- The Phenom Crypto Letter
- Posts
- The BTC Flash Crash
The Phenom Weekly Update
Welcome to the Phenom Crypto Update, your all-in-one source for staying ahead of the curve in the world of cryptocurrencies. We bring you the latest news, cutting-edge trends, and exclusive alpha alerts from the dynamic world of digital currencies curated by our elite Phenom Analysts.
Subscribe for free
Hey Phenoms,
Welcome back. Never feels good when the markets are down but it is nice to have something besides sideways movement for a change! Generally, August/September are poorly performing months. Hopefully, this fall kicks off some soldi upward price action.
This week we cover:
The Bitcoin Flash Crash 📉
What is Friend.tech 👬
BTC is a low-risk asset?
How to spot a rug pull
Market Rundown
Just like we called last week, volatility is back. The market has been crashing this week and is in a solid state of fear, presenting us with another great buying opportunity.
Bitcoin Flash Crash
As you may have read in last weeks newsletter we expected a return to volatility and boy did we get it. BTC flash crashed last week and drug the entire market down with it. Bitcoin is currently sitting nearly 9% down on the week and we could be in for more pain in the short term.
Here is why:
Short term investors (holders that have held for less than 155 days) are in the red on their BTC. 📉 According to Glassnode, 88% of short term holders are underwater after last weeks crash.
Courtesy of @milesdeutscher
This is bearish in the short term. Over the past week we’ve seen short term holders dumping their holdings to stop losses. This creates sell pressure, further decreasing the price which can lead to more holders underwater and more sell pressure.
Our Take:
We expect this cycle to play out and drive BTC lower going into September (historically BTC’s worst performing month). We will be keeping an eye on key price levels but view this as a short term buying opportunity.
Protocol Preview
Friend.Tech
What is it? Friend.Tech is a new social protocol built on the Coinbase Base layer.
It integrates with Twitter/X to build your social graph.
Users can buy and sell “shares” of people/profiles.
Invite only - right now .
10% transaction fee. 5% goes to protocol and 5% goes to the use who’s shares are being traded.
Right now Friend.Tech is riding a hype train. According to Dune Analytics, Friend.Tech has:
1M+ total transactions
$62.5M in total trading volume
90,000+ unique traders
The top creators have made $100,000+ in revenue
Pretty impressive numbers for a brand new protocol but crypto projects are hard and social apps are even harder.. Time will tell if it stays successful. Right now Friend.Tech is the new shiny thing. Most likely it will continue to grow over the next few months but could see waining interest as the hype dies down.
The Twitterverse
A collection of the most interesting stuff on Crypto Twitter this week
Risky take: BTC is a low risk asset
I’m going to make 3 assertions in this article. Together, if true, they break the world of finance.
It will take a decade or two for the financial world to catch on & adjust accordingly. But you get to read about it here today.
The assertions:
- Bitcoin is actually a… twitter.com/i/web/status/1…— Jesse Myers (Croesus 🔴) (@Croesus_BTC)
7:08 PM • Aug 18, 2023
Still in the accumulating phase. Fear is high, greed is low.
There are 4 Phases of a Bull market.
We’re nearing the end of Phase 1. Here's how to play market cycles so you don’t screw up your best chance at generational wealth.
Here’s your playbook for:
1) Navigating each phase of the bull market
2) Maximizing your profits
3) and… twitter.com/i/web/status/1…— Edgy - The DeFi Edge 🗡️ (@thedefiedge)
11:12 AM • Aug 17, 2023
Looking for new micro caps to ape into for the next 10000x? This is a great guideline for avoiding rug pulls
How can I determine if a project is legit or a rug?
1️⃣ Is the value proposition possible on a technical level?
Often times, rugs have these ambitions that simply aren't possible on a technical level.
2️⃣ Is there a fleshed out whitepaper that details the implementation?
I'm… twitter.com/i/web/status/1…
— Minty (@DeFiMinty)
3:01 PM • Aug 17, 2023
Closing the ledger for now, but the crypto revolution continues. Stay curious, stay bold, and keep chasing those blockchain gains!
Did you like this weeks letter?This helps us refine our topics and bring you more of what you love! Respond to this email if you have any suggestions! |
Forwarded this email and enjoyed it?
Wondering where your friends get all their crypto tips?
Sign up for free
📣 Attention Phenoms! 📣
Are you enjoying the insights, updates, and exclusive content found in our newsletter? We bet you know others who would love it too! Spread the word and make a difference today!
When you refer our newsletter to friends, family, or colleagues, you're not just sharing news—you're connecting them with a community of like-minded individuals passionate about crypto investing. Why keep the knowledge to yourself?
Click the link below and refer our newsletter now.
Reply