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What happened today?

We’re now officially a week past the largest day of liquidations in the history of crypto, which drove Bitcoin to reach a low of just over $91,000. A week later, BTC trades at $98,000 and actually looks quite strong despite the volatility. In the grand scheme of things, clearing out so much liquidity (estimates are around $8B in liquidations last Monday alone) is likely healthy for a market that has seen its biggest asset rise 300% in the last year.

Unfortunately, likely the biggest news of the last week is Barstool president Dave Portnoy getting his hands on memecoins. After profiting from a few pump and dumps, Portnoy decided to personally endorse and try to run the “Jailstool” meme, which reached a high of over $200M market cap yesterday before dropping under $40M this morning. For some reason this market still loves giving its money to celebrities, however I will say the pace at which this dumped is indicative of how tired traders are of these coins.

Trading Talk

With the market getting tired, something to keep a close eye on is which narrative will emerge next to take attention. The proverbial wind has been taken out of the sails of memecoins for now, and I would honestly say sentiment among most traders is worse than it was even in the bear market. The reason for this is many feel they have missed the bull market, not making nearly the gains they thought they would based on last cycle. There’s a lot I could say in response to this, but to keep things at a high level, I think it makes sense that many people missed this cycle so far. If we go back to 2020-2021, we saw completely unprecedented growth in the crypto markets where market natives were not prepared take advantage of all the new liquidity.

This time around, we have a different situation. The average trader is much more sophisticated and knowledgeable than they were last time around, and there is this degree of nihilism that certainly didn’t used to be present. Whereas before we had “WAGMI” vibes and cults like the “Link Marines,” now we have insider trading circles simply looking to dump the next coin. This is a significant culture shift that means it is in fact much harder to win in this market, but it also means doing the proper research and having conviction is all the more important. If everybody is trying to rotate quickly to the next hot thing, good coins inevitably get left behind for smart money to accumulate. This is why it is so important to try to predict where future narratives may go, as if you’re right you end up front running the entire market.

Tweet of the Day

Bold is truly a generational talent.

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

• Alabama man pleads guilty to hijacking SEC X account to pump Bitcoin

• Michael Saylor’s Strategy hits Bitcoin buy button after a breather

Alt Coins and Stocks

• ‘High Odds’ XRP, Solana, Dogecoin and Litecoin ETFs approved: analysts

Regulatory

• North Carolina considers bill to invest public funds in Bitcoin ETFs

New Launches

• Ethereum security platform Drosera raises $3.25 million in funding, brings total funding to $4.75 million

Free BONK Report from Fundstrat Research

Interested in learning how the institutions are looking at your favorite memecoins? Download a free report from Fundstrat Research on BONK and the memecoin landscape below!

Recent Beluga Content

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