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Weekly Beluga Insights

While Bitcoin is currently trading still above $100,000 you definitely wouldn’t know it by seeing how many leveraged positions were liquidated this week. In fact, Thursday was the single largest day of liquidations we’ve had in the crypto market since the collapse of FTX 2 years ago. On Thursday afternoon we saw a flash crash which took BTC from $100,000 to $90,000 in a matter of minutes, mostly driven by highly-levered long positions getting liquidated. It seems one trader on OKX was liquidated for $200M alone… and Bitcoin is currently trading higher than where they opened their position! These are the dangers of trading on leverage and why I write so often in this newsletter to avoid it, even if you are right a quick unexpected price movement might take you out.

Despite sentiment around Solana still remaining quite high, inflows have dropped off quite a bit and the Solana ETF filing was once again rejected. On the other hand, Pudgy Penguins announced the launch of their token would be this month and rather than sticking on Ethereum where the NFT collection is, it will be deployed on Solana. It may not sound significant but I think this is a huge win for the Solana ecosystem, as Pudgy Penguins are arguably the biggest and most recognizable NFT project at the moment.

Major Movers of the Week

Public Trading Wallet Update

The Trading Wallet hit another huge milestone this week as we briefly crossed $200,000 for the first time, officially up $100k since our start in April. While I don’t think some of the tokens we own are anywhere close to done with their run, our $CRV position was up 400% and so would be silly not to take some profit. I used this pump as an opportunity to shave off some $FTM as well, the proceeds of which were swapped to ETH as it looks to me like Ethereum is ready to catch up. I still like FTM however with the launch of Sonic expected to be this week it’s a good idea to de-risk, and also gives us the opportunity to move some of that free capital onto the Sonic chain once it launches.

Now that we have quite a bit more liquid to play with, I’d like to deploy some funds into lower cap onchain tokens on ecosystems like Base and Sonic once it’s live. I think we’ve probably missed the boat on $AERO Aerodrome (the biggest DEX on Base), however if I see a dip there I’d love to add it to the Beluga portfolio. I also am very interested in the Virtuals Protocol on Base which we first talked about here a few weeks ago, as I think the value proposition of a platform which allows teams to deploy (semi) sophisticated agents with tokens attached is compelling. $VIRTUAL itself has gone an on an insane run and likely too late for us to enter, but there may be some agent tokens from the platform that fit the bill. As always stay tuned to the Beluga site to see everything we do live!

Catch Up on What You Missed

• Incoming crypto czar Sacks says ‘Choke Point’ crackdown ‘needs to be looked at’

• Too soon? Bitcoin price spike to $200k is ‘achievable’ in 2025, says analyst

• US spot Bitcoin ETFs surpass Satoshi’s estimated 1.1 million BTC holdings

• Solana memecoin launchpad Pump.fun bans UK users after regulator warning

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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