Kategorie: Crypto Markets

• TrumpCoin crashed by 95%, plummeting from $0.00555 to a low of $0.0001203.
• Trading volume surged by 169%, reaching $8.91 million despite the price drop.
• Controversy surrounds TrumpCoin’s origins, with claims involving Donald Trump denied.

In a dramatic turn of events, TrumpCoin (DJT), a Solana-based meme coin using former President Donald Trump’s name and image, has experienced a steep price drop. The token’s value plummeted by 95%, falling from $0.00555 to a low of $0.0001203 before recovering to around $0.00042 at press time.

Despite the massive price drop, trading activity for TrumpCoin surged. Data from Coinmarketcap reveals a 169% increase in trading volume, which stood at $8.91 million at press time.

While some may link the surge in trading activity to investors trying to offload their holdings, the total value locked (TVL) in TrumpCoin stands at approximately $23.1 million, reflecting ongoing investor interest despite the sharp price decline.

Why has TrumpCoin crashed?

The broader crypto market downturn significantly influenced TrumpCoin’s fall. A large-scale sell-off in the crypto market saw Bitcoin and Ethereum prices drop by 10% and 18%, respectively, erasing at least $500 billion from the market capitalization within three days.

The equity markets were also affected, with the S&P 500 falling 4.4%, driven by weak employment data and disappointing earnings from major tech firms.

Prior to the current market turmoil, Martin Shkreli, infamously known as “Pharma Bro,” claimed his involvement in creating TrumpCoin, sparking rumours that the project had official ties to Donald Trump.

Shkreli alleged that Trump and his son Barron were behind the memecoin, a claim that Roger Stone, a close aide to Trump, vehemently denied. This controversy led to over $6.3 million in bets on the authenticity of TrumpCoin on the crypto betting site Polymarket.

Despite reaching an all-time high of $0.01806 in June 2024, TrumpCoin has faced a steep decline, marking an all-time low of $0.0001203 on August 6, 2024.

The meme coin situation remains fluid amid the ongoing cryptocurrency meltdown and the controversy around who is behind the meme coin.

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Cryptocurrencies have shed billions of dollars in the past few days as investors remain concerned about Japan, US election, and technical formations. No crypto has been spared, with Bitcoin falling below $50,000 and Ethereum moving to $2,335. Other cryptocurrencies like BNB, Solana, and XRP have fallen by double-digits. 

Poodlana token sale is thriving

Cryptocurrency investors are still piling into Poodlana, a new crypto token that aims to dethrone popular meme coins like Dogecoin, Brett, and Pepe. 

Data on its website shows that Poodlana has raised over $4.991 million in less than three weeks. This growth makes it one of the best-performing token sales of the year.

Poodlana’s popularity has happened because of its excellent marketing and the fact that it is named after Poodle, a highly popular Japanese dog breed.

The developers are marketing it as the creme-de-la-creme of the meme coin industry. Precisely, the associate it with Hermes, the most prestigious brand in the fashion industry whose simple bags go for thousands of dollars. 

The token sale has also been highly popular because of the developer’s approach. For example, the POODL token is increasing after a few days, meaning that people who buy it earlier will get it at a discount. 

Also, unlike other token sales that stay without trading for months, Poodlana will start trading just 30 minutes after the sale ends. Precisely, investors will be able to trade the token at midday on August 16th. 

Many investors buy Poodlana and other token sales hoping to cash it big when they list. Historically, many investors have made a fortune investing in token sales. Just recently, many meme tokens like Popcat, Pepe, and Brett surged, creating millionaires along the way.

However, it is always good to embrace the best risk management strategies when buying presale tokens. Ideally, you should not invest funds that you are not comfortable to lose since, as we saw on Monday, the industry can crash. You can buy the Poodlana token here.

Why cryptocurrencies dropped

There are a few reasons why cryptocurrencies plunged. First, they dropped because of the ongoing recession fears after last Friday’s weak jobs numbers. The data showed that the unemployment rate rose to 4.3% as the economy created just 114k jobs in July. 

https://x.com/elerianm/status/1820157102805176655

Second, there are concerns about Japan, where the country’s central bank has started hiking interest rates. This is important because Japan is the third-biggest economy in the world and is one of the top buyers of foreign assets. Also, the hike happened as other central banks are cutting rates. 

Third, there are concerns that Donald Trump will not win the presidential election after all. Most crypto investors believe that Trump would be a better president for the industry. For one, he has vowed to fire Gary Gensler, the SEC chair, on day one. 

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• Capula Management, Europe’s fourth largest hedge fund, has disclosed it holds nearly $500 million in spot Bitcoin ETFs.
• The spot ETF market continues to see increased demand despite Bitcoin’s price woes over the past few weeks.

Capula Management, the fourth largest investment manager in Europe, holds nearly $500 million in spot Bitcoin ETFs.

According to documents filed with the US Securities and Exchange Commission, the hedge fund manager has acquired $253 million of BlackRock’s iShares Bitcoin Trust (IBIT) and $211 million worth of Fidelity’s Wise Origin Bitcoin (FBTC) ETF.

Capula reveals its spot ETF holdings at a time the market is struggling with price downward pressure.

Institutional demand for Bitcoin ETFs is however seeing increased traction, with several pension funds among those to buy into the digital asset investment product. In one of the biggest moves, Morgan Stanley became the first major bank on Wall Street to allow financial advisors to pitch spot Bitcoin ETFs to its clients.

Data on by Arkham also showed that major holders of BTC, including MicroStrategy, BlackRock, Fidelity and Grayscale have not sold their BTC assets despite the market losses.

Bitcoin price

On Monday, Bitcoin dipped below $50k to test prices seen in February. However, BTC has bounced above $53k and the crypto market is optimistic of a potential recovery amid Fed interest rate cuts.

Earlier in the day, Wharton professor Jeremy Siegel called for the Fed to slash its fund rate by 75 basis points and another similar cut at its next meeting in September.

„I’m calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting – and that’s minimum,“ says Wharton’s Jeremy Siegel: pic.twitter.com/s4CgWx962Q

— Squawk Box (@SquawkCNBC) August 5, 2024

According to Polymarket bets, bettors are seeing a 29% chance the Fed takes an emergency interest rate cut.

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Solana has plunged more than 20% to trade near $110 as crypto traders see more than $1 billion in trading positions wiped out in the past 24 hours.

SOL dipped as Bitcoin led the crypto market in the bloodbath that had BTC testing lows of $49k and Ethereum tumbling to under $2.2k. Solana, which traded at highs of $145 late Sunday, fell sharply to test the $111 price level on Monday.

Declines for SOL and the rest of the crypto market came as investor fears over a US recession catalysed a global market meltdown in stocks. The Federal Reserve’s interest rates policy is also a major concern, while geopolitical tensions are also a factor.

„I’m calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting – and that’s minimum,“ says Wharton’s Jeremy Siegel: pic.twitter.com/s4CgWx962Q

— Squawk Box (@SquawkCNBC) August 5, 2024

In the crypto market, jitters over selling pressure from Jump Trading intensified the bleeding for ETH and other altcoins.

Crypto sees over $1 billion in liquidations

As crypto prices tumbled on Monday to see the total market cap dip 17% to under $1.9 trillion, hundreds of crypto traders experienced massive liquidations.

Coinglass data showed early Monday that total liquidations jumped more than 400% to over $1.1 billion. These were mainly long positions, with data indicating more than $962 million were leveraged positions that had bullish bets on crypto prices.

Amid the BTC crash and broader market decline, the number of crypto traders liquidated in 24 hours spiked past 301,700.

The total liquidations at the time of writing stood at $1.14 billion, with the largest single liquidation order being the $27 million in BTC.USD wiped out on crypto exchange Huobi.

Notably, short liquidations were at just $174 million, with $64 million in bearish bets for BTC and $50 million for Ethereum in 24

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• Morgan Stanley has become the first major Wall Street bank to allow its financial advisors to offer Bitcoin exchange-traded funds to its clients.
• Over 15,000 of the bank’s financial advisors have the go ahead to pitch Bitcoin ETFs to eligible Morgan Stanley clients starting on Aug. 7, 2024.

According to a CNBC report on Friday, Morgan Stanley’s 15,000 financial advisors can, from Aug. 7, offer spot Bitcoin ETFs to the bank’s e clients. This sees the bank becomes the first Wall Street banking giant to take this step amid growing demand.

Per the reporting, the US-based wealth management giant has allowed two funds for pitching to its customers – BlackRock’s  iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC).

However, while Morgan Stanley has allowed advisors to solicit these ETFs for clients, they will only be accessible to those who qualify. For instance, only clients whose net worth is $1.5 million or more, show an aggressive risk tolerance and want to invest in a speculative investment, will be eligible.

The bank will also allow these Bitcoin ETF investments in clients’ taxable brokerage accounts, and not their retirement accounts.

FUN FACT: Morgan Stanley’s advisors manage $5.7 TRILLION in client assets.

And next week, their 15,000 advisors can solicit eligible clients BlackRock and Fidelity’s #Bitcoin ETFs 🚀 pic.twitter.com/QTA0xHvxMo

— Bitcoin Magazine (@BitcoinMagazine) August 2, 2024

Spot Bitcoin ETFs market

IBIT and FTBC are among the 11 spot exchange-traded funds the US Securities and Exchange Commission approved for trading in January 2024. These spot ETFs allow investors to purchase and trade shares of products that track the market performance of the world’s largest digital asset Bitcoin.

Like other spot crypto ETFs, IBIT and FBTC offer an investment vehicle for those looking to gain exposure to Bitcoin via a structure that’s easily accessible and readily tradable.

US spot Bitcoin ETFs so far hold a total of $57.2 in net assets, while data shows cumulative net inflows were at $17.5 billion as of Friday, Aug. 2.

Per data by SoSoValue, the spot Bitcoin ETFs saw net outflows of over $237 million on Aug. 2, 2024, with over $104 million flowing out of Fidelity’s IBIT. Grayscale’s GBTC saw outflows of over $45.9 million.

On the other hand, BlackRock’s IBIT recorded inflows of $42.8 million. The Grayscale Bitcoin Mini Trust (BTC), which went live on the NYSE Arca this week, recorded over $9.8 million in inflows.

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