Bitget Daily Digest | BTC plunges as market declines, Financial Times recognizes memecoins' soaring value (December 10)

Market highlights

1. Modular framework $MOVE has been listed on mainstream exchanges, generating significant social media interest and steady price action. $BTC briefly plunged to $94,000 before rebounding, while the broader market experienced losses. Over the past 24 hours, total liquidations across the market reached $1.711 billion, primarily long positions. The total crypto market cap fell by 7.5% in 24 hours, with funding rates for futures on major CEXs declining across the board.

2. Pudgy Penguins and its sub-series, Lil Pudgys, hit record-high floor prices, surpassing BAYC in market cap and solidifying their position as the second-largest NFT collection. The Rune sector attracted significant capital inflows, pushing its total market cap beyond $1.76 billion. Meanwhile, $DOG's market cap soared close to $1 billion despite not being listed on top-tier exchanges. 

3. The Financial Times made a rare acknowledgment of the soaring value of memecoins like $PEPE, $BONK, $PNUT, and $CHILLGUY, fueled by high levels of speculative interest. Pump Science revealed its roadmap, announcing mouse experiments for $URO and $RIF set to begin next January. This blend of crypto narratives and scientific research could spark a new wave of market speculation. 

4. Iran's cryptocurrency holdings now account for one-third of the value of its gold market. The Bitcoin Act of 2024 has renewed calls for the U.S. to establish a strategic Bitcoin reserve. Russian lawmakers are advocating for a Bitcoin reserve to counter sanctions. Jetking Ltd has become India's first publicly traded company to adopt Bitcoin as a reserve asset. Positive advancements continue to unfold, fueling the global adoption of cryptocurrency. 

 

Market overview

1. BTC briefly plunged to $94,000 before rebounding, with the broader market experiencing widespread losses. Meanwhile, smaller altcoins gained attention through coordinated pump activities.

2. U.S. stocks closed lower, while Chinese concept stocks rallied significantly. Commodities like crude oil and gold rose, and offshore RMB briefly strengthened past ¥7.26.

3. Currently standing at 97,361 USDT, Bitcoin is in a potential liquidation zone. A 1000-point drop to around 96,361 USDT could trigger over $90 million in cumulative long position liquidations. Conversely, a rise to 98,361 USDT could lead to more than $130 million in cumulative short position liquidations. Both long and short positions should exercise caution and manage leverage prudently to avoid large-scale liquidations.

4. Over the past day, Bitcoin saw $2.12 billion in spot inflows and $2.14 billion in outflows, resulting in a net outflow of $20 million.

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

 

Highlights on X

1. AB Kuai.Dong: Challenges faced by the Bitcoin ecosystem

The expectations and challenges for the Bitcoin ecosystem are becoming increasingly clear. Early hopes of replicating the success of Ethereum's ecosystem have waned as Bitcoin’s price surged, limiting the ability of its Layer-2 (L2) and ecosystem projects to outperform. Many related projects are overvalued and struggle to compete with Ethereum and Solana. Bitcoin's positioning as "digital gold" has ironically dampened on-chain activity and liquidity flow. While substantial institutional and VC investments are pouring into Bitcoin L2 projects, their future success will face a critical test during the token issuance wave anticipated in Q1 2025. The growth of the Bitcoin ecosystem could also be hindered by the stagnation of its Layer 1 (L1) foundation, as excessive infrastructure and resource demands present significant long-term challenges.

X post: https://x.com/_FORAB/status/1865963239932326125

 

2. Leo the Horseman: Splitting as Merlin's path to success

Project teams have increasingly adopted splitting strategies in the recent period. For these splits to succeed, they require retail-friendly trading tools and effective market cap management by the project team. A prime example is http://BTC.fun on Merlin, where project token will be launched and bridged to MerlinSwap once the funding target is met. If the goal isn't achieved, participants will receive a full refund—a feature that has generated significant market buzz. Its flagship token, $Party, has seen notable success through airdrops, with its market cap reaching $30 million. Furthermore, the platform's integration with Pinkpunk caters to retail trading preferences. Future opportunities include taking long positions on the main token $Merl and the flagship token $Party, as well as exploring PvP features on BTC.fun to harness innovative strategies and capitalize on evolving market dynamics.

X post: https://x.com/LeotheHorseman/status/1865404567644746154

 

3. @KuiGas: Movement—The airdrop bonanza and symbiotic growth with users

With its airdrop mechanism and the support of top exchanges, the Movement project is one of the best targets for underdogs seeking a breakout opportunity in 2024. Valued at $1.5 billion, the project allocates $150 million for airdrops, with expected individual returns ranging from $500 to $1000. The author highlights that the Web3 ecosystem thrives on collaboration between users, fund providers, and protocol owners. Early participants, often seen as "freebie hunters," are key contributors and ecosystem builders. They deserve equal representation, rather than being manipulated by project teams.

X post: https://x.com/KuiGas/status/1866081959589577202

 

4. s4mmy.moca: AI agent analysis: smart engagement vs market cap

After a 7-day surge in the AI Agent market, a profit-taking phase has set in. Leading projects like AIXBT, GOD, and ALCH are experiencing declines in market cap and social engagement (SE). Despite this, ZEREBRO remains a strong long-term contender due to its validator and buyback mechanisms, while ALCH maintains a mid-tier position with new features like multiplayer gaming and application management. Emerging projects such as AI agents supported by Arbitrum and Nibiru are emerging, attracting capital and market attention. Overall, the trend indicates a rotation of capital from established leaders to new narratives. While profits are being realized, infrastructure-heavy and innovation-driven projects still hold long-term potential.

X post: https://x.com/S4mmyEth/status/1866042514915852682

 

Institutional insights

1.Bitfinex: Bitcoin remains bullish in the medium term, provided ETF inflows continue.

Article: https://www.bitcoininsider.org/article/264933/bitfinex-alpha-btc-consolidating-100000

2.CryptoQuant: Ethereum funding rates hit multi-month high, indicating a bullish momentum but a potential correction may occur.

X post: https://x.com/cryptoquant_com/status/1866139723288510477

3.QCP Capital: The market is fluctuating at a low level and may maintain this trend during the holiday period. A bullish outlook for ETH may need to wait until after January.

Article: https://t.me/QCPbroadcast/1376

 

News updates

1. Trump’s second son: U.S. can become a crypto superpower with "sensible" regulation.

2. Iran's cryptocurrency holdings are equivalent to one-third of the country's gold market.

3. The BITCOIN Act of 2024 proposes that the U.S. government establish a strategic Bitcoin reserve.

4. The South Korean virtual asset tax delay bill is stalled but may be implemented as scheduled next year.

5. South Korean President Yoon Suk Yeol has been banned from leaving the country, and the country's stock market continues to decline.

 

Project updates

1. Magic Eden: Solana NFT traders will be allowed to trade with ME and receive token rewards from sales.

2. FLOKI announces the launch of its debit card.

3. PancakeSwap: 8,587,275 CAKE, valued at approximately $34 million, have been burned.

4. Circle: CCTP (Cross-Chain Transfer Protocol) Version 2 to launch in early 2025.

5. TON to perform validator software update on December 17.

6. Polyhedra releases its latest roadmap to build blockchain infrastructure for AI.

7. Merlin Chain enters into a strategic partnership with Telegram's innovative reward platform Timon.

8. BUMP, the new PUMP launchpad on Base Chain, is officially live.

9. Jupiter community approves the proposal for a new round of Jupuary airdrop to distribute $700 million JUP tokens over the next two years.

10. BabyDoge announces that puppy.fun will be launching this week. A portion of the fees will be used to burn BabyDoge tokens

 

Recommended reads

Amazon proposes Bitcoin treasury, Microsoft to vote soon—will big tech turn to Bitcoin for inflation hedging? 

An increasing number of tech giants are exploring Bitcoin as part of financial strategies to safeguard assets.  Recently, the National Center for Public Policy Research, a Washington think tank, submitted a shareholder proposal to Amazon, suggesting that it include Bitcoin in the company's financial reserves to mitigate inflation risks.

Article: https://www.bitgetapp.com/zh-CN/news/detail/12560604407621

 

The evolution and final act of memecoins in the current cycle

Dubbed the "Meme Supercycle" by many,  this cycle has drawn significant capital to the market as well as young traders looking for asymmetric returns. Meme trading has witnessed noticeable changes compared to the previous cycle, particularly in platform preferences, trading behaviors, and selection logic for targets.

Article: https://www.bitgetapp.com/zh-CN/news/detail/12560604407341