The crypto market seems to be astonished by yesterday’s season. Dogecoin (DOGE) threw every fundamental out of the window and smashed its way to the 5th position in the crypto top 10 by market cap. DOGE is trading at $0,27 with 20.6% losses in the daily chart.
However, the group decides to reinstate their ban in less than a day due to an article published by Bloomberg, as announced on their subreddit. With the title “WallStreetBets Bows to Crypto”, the article and moderator’s decision caused discomfort in that community.
As a sort of “revenge pump”, WallStreetBets might have caused DOGE’s rally. As evidence, Demiros pointed at the cryptocurrency’s traded volume. At its peaked DOGE, daily trading volume stood at $70.772.770.653, as shown by CoinGecko, with a $48B market cap.
In comparison, State Street Global Advisors’ SPY ETF, one of the “most widely held and traded”, registered around $25B in this metric during the April 17th session, according to Demiros. Also pointing at Dogecoin’s repository in GitHub, with many contributions over the past year, CoinShares CSO said:
the people have spoken, and the people want DOGE. The power of memes is moving markets. You absolutely love to see it. It’s gonna break people’s brains, and we’re just getting started. To all the @TikTokInvestors who are now $DOGE millionaires, cheers.
After a bullish momentum leading up to Coinbase’s debut on the stock market, Bitcoin’s price seems to be trending downwards. At the time of writing, BTC is trading at $60,174 with 1.9% losses in the 24-hour chart and 3.6% over the past week.
During this period, many investors were positive Coinbase’s direct offering was going to support a pump across the crypto market. The opposite happened. As Demiros stated, this is due to the high level of leveraged positions in the derivatives market.
One – bitcoin markets are very much driven by derivatives. funding rates, implied vol, and open interest are important to monitor. spot follows futures -> tail wags dog. Two – there isn’t enough leverage, and cost of capital limits capacity!
In previous bull runs, there have been at least 3 peaks for the same metric. This could indicate that the rally is still early and BTC’s price could rise a lot more if it follows a previous pattern, as shown below.
Each #Bitcoin Bull Cycle has had 3 distinctive peaks of supply held by short-term holders. (as a % of total supply)
We’re still cooling off after just the first major peak. pic.twitter.com/g9M8G4mPrK
— William Clemente III (@WClementeIII) April 17, 2021