Good morning. We’ve had tons of macro developments over the last 18 hours. Our first two stories will catch you up. Then, we’ve got a really juicy stock long for your Trade of the Day, and a nice memecoin short for your DEGEN Play of the Day.
All of that, plus . . .
- Bitcoin’s current liquidation heatmap,
- stablecoins are booming,
- and your Alpha Leaks.
Chart of the Day
While many market participants are feeling despondent about Bitcoin’s current price action, the Bitcoin liquidation heatmap is signalling something interesting.
From CoinGlass, the major liquidity clusters around Bitcoin are now heavily favored towards the shorts, with hundreds of millions in leveraged positions between $112K to $113.3K. Conversely, there’s not much liquidity left for the longs below current prices. There’s a bit at $109.7K, but it’s not significant.
Therefore, since Bitcoin likes to go liquidity hunting, and is attracted to the larger liquidation zones, don’t be shocked if we get pump back up to $113K in short order.
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Trade of the Day
Nexgen Energy (NXE, Stocks) is our Trade of the Day. And this is one of the better looking charts that I’ve seen in a long time. Let’s break this down.
NXE’s prior ATH was $8.88. That broke and then held as support in late September. Now, you can see that prices are pushing into the top of this small range that’s been printed over this past month, at $9.80. Basically, NXE looks primed for new ATHs.
Now check out Monday and Tuesday’s volumes. Pretty damn big. This is probably our best leading indicator that a larger move is in the works. Finally, look at the MACD. A solid bullish crossover.
So given everything we’ve discussed, we like market longs at current prices around $9.70.
Want more real-time setups and trade calls? Join our Inner Circle community.
Alpha Leaks
- Circle [CRCL, Stock] launched the public testnet for its new L1 – ARC – yesterday. ARC is poised to be a major crypto rail for the Wall Street suits. Moreover, look at the price of CRCL right now. Things have significantly cooled off since the ICO, so perhaps taking another look at potential buys here makes sense.
- Coinbase’s [COIN, Stock] earnings call happens today, after US markets close. Look for earnings far above or below expectations for a potential trade.
- Ethereum [ETH, Crypto] might be getting another staked ETH ETF, via Blackrock. The company’s application for such is up for a SEC decision today. If approved, it could act as a significant tailwind for ETH, as investors might pile into it for the asset exposure plus the yield.
- Lighter’s [Ticker Pending, Crypto] native token release is coming soon. This is your friendly reminder. The Season 2 points program is happening now, and points are being distributed on Fridays. Points will be converted to tokens when the token generation event happens. Given the DEX narrative, and Lighter’s position in the current DEX perp rankings, this could be one of the bigger airdrops in 2025.
- MegaETH’s [MEGA, Crypto] token ICO started Monday on Sonar. MegaETH is an upcoming Ethereum L2 that’s got a bit of buzz around it. The ICO thus far has pulled in $450M, which is nine times above the project’s fundraising target.
- Peloton [PTON, Stock] received an interesting analysis from Jeff Park (CIO, ProCap BTC) on X. Now normally I’d never talk about PTON, because this stock was a steaming pile in the post COVID stock boom, and it had short traders seeing dollar signs. But, after reading Park’s post, plus PTON’s current price (i.e. super low), there might be an opportunity here.
- Vultisig’s [VULT, Crypto] native token dropped Monday. Vultisig is an open-source multi-chain crypto wallet that offers a new way to secure crypto other than seed phrases. And VULT accrues value via swap and bridge fees.
News Roundup
Breaking: Trump / Xi Meeting Successful
President Trump and Leader Xi concluded their trade meeting in Busan, Korea Thursday afternoon, and it looks to have been a success.
After the meeting ended, Trump stated that he and Xi agreed on “almost everything”, that he expects a new trade deal to be signed soon, and that current tariff levels against China will be dropped 10% immediately (i.e. from 57% to 47%). Chinese officials also released a post-meeting statement, stating that the two governments “reached a consensus”, and that the latest rare earth export controls against the US will be suspended.
Moreover, Trump plans to visit Beijing in April, and he invited Xi to visit the US.
All in all, this was about the best outcome we could have asked for. And Bitcoin responded accordingly, moving back above $111K and away from earlier daily lows at $108K.
Having said that, understand that the US / China relationship is fragile, and any progress can quickly unravel. However, the details from this meeting show that cautious optimism is warranted.
Fed Cuts 25 BPS; Powell Talks Tough on December Rate Cuts
Our central banking overlords reduced their benchmark Fed Funds rate yesterday 25 bps, to 3.75% to 4%, amid moderate economic growth, slower job gains, and slightly elevated inflation. The Fed governors approved the cut with a 10-2 vote. They also announced an official end to quantitative tightening by December 1st.
Now everything above was positive for prices, that is until Papa Powell garbled some mean sounding words at his press conference, which spooked both the equity and crypto markets.
“[A December cut is] far from a foregone conclusion.” And that was all it took to drop the world’s hardest money by $3K. Sigh.
Now due to the above garblings, the markets are now projecting a 65% chance of another 25 bps cut on Dec. 10th, which is down from 90% since before yesterday. But perhaps the most interesting thing about all of this is the fact that we’re still in a government shutdown. Meaning, the Fed is flying blind here, because they don’t have their full data set handy.
Regardless, most everything above is noise. The Fed probably still cuts in December, and the US / China trade war appears to be thawing. So hopefully, any dips in prices over these last 24 hours are just solid accumulation opportunities.
Stablecoins are Booming
The stablecoin ecosystem continues to expand rapidly. For context, the total stablecoin market cap stands at $317B, which is about 8% of crypto’s overall value. Citi analysts project this could reach $4T by 2030, driven by institutional adoption and on-chain payments.
Now, here’s the key developments from the past 72 hours.
- Japan’s JPYC: Announced Monday, this yen-pegged stablecoin is backed 1:1 by Japanese deposits and government bonds. It’s freely convertible and can be used globally. So expect to see it on a decentralized exchange near you soon. Additionally, the issuer is charging no transaction fees when using the token, because they’re accruing the yield on the underlying bonds (i.e. similar to the US stablecoin issuers).
- Western Union is Launching a Stablecoin on Solana: It will be called USDPT, and it arrives to Solana in early 2026. This announcement comes after company records show that 50% of Western Union transactions now happen via their digital wallets.
- Circle’s Starts Public Testnet of ARC: Testnet operations launched this week. BlackRock, Visa, and HSBC are experimenting with ARC now. This blockchain will give institutions regulatory-compliant settlements for stablecoins, tokenized assets, and FX transfers.
The amount and speed of development in the stablecoin space is jaw-dropping. And given the market cap projections, savvy investors should consider getting exposure earlier rather than later.
Degen Play of the Day
Still mad at Orange Man for rug-pulling you and cooking your bags in McDonald’s frying oil? Well, here’s your chance to get some cash back. Shorting TRUMP is your DEGEN Play of the Day.
For whatever reason, TRUMP has pumped 38% since Monday. And just as a word of caution for the bears, the move was made on some pretty big volumes. But I digress. Anyways, it appears that prices might be rolling over now. That’s because we’re printing some nice bearish RSI divergence, and the MACD is on the cusp of a bearish crossover.
Recommend a stop loss on this short at $8.75 with a take profit between $6 to $7.
Legal Disclaimer
Wealth Mastery (Lark Davis, and the Wealth Mastery writing team) are not providing you individually tailored investment advice. Nor is Wealth Mastery registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. Wealth Mastery is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.
You can find a full disclosure of all my crypto & venture investments here.
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
