🐳 Weekly Edition: Bitcoin, ETH Accelerate Sell Off as Carnage Extends to Equities

Whether you’re in equities or crypto, today you felt some pain: Bitcoin broke under $60k for the first time since Trump won the election, ETH now sits down 20% on the week, the S&P500 lost a whopping $1.8 trillion in market cap and the Nasdaq posted its biggest point drop on record.

As I often do when we see red like this, I’d like to point out a few things that are actually going quite well, and why we’re likely near the bottom. First off for the TA enthusiasts, we’re seeing ETH’s daily RSI at its lowest point since the 2018 and late-2022 capitulations, which as we now know ended up marking the start of multi-year rallies. This obviously isn’t a sure bottom and RSI can stay low for months during true bear markets, but it’s an interesting indicator of capitulation nonetheless.

More than half of all Bitcoin in circulation is now held at an unrealized loss, a stark difference from just a few months ago when Michael Saylor proudly announced that “nobody has ever lost money buying Bitcoin.” This has also historically coincided with sharp reversals as can be seen in the chart above.

What you won’t find in the charts is that while ETH has bled about 65% from its peak last year, the main components that justify holding the asset have not only held but actually set records during this very same drawdown. Q1 was Ethereum’s most active quarter on record, all while transaction fees are at all-time lows. Staked ETH hit a record of 39.5 million ETH in late May, about a third of the total supply, with the validator entry queue at its largest since 2023 while the exit queue is near zero.

Ethereum also still dominates the tokenization market with over half of all tokenized RWAs held on the chain, with the raw value up roughly 300% y/y. Stablecoin transfer volume topped $8T in Q4, a new all-time high, while stablecoin supply on ETH sits above $175 billion.

I won’t sit here and tell you it feels great holding ETH right now, as I think you’d have to be crazy to enjoy a 20% weekly selloff. But hey, if I were given all the stats without the price, I’d think we were about to hit a new ATH. Crypto markets are psychologically and financially brutal, but they tend to reward those who can tune out the noise.

I guess now it would be a clean 100x

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

• Bitcoin falls below $60,000 for first time since 2024 Trump win

• Stategy’s Saylor says Bitcoin should avoid choosing between ‘purity and adoption’ as BTC extends losses

Alt Coins and Stocks

• Zcash crash just wiped billions from the privacy coin’s market cap — can ZEC recover?

• Tom Lee’s Ethereum Treasury BitMine prices preferred shares with 9.5% dividend

• Securitize clears SEC registration statement hurdle, sets path to NYSE listing as SECZ

AI

• AI exposed a massive flaw in top crypto network and experts warn banks could be next

Crime

• South Korean police investigates local Polymarket users on illegal gambling charges

Interesting Reads

• Government stablecoin payments would fuel ‘Tax Evasion Economy,’ lawmaker warns

Beluga Intern’s Weekend Reading Recommendation: The Book of Elon by Eric Jorgenson

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