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What happened today?

Crazy liquidations hit the crypto market once again today as $1.7 billion (yes, with a B) has been liquidated in the last 24 hours. The US woke up to many alt coins being down as much as 30% in the early hours, with things starting to recover as the day comes to an end. Without a specific catalyst to cause this kind of a drop, I would guess this was just another liquidation flush as we so often see in crypto — it’s also a great reminder to be careful with leverage especially in a market this volatile.

Despite Bitcoin’s drop in price today, MicroStrategy announced they had once again acquired more BTC this month, to nobody’s surprise of course. With how well Saylor’s strategy has played out so far and the rumors we are already hearing, I expect BTC to become part of the balance sheet of many more large companies. Getting more “sticky” capital like that into the market will make a massive difference in the longevity and sustainability of Bitcoin’s rise, raising the price floor over time.

Biggest Headlines

The Beluga intern has been hard at work gathering all the most important crypto news stories so you have them in one place!

The Majors

• Amazon urged to buy Bitcoin as Microsoft shareholders continue BTC proposal

• $120k by Xmas: Why another Bitcoin run could be in the cards

Alt Coins and Stocks

• Dogecoin, XRP, and Solana slide as Bitcoin price falls below $97k

Regulatory

• Former Treasury Secretary Larry Summers says Trump’s idea to create a national Bitcoin reserve is ‘crazy’

• Trump’s SEC pick Paul Atkins wins cheers from crypto — and even industry critics

New Launches

• Ethereum Layer-2 network Movement launches MOVE token with $830 million airdrop

Trading Talk

Alt-coins and memes have been on up-only mode since the election so we can’t be too surprised to see some pullback here, although admittedly the price action many of us woke up this morning was scary. When open interest builds up so much as people FOMO into the bull market, it’s common for liquidation flushes to happen which then allows for higher moves. It may not be fun watching your spot bags drop off, but it’s definitely a lot more fun than getting margin-called — times like today are a great reminder to stay off leverage in an industry where established coins can move 30% in a matter of minutes.

Looking at the top 100 coins by market cap, there is not a single one that is up on the day, in fact most are down more than 10%. If you think the bull market isn’t over, and I don’t think it is, this is probably a great place to scale into some alt coins you’ve been watching. Had I kept our profits in the Beluga wallet from last week in USDC I would be converting it to ETH here, however since I swapped directly into ETH already it’s a bit too late for that.

Tweet of the Day

Definitely no top signals, no bubble to see here.

The content on this site is for informational purposes only and should not be construed as investment advice. While Beluga strives to ensure the accuracy and timeliness of information, there may be discrepancies when comparing our data to that of financial institutions, service providers, or specific product websites. Always consult with a professional before making any financial decisions.

Will McKinnon is the Head of Content for Beluga and has spent every day for many years trading coins. For that reason there are too many to name, however his largest holdings by a significant margin are Ethereum and Bitcoin. NFA DYOR