the meantime, don't let your money sleep. Your objective will be to beat inflation without taking too much risk!

For these savings, it will be preferable to position yourself in bonds and euro funds.

3️⃣ LONG TERM SAVINGS

Unfortunately, this savings is often neglected whereas it is it which will enable you to anticipate your retirement, to pay the studies of your children, to obtain additional incomes, etc...

By saving far, you can take the risk of exposing yourself to all asset classes, including the riskiest ones like the stock market and crypto.

That's it for today! We'll see you very soon for a new issue 😁

Victor Demonchaux

Co-founder & CEO