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Weekly Beluga Insights

Huge nukes were let loose in the orderbooks this week as we saw BTC make its largest correction since the election, losing the $100k line and falling as low as $92,000. This has of course prompted the alt-market to drop even more dramatically, with most down over 20% still even with the small recovery we’ve had. The reason for the dip is largely due to comments from Jerome Powell this week, which led the market to believe conditions will be worse for risk assets like crypto.

While prices this week may not reflect it, we are rapidly approaching Donald Trump’s inauguration which is a massive step for the regulatory scene in crypto. His purported views, initiatives and precedents set by his launch of World Liberty Finance mean the days of random SEC lawsuits and regulation by enforcement are over. Anecdotally, many founders I have spoken with recently who were looking at moving out of the country just a year ago due to worries over regulators are now certain they will stay in the US — in other words, we are already seeing a significant impact and it hasn’t even really started yet.

In an interesting headline towards the end of the day, it was announced that Stablecoin giant Tether had invested $775M into video-sharing platform Rumble, which has gained notoriety as a “safe space” for discussions around politics and other controversial things. It may seem like an odd investment at first glance, but when digging deeper it appears that in 2021 both Vivek Ramaswamy and JD Vance invested in Rumble… and now it makes more sense!

Major Movers of the Week

Public Trading Wallet Update

This is one of those weeks where I employ the “don’t look at my portfolio” strategy for my own holdings, however as the Beluga wallet is part of my job let’s dive into it — at time of writing our balance sits at about $163k, down $30k from our update last Friday. This represents about a 15% drop off, which given how allocated we are to alt-coins which got particularly smashed, really isn’t that big a deal. In a bullmarket, every dip should be looked at as an opportunity to buy, as by definition things go back up. As long as you’re not caught buying the last dip, you’re in a good spot.

Since we have already fully deployed our stablecoins and our profits from $CRV and $FTM were already rotated into $ETH, there isn’t much for me to do here. With Sonic’s chain officially going live this week I’m keeping my eye on some plays, however when prices drop this dramatically onchain activity tends to dry up so could be worth waiting to see where things shake out. One such token I have my eye on is $BEETS from the Beethoven protocol on Fantom and now Sonic, which aims to be the largest Liquid Staking Provider on the chain, among other things as well. The plan is to bridge our FTM holdings to Sonic eventually, which we can then use for $BEETS or any DeFi protocols that seem interesting. Trying new things is usually +EV in crypto, so that’s what I am to do.

Catch Up on What You Missed

• ‘Hawk Tuah Girl’ Hailey Welch responds for first time in weeks following HAWK memecoin lawsuit

• Crypto companies Kraken, Ripple, Ondo donate to Trump’s Inauguration

• Tether to make $775 million ‘strategic investment’ in Rumble, shares rally 44.6%

• CRV and CVX lead DeFi token index sharply higher as market awaits pro-crypto administration

• He invested $50,000 in Bitcoin at $125 and used his profits to launch a $2 million treasure hunt: ‘I’ve always had a spirit of adventure’

Tweet of the Week

Earn for Free with Beluga Starterpacks!

This week we’ve teamed up with Web3 gaming powerhouse Mavia as well as BONK, the largest memecoin on Solana, to give away free tokens for our users! Simply complete a Starterpack with some information on each project to earn, all for free!

You can find all live Starterpacks on the Beluga site here.

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