Bitget Daily Digest | Trump family project acquires $ENA, ARC reaches new highs against market trends (December 19)      

Market highlights

1. The Fed cuts rates by 25 basis points as expected, signaling a slower pace of rate cuts. Total rate cuts this year now reach 100 basis points. The U.S. Dollar Index (DXY) hits a new high since November 2022. The Fed's dot plot now forecasts two rate cuts in 2025, down from four in September's projection. 

2. Binance Wallet launches its Alpha section, but the initial Telegram link causes confusion. Project selection and user experience fall short of market expectations, sparking intense debate and strong public reaction.

3. Solana's on-chain trends focus on $PENGU and AI agent concepts, with $PENGU accounting for 20% of Solana's 24-hour trading volume. $UFD, $ARC, and $RIF, affected by the Binance Alpha accident, gain traction and become trending tokens.

4. The Trump family crypto project WLFI purchases $250,000 worth of $ENA, adding to its holdings of $ETH, $WBTC, $LINK, $AAVE, $ENA, and $ONDO. With pro-crypto policies in the U.S., WLFI's portfolio movements could become a market indicator. 

Market overview

1. The Federal Reserve's hawkish stance causes BTC to dip sharply to the $100,000 mark, with the broader market experiencing declines. However, small-cap gems like $ARC surge, impressing the market.

 2. The Dow Jones records its tenth consecutive loss, the longest streak since 1974. The S&P 500 drops nearly 3%, marking its largest single-day drop on a rate-cut day since 2001. Gold and U.S. treasury bonds plunge, while the U.S. dollar surges. 

3. Currently at 100,160 USDT, Bitcoin is approaching a potential liquidation zone. A 1000-point drop to around 99,160 USDT could trigger over $294 million in cumulative long-position liquidations. Conversely, a rise to 101,160 USDT could lead to more than $181 million in cumulative short-position liquidations. Given the similar liquidation risks, it's advised to manage leverage wisely to avoid large-scale liquidations during market fluctuations.

4. In the past 24 hours, the BTC spot market saw inflows of $6.3 billion and outflows of $7.1 billion, resulting in a net outflow of $800 million. 

5. In the past 24 hours, $BTC, $ETH, $XRP, $DOGE, and $SOL led in net outflows in futures trading, signaling potential trading opportunities. 

Highlights on X

1. @cryptocishanjia: Community voice vs. top exchange preferences—Insights on memecoins and VC coins

After listing, VC coins often experience sharp sell-offs, leaving retail investors with no floating gains and no opportunity for profit. In contrast, memecoins align more closely with market sentiment and grassroots participation, offering retail users better opportunities. Binance, however, seems to favor VC coins, claiming they expand the boundaries of blockchain. Yet data shows that VC coin profits rely more on exchange users' buying activity than on project fundamentals. The community raises a critical question: Is this a clash of ideals or a battle for profits? Despite promoting user-first values like "users always make the right choice" and "sharing benefits with users," current coin listing strategies diverge significantly from community expectations. @cryptocishanjia calls for a balance between VC coins and community interests, rather than focusing solely on VC interests.

X post: https://x.com/cryptocishanjia/status/1869291827142258704

2. @TechDev: Rare indicators suggest a market rebound

Bitcoin enters its second month of price discovery, while Ethereum remains 20% below its all-time high. Dogecoin has paused after its initial surge. Meanwhile, BTC dominance has reversed, and the U.S. 10-year treasury yield has broken a key threshold. This confluence of rare conditions mirrors past scenarios that led to four-month-long crypto bull runs. A new market rally may be brewing.

X post: https://x.com/TechDev_52/status/1869517825188253986

3. Lam: How to identify secondary pump schemes and capture doubling opportunities？

Secondary pump schemes occur when whales or new players accumulate and drive momentum in old projects, often due to unique narratives, strong team backgrounds, or rediscovered long-term potential. These schemes are ideal for investors with limited PVP (player-versus-player) skills because the signals are clear, such as sudden price spikes and large buy-ins. To capitalize, track on-chain data, including whale capital size, accumulation costs, and follow-up actions. Timely participation is key. Examples like Ban and Obot on the Solana chain demonstrate transparent whale behavior, with clear accumulation and pump patterns, offering retail investors high risk-reward entry opportunities.

X post: https://x.com/0xCryptoWing/status/1869403643566592074

4. Johnny's analysis of LINK's trend and futures market

$LINK is breaking a 1590-day downtrend, with both on-chain and market signals indicating a major breakout. Public support from Trump has further ignited market enthusiasm. The much-discussed "4chan prophecy" could materialize, positioning $LINK as one of the top-performing altcoins by 2025.

X post: https://x.com/CryptoGodJohn/status/1869205298545828001

 

Institutional insights

1.Galaxy Research: NFT market is recovering as trading volumes surge

Article: https://www.coindesk.com/markets/2024/12/18/nfts-are-making-a-comeback-as-trading-volumes-surge-galaxy-research?utm_content=editorial&utm_medium=social&utm_campaign=coindesk_main&utm_source=twitter&utm_term=organic

2.BitMEX: Market crash predicted around January 20; Maelstrom to reduce positions in advance

Article: https://cryptohayes.substack.com/p/trump-truth?utm_campaign=post&utm_medium=web&triedRedirect=true

3.Bitwise predicts Ethereum revival in 2025 driven by institutional interest, RWA growth

Article: https://cryptoslate.com/bitwise-predicts-ethereum-revival-in-2025-driven-by-institutional-interest-rwa-growth/

4.a16z: Optimistic about AI and blockchain integration

X post: https://x.com/cdixon/status/1869167811257344118

 

News updates

1. Powell: Currently not allowed to own Bitcoin and has no plans to change the law.

2. Federal Reserve cuts rates by 25 basis points; dot plot predicts two rate cuts in 2025.

3. Backed by Sina's Huasheng Group, EX.IO has obtained a license from the Hong Kong SFC to operate a virtual asset trading platform.

4. French Lawmakers urge the EU to establish a strategic Bitcoin reserve.

5. Australian Regulator: ASIC files lawsuit against Binance Australia.

 

Project updates

1. WLFI: Trump family crypto project partners with Ethena Labs and acquires $250,000 in ENA.

2. Pump.fun becomes the first Solana protocol to exceed $100 million in monthly revenue.

3. Masa: Decentralized AI data chain completes a new funding round led by Grayscale parent company DCG.

4. BLZ Whale transfers 21.92 million BLZ to Binance, now accounting for 36% of BLZ's total supply.

5. Pudgy Penguins' total sales surpass $500 million.

6. Scroll launches OpenVM, an open-source zkVM framework for instant proofing, transitioning to Type-1 zkEVM.

7. ai16z is preparing to release v0.1, with Eliza independently coding.

8. Sonic Labs plans to launch Sonic Gateway in the coming days.

9. Polygon Community rejects the "$1.3 billion stablecoin yield" proposal.

10. BIO Protocol 's co-founder announces BIO token listing on Solana and proposes airdrops to communities like Big Pharmai.

 

Recommended reads

How to position yourself for the Abstract airdrop tied to Pudgy Penguins? 

Pudgy Penguins' parent company plans to launch an L2 consumer-facing blockchain in January, with an airdrop scheduled. How can users position themselves?

Read the full article here: https:/www.bitgetapps.com/zh-CN/news/detail/12560604432193

 

Base vs Solana: Who will dominate AI agent innovation? 

The AI agent space is fiercely contested. Does Base or Solana have the edge?

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604430221