DOGE shines amid market chaos

November 14, 2024

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DOGE leads the pack in risk-adjusted returns despite memecoin market chaos

Key points:

  • The memecoin market has faced a sharp decline and high volatility following Bitcoin's recent price fluctuations.

  • DOGE has shown high risk-adjusted returns, with volatile trends appealing to risk-tolerant investors.

News - As per a recent update, the memecoin market faced heightened volatility, with a sharp decline following Bitcoin's minor dip. While Bitcoin saw modest fluctuations, mostly keeping a stable bullish trajectory, memecoins experienced more pronounced swings in both directions.

What happened with memecoins? - Bitcoin experienced a brief 2% dip before recovering, but the memecoin index struggled, plunging 16.8% in the past 24 hours. This lag in recovery highlights that while Bitcoin’s price movements often influence memecoin trends, the latter’s rebound can be delayed or less robust.

Notably, memecoins also faced substantial selling pressure, with Binance recording a cumulative sell-off totaling $98 million in the USDT trading pair. This persistent selling activity intensified market volatility, posing the potential for further price drops if these pressures continue.

How does DOGE stand out? - Analyzing the Sharpe ratios of prominent memecoins shows that Dogecoin (DOGE) has outpaced its peers in risk-adjusted returns, though it remains the most volatile among top memecoins by market cap. This high volatility indicates that, while DOGE presents the potential of substantial returns, it also carries a higher risk level, which may appeal to risk-tolerant investors but deter more cautious ones.

Needless to say, throughout 2024, trading dominance within the memecoin sector has shifted, with FLOKI initially leading but eventually overtaken by SHIB, BONK, and DOGE’s toward the year’s end.

If market conditions stabilize, DOGE’s current momentum and renewed trading volume could support a potential price rally, strengthening its standing as a leading force in the memecoin space.

BitMEX co-founder Arthur Hayes sees Bitcoin reaching $1M amid economic shifts

Key points:

  • Arthur Hayes has predicted that Bitcoin could reach $1 million due to potential QE policies.

  • Bitcoin’s recent surge has faced short-term correction but remains bullish long-term.

News - As Bitcoin (BTC) continues to surge, fresh price predictions are emerging from top analysts. Arthur Hayes, the co-founder of BitMEX, has shared his latest outlook in an essay titled “Black or White?”, where he explored the potential factors that could push Bitcoin’s value into the seven-figure range. Hayes attributed this ambitious forecast to the evolving economic conditions, particularly under a possible second term for Donald Trump, and the subsequent effects on traditional markets, inflation, and the U.S. dollar.

Hayes’ Bitcoin outlook - In his essay, Hayes pointed to the likely reintroduction of quantitative easing (QE) under a potential second Trump administration. QE, which involves central banks purchasing government bonds to inject liquidity into the economy, aims to lower interest rates and stimulate spending.

Hayes believes this policy, focused on boosting U.S. manufacturing, could lead to inflationary pressures and a weakened dollar. Drawing comparisons to China’s economic model, he referred to this approach as “American Capitalism with Chinese Characteristics.” Hayes suggested that such economic dynamics could drive investors to Bitcoin as a hedge, ultimately propelling its value toward $1 million as inflation outpaces traditional assets.

Bitcoin’s recent trend - Bitcoin recently reached nearly $90,000 before experiencing a slight pullback, now trading at $87,577, a 2.63% drop from its latest all-time high. Despite a modest 0.17% increase in the last 24 hours and strong weekly gains of 17%, technical indicators suggest a cooling trend.

The RSI has decreased from its previous high, and the CMF shows reduced capital inflows, signaling a potential short-term correction. While some profit-taking may be occurring, the overall bullish sentiment surrounding Bitcoin remains strong, maintaining its positive momentum in the longer term.

BlackRock's aggressive BTC purchases push ETF to record $42 billion in assets

Key points:

  • BlackRock's Bitcoin ETF IBIT has reached $42.56 billion AUM, setting a record for rapid growth.

  • IBIT is leading the Bitcoin ETF space with massive BTC acquisitions and $1.7 billion inflows.

News - In a remarkable feat, BlackRock's Bitcoin ETF, IBIT, has reached a total of $42.56 billion in assets. Achieving this milestone in just one-sixth of the time it took other ETFs to reach similar figures, the fund has set a new benchmark for rapid growth. BlackRock has also been actively purchasing Bitcoin, acquiring nearly 9,000 BTC in just the past 24 hours.

Blackrock’s growing success - BlackRock’s IBIT, has now surpassed $40 billion in total assets, propelling it into the top 1% of ETFs by assets under management (AUM). The speed with which IBIT reached this milestone is unprecedented, achieving the $40 billion mark in just 211 days.

Since Bitcoin’s post-election bull market, IBIT has maintained its lead, surpassing previous records, including its all-time high on 8th November. With inflows totaling $230.8 million on 13th November and over $1.7 billion this week alone, IBIT continues to dominate the Bitcoin ETF space.

What’s more? - BlackRock's dominance in Bitcoin acquisition is evident as its ETFs continue to make massive purchases, with over 22,000 BTC acquired in just two days. According to ETF analyst Shaun Edmondson, BlackRock alone purchased nearly 9,000 BTC of the total, solidifying its position as the market leader.

While competitors like Grayscale are reducing their holdings, BlackRock is aggressively adding to its stockpile. As Bitcoin surpasses $90,000 and continues to climb, ETFs like IBIT are not only riding this surge but driving the excitement in the market, showcasing their pivotal role in the ongoing Bitcoin rally.

South Korean YouTuber 'Mr. A' arrested for scamming over $230 million

Key points:

  • South Korean influencer Mr. A scammed 15,000 people out of $232.7 million.

  • Increased scrutiny calls for clearer regulations and investor education on financial influencers.

News - US and South Korean authorities have intensified scrutiny on financial influencers linked to cryptocurrency fraud. South Korean YouTuber "Mr. A" was arrested for a multi-million dollar scam, while Polymarket CEO Shayne Coplan’s raid has sparked speculation about political motives, especially following Donald Trump’s election victory. Polymarket, previously fined by the CFTC, faces continued legal challenges, with US users reportedly bypassing restrictions using VPNs.

The case uncovered - South Korean authorities have uncovered one of the country’s largest cryptocurrency frauds, arresting 215 individuals involved in a scheme orchestrated by a popular financial influencer, "Mr. A."

Operating through a network of fake companies, Mr. A manipulated the value of various cryptocurrencies, scamming over 15,000 people out of $232.7 million. Targeting vulnerable individuals, including the elderly, Mr. A used personal data from his YouTube following to lure victims into fraudulent investments.

What does this case highlight? - This case has ignited a critical discussion on the role and accountability of financial influencers in today’s digital landscape. As more people seek investment advice from social media, the risk of exploitation grows, especially when influencers like Mr. A, with a trusted online presence, misuse their platform for fraudulent schemes.

Experts emphasize the need for clearer regulations governing such influencers and advocate for better investor education to help individuals recognize potential scams and evaluate the reliability of online financial advisors.

Interesting facts

  • The global crypto market cap recently surged to $3.02 trillion, driven largely by Bitcoin’s all-time high, bringing it close to France’s $3.17 trillion GDP and making the digital economy comparable to one of the world’s largest economies.

  • Bitcoin’s market cap soared to $1.75 trillion, outpacing silver once again (but briefly) this year and positioning it as the world’s eighth-largest asset—a milestone it first achieved in March.

  • Michael Saylor's MicroStrategy (MSTR) shares recently surged by nearly 26%, hitting an all-time high above $351 and breaking a 25-year record, with trading volume soaring to an unprecedented $12 billion.

Top 3 coins of the day

Cardano (ADA)

Key points:

  • ADA saw a remarkable 57% surge in the past week.

  • At press time, the RSI showed strong buyer dominance, though a potential pullback looms.

What you should know:

The US election sparked a significant bullish rally in the crypto market, and Cardano’s ADA was no exception. According to CoinMarketCap, ADA surged 8.63% in the past 24 hours, reaching a trading price of $0.58. The Relative Strength Index (RSI) further confirmed the bullish momentum, sitting at 76, indicating strong buying pressure. However, the RSI also placed ADA in the overbought zone, which historically suggests a potential trend reversal. If ADA’s bullish momentum wanes, it may dip below the key support level at $0.54. On the other hand, if ADA continues to maintain its upward momentum and surpasses the resistance level at $0.61, the bullish trend could persist.

Shiba Inu (SHIB)

Key points:

  • SHIB recorded impressive gains, rising 38.54% weekly and 42.12% monthly.

  • Positive and rising CMF signaled strong buying interest, reinforcing a bullish trend.

What you should know:

The memecoin market has been significantly impacted by Bitcoin's bull run, and amidst the OG memecoins, SHIB has experienced a notable 9.07% increase in the past 24 hours. As of the latest data from CoinMarketCap, SHIB has been trading at $0.000026. Technical indicators, such as the Chaikin Money Flow (CMF), have shown a positive reading of 0.20, suggesting steady capital inflows into the asset. If SHIB manages to stay above and break through the resistance level at $0.000028, the bullish momentum could continue. However, given the inherent volatility of memecoins, a potential pullback to the support level at $0.000023 could shift the market sentiment from bullish to bearish.

Pepe (PEPE)

Key points:

  • PEPE surged over 100% in both the past week and month, marking impressive gains.

  • The upward-moving MACD suggested that PEPE is primed for a new all-time high (ATH).

What you should know:

PEPE, the frog-themed memecoin, saw a significant surge on 13th November, as evidenced by the long green candlestick. Currently trading at $0.0000224, PEPE has skyrocketed by 76.25% in the past 24 hours, showcasing an exceptionally bullish trend—surpassing even the OG memecoins. At press time, the MACD indicator was positioned well above the signal line, with green histograms reinforcing the strong bullish momentum. If this upward trajectory continues, PEPE is poised to break through the resistance level at $0.0000244, potentially targeting the $0.0000300 mark.

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