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Weekly Beluga Insights

Monster week for the crypto markets as the Fed’s decision to cut rates by 50 bps this week ended up catching most of the industry offsides. In fact, according to reports over 90% of economists surveyed believed we’d see a smaller cut of 25 bps… in the crypto world however, the odds on Polymarket were split almost 50/50, meaning Polymarket was a better indicator than leading financial experts. Bitcoin itself sits up almost 10% on the week, however the real pops seemed to be in the alt-coin market which is a major shift from the status quo this year. Major winners of the week include Beluga Trading Wallet holdings FTM and AAVE, as well as TAO leading the charge for AI coins.

With both Token2049 and Breakpoint going on this week there’s a lot going on in the social world of crypto, all reports saying the vibes in Singapore feel very bullish. As I mentioned in the newsletter yesterday when we see sentiment shift so quickly, it usually indicates the opposite will happen in the near future, however this time I’m not so sure. The alt-coin market has been brutalized this year and it just might be time for alt-coin season, especially given the attention former President Trump will be bringing to the DeFi world with his upcoming World Liberty Finance ICO.

Major Movers of the Week

Public Trading Wallet Update

Great week for the Beluga Trading Wallet as Fantom and Aave outperform most of the market, bringing our balance back over the $90,000 line. Our largest position, $FTM, is now up 30% from our average price after many weeks of dollar cost averaging into the coin and does not look to be stopping any time soon. Aave conversely is one of our smaller positions, however its performance especially after it was announced Trump would be using Aave for his protocol cannot be ignored. It’s difficult to pick exit points especially in crypto markets, however it’s my belief this is just the start of the second leg of the bull run. Months of consolidation and down-only price action on basically every coin led to many traders capitulating, and if there’s one thing the crypto markets love doing it’s catching traders offsides.

We still have $15k in USDC in our account which I’ve been patient to deploy due to the uncertainty in the market, but I think given the sentiment and market shift it is likely time to get active again. For now I’m looking towards high float and low FDV coins in the DeFi sector that generate real revenue, similar to Aave. For context, there has been a trend for the last year and a half or so where coins launch with very little of their supply in circulation in order to attain a massive fully diluted valuation, which has led to absolutely abysmal price action on these new coins. I’m not interested in buying the bags of venture funds, and would much rather they buy mine instead, so I’m on the search for coins such as $CRV which remain powerhouses in DeFi yet have been mostly forgotten by the market. As a final note, do not FOMO into these pumps – no matter what they are saying on Twitter, patience is almost always rewarded. Pick your conviction plays and watch for a pullback for entry, or just keep an eye on the Beluga Wallet to see what we get up to!

Quick Quips: Catch Up on What You Missed

• The Fed lifted Bitcoin’s price. Here’s why alt-coins are next

• Ether is going to shine again, Steno research says

• US spot Bitcoin ETFs rebound to daily net inflows of $158 million; BTC hovers at $63,500

• Tom Brady’s $200M NFT company relaunches… without NFTs

• Crypto project World Liberty Financial, promoted by Trump family, confirms plan for token

Tweet of the Week

DeFi season seems like it’s back on the menu :)

Recent Beluga Content

Check out episode 18 of the weekly Beluga Podcast, where we cover everything going on in crypto and waste our lives in the trenches so you don’t have to.

Disclaimer

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