Good morning. Rarely does the crypto market leave you speechless. But today is one of those days. Man…over $19 billion in liquidations in the past 24 hours…that’s worse than Covid and worse than FTX. It’s a sad day for the market and a lot of people are hurting. So let’s try to unpack what just happened.
All of that, plus your…
- Chart of the Day. A closer look into the liquidations.
- Trade of the Day. BTC is the one to watch.
- Degen Play of the Day. DOGE looks interesting.
Chart of the Day
It’s been a brutal few hours to say the least, with $19.3 billion wiped off the crypto market in the largest liquidation event ever.
- Covid crash: $1.2 billion in liquidations
- FTX crash: $1.6 billion in liquidations
- Dumptober: $19.3 billion in liquidations
Longs took 86% of the hit. The market moved so fast that stop losses didn’t even work. Exchanges stopped working. ETH fees went insane.
We’re sorry to anyone who got caught up in this with trades open when the cascade happened. This sucks. This hurts a lot. This is all part of the high risk, high reward game that we play. It’s okay if you need a minute…go touch some grass. Then dust yourself off and get ready to rebuild.
The market has always bounced back, and you too will come back stronger.
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Trade of the Day
The silver lining is that despite the biggest liquidation event in history, Bitcoin closed well above our last local low at $108K. Today’s candle wick is resting right on that ascending support line. We’re watching the RSI and CMF closely here to look for bottoming signals and bullish divergence.
Whilst most of the charts look like trash right now, Bitcoin’s is the one to watch to determine where we go next. It’s another dip buying opportunity, with some dry powder reserved for if we go lower.
Want better breakdowns? Go Premium for TA reports, weekly market insights, and access to Lark’s personal portfolio.
Alpha Leak
- Sui has teamed up with Ethena to build its first native stablecoins suiUSDe and USDi with BlackRock’s BUIDL fund backing USDi. Both stablecoins are expected to launch before the end of the year.
- Aster has completed a buyback of 100M tokens but has delayed its Stage 2 airdrop originally planned for October 14th due to “potential data inconsistencies.” The airdrop has initially been rescheduled for October 20th.
- Bonk has been added to the balance sheet of Nasdaq-listed Bonk Inc, previously Safety Shot [BNKK]. The company has already bought 2.7% of Bonk’s circulating supply and the plan is to get to 5% by the end of the year.
- Monero has deployed its Fluorine Fermi upgrade to improve network security, enhance wallet functionality and block spy node risks. Despite Monero being the default privacy play, Zcash and Railgun have been leading the privacy renaissance. This may finally give Monero a chance to catch up.
- Ethereum could become the home of AI agents after unveiling a new EIP, ERC-8004: Trustless Agents. If this gets successfully deployed into the testnet and eventually the mainnet, this will lay the foundation for AI agents to operate without centralized intermediaries.
Go Premium to read this week’s report on STBL, the new protocol trying to flip the stablecoin model inside out to become the next-gen stablecoin.
News Roundup
Trump Speaks On Truth Social And Markets Puke
It all started with one post on Truth Social from President Trump and ended with almost $20 billion in crypto market liquidations. But something’s off here. Trump gets the blame for everything, but this was something else.
Trump threatened a new 100% tariff on imports from China and sent financial markets into a meltdown like it’s April all over again.
- S&P 500 fell by 2.71%
- Nasdaq fell by 3.58%
- Bitcoin fell by 17%
- Sui fell by 83%
- Atom fell by 99.9%
Sure, we’d expect alts to nuke in this type of situation, like they did in April. But you don’t get a $19 billion liquidation event like this without some market manipulation going on.
While alts were down to almost $0 on some centralized exchanges like Binance, on-chain data didn’t look anywhere near as bad. All we can do is speculate for now, but if we had to guess, it wouldn’t surprise us if this was caused by either a massive market maker blowing up or by a technical issue on an exchange.
It’s been an insane 24 hours and it certainly feels like more details will be revealed as the hours and days go on. Stay safe out there.
Morgan Stanley Is Lifting All Crypto Restrictions
Starting from Wednesday October 15th, Morgan Stanley’s team of financial advisors will be able to recommend crypto to any client. Even in retirement accounts. Previously, this was limited to just those with an aggressive risk tolerance and at least $1.5 million in assets.
This is huge because Morgan Stanley is now recommending up to 4% allocation into crypto. Even if a fraction of this money flows into crypto, the market is going to feel the pump.
Given the bloodbath that’s just happened in the market, the timing of this couldn’t have been worse. But as sentiment recovers, this is going to be extremely bullish for the market.
Bernstein: Bitcoin Miners Are Unexpected AI Winners
Whilst there’s been growing concerns of an AI bubble this week from The IMF, The Bank of England, Jeff Bezos and JPMorgan, Bernstein believes Bitcoin miners are the unexpected winners in the AI infrastructure boom.
But when you really think about it, it’s obvious…Big tech needs AI and AI needs energy…a lot of it and who already has it in abundance? Bitcoin miners, of course.
That’s why in Bernstein’s new report that dropped on Friday, they say the top 3 factors for data center site selection are:
- secure grid connection
- cost of power
- access to renewable energy
And its top Bitcoin miner pick goes to…IREN:
- Up 123% in the past month
- Up 519% year-to-date
- Up 50% since Bernstein raised its target to $75 in September
Bernstein expects IREN’s AI pivot to represent around 87% of its enterprise value by 2027. What Bernstein is really saying is…What AI bubble? We’re going higher.
❗REMINDER: Not your keys, not your crypto❗
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I have been using Ledger wallets since 2017 and I love them.
Degen Play of the Day
DOGE is one of the only charts holding up well on the 4-hour and the weekly chart from what we can see right now. Whilst there was an ugly wick down during the bloodbath, the price is back within the ascending channel it’s formed in recent months.
If DOGE can hold this level, then as the market recovers, we should see a return to the $0.30 range toward the top of the channel. But this is a spot buy, not leverage.
Town Square
Win of the Day
Things were going well this week in the Discord group, before the events of yesterday unfolded. But we don’t want this win to go to waste. Thanks to the deep dive analysis we shared in the Discord on PancakeSwap, Evotrend was able to open a 5x long on CAKE/USDT and successfully close the position with a 42% profit. Congrats, buddy!
Stay safe out there during this sudden change of market conditions. But that’s what the Discord group is for – real-time updates to help you navigate the market and support each other during tough times.
Final Notes
Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.
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See you next time!
Lark and the Wealth Mastery Team
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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.
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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.
