It’s a monster week for macro with rate cuts, rare earths drama, and earnings from most of the Mag 7, all with major implications for crypto. Plus, also inside:
- BTC ETF outflows: the signal that nailed the bottom
- Fresh ETF wave incoming: altcoin funds go live this week
- Huge tech company moves in both AI and stablecoins
- Coinbase’s x402 smoothing the way for AI agent payments
Chart of the Day
This chart from Glassnode is worth looking back on, as it shows net outflows from BTC ETFs: a pattern that has repeatedly coincided with local market bottoms.
And that signal proved itself again this time, as after the final drop shown on the chart, BTC then surged back up past $116K.
This is the latest in a series of reversals where ETF flow data foresaw the next price move, demonstrating that this data is a valuable tool for spotting pivot points before upside momentum returns.
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Trade of the Day
SOL ETFs are launching (more details on that below), and SOL has reclaimed the 20-day EMA while heading towards the top of a descending channel it has been in since mid-September.
Momentum indicators are starting to flip bullish, with RSI at 52 and the MACD crossing positive, and SOL could be gearing up for a breakout attempt above the top of the falling channel if macro conditions are supportive.
From here, if SOL closes above $210, we can look for initial upside targets at around $235 and then $250. However, rejection from the top of the channel could see it falling back towards the 20-day MA.
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Alpha Leaks
- Streaming platform Rumble, which is backed by Tether, will launch crypto tipping from mid-December, letting its 51 million users reward creators in Bitcoin, USDT, and Tether Gold, using Rumble Wallet.
- Pudgy Penguins announced on X that it will collaborate with DreamWorks’ Kung Fu Panda franchise. There’s no further information yet, but the NFT and web3 brand stated that more will be revealed soon, and it remains the frontrunner when it comes to mainstream crossovers.
- Payments network Zelle, which is owned by a group of major US banks, will expand into using stablecoins for cross-border payments. This marks a significant move towards crypto rails gaining ground within banking and fintech while the GENIUS Act provides regulatory clarity.
- On a similar note, Western Union is planning to pilot a new global settlement system that utilizes stablecoins. Moves like this potentially put pressure on crypto native stablecoin plays.
- Coinbase announced that it is collaborating with Citi, stating that it wants to improve on and off ramps, with an emphasis on integrating digital assets and stablecoins into Citi’s global payments network.
- The US Department of Energy has announced a deal with AMD, the purpose of which is to build two new supercomputers.
- Qualcomm this week revealed its new AI200 and AI250 chips, which are “AI inference-optimized solutions for data centers”, and will see Qualcomm competing with Nvidia and AMD in the AI chip market.
- A new deal between PayPal and OpenAI means that PayPal’s wallet will be embedded into ChatGPT, allowing for buying and selling through the AI interface.
News Roundup
A Busy Macro Week for Markets
The markets have an epic week playing out when it comes to the macro situation, with a ton of catalysts that will set the tone for the rest of the year.
First of all, we’ve got relations between the US and China, and the situation looks positive. Most importantly, news broke on Sunday that China’s rare earths export controls are to be delayed by 12 months, thereby removing the obstacle that first initiated recent fear in the markets.
Plus, ahead of a meeting with Xi Jinping (expected on Thursday), Trump has struck a rare earth deal with Malaysia.
As for how the Xi meeting might go, there have already been strong comments from Treasury Secretary Scott Bessent, stating that a trade framework has been reached, and from China’s Vice Minister of Commerce, again indicating a trade consensus.
Earnings and Rate Cuts
On top of all that, this week brings earnings season, with five of the Mag 7–Apple, Microsoft, Google, Amazon, and Meta–set to report earnings, along with megacorps including Visa, United Health, and Exxon Mobile.
Plus, the next FOMC meeting is on Thursday, and the expectation here is for a 25bps rate cut. This is already priced in by the stock market so Jerome Powell’s remarks are also critical–bulls are looking for confirmation that easing will continue.
Overall then, the ideal setup across the week is US/China trade agreement, positive earnings reports, and an indication that rate cuts are just the start of a new regime. Get all that, and we’re looking at a majorly bullish Q4 setup.
Buy the Rare Earths Dip
US rare earth stocks–names including USA Rare Earth (USAR) and MP Materials (MP)–took a hit on news that trade with China is back from the brink, but this looks like a buy-the-dip opportunity: The US may not need new rare earth sources immediately, but will still be looking to bolster onshore industries, and short-term dips are an opportunity for buyers.
Altcoin ETFs Launching This Week
Despite the ongoing US government shutdown, this week brings a flurry of crypto ETF launches, with the following now lined up:
- The Bitwise SOL Staking ETF to start trading on Tuesday.
- The Canary Funds spot LTC and spot HBAR ETFs both to start trading on Tuesday.
- The Grayscale Solana Trust to convert to an ETF on Wednesday.
Notably, the Bitwise SOL ETF (BSOL) launches with 0% fees for the first three months up to $1 billion in assets, and is aiming to have 100% of its assets staked.
Nasdaq Perps Contract Launches on Hyperliquid
Hyperliquid has taken a major step towards leveraged stock trading onchain with Trade.xyz launching XYZ100, a perps contract tracking the Nasdaq-100. It’s the first equity perp to trade live on the platform, built using the new HIP-3 framework that lets builders deploy their own markets.
Notably, the contract trades in two modes: When US stock markets are open, prices track Nasdaq futures, and when markets close, the system shifts into an internal mode based on Hyperliquid’s own orderbook, smoothing price moves with an 8-hour EMA and capping swings at 5% to avoid extreme gaps.
It’s a setup that opens the door to bringing more stocks into the onchain perps world, with TSLA, NVDA and HOOD tickers listed on Hyperliquid but not yet available for trading.
x402 Gains Momentum
Although it launched months ago, Coinbase-backed on-chain payment protocol x402 is gaining new attention, with a sharp rise in related token activity as the novel sector pushes past $800 million in combined market cap.
At its core, x402 turns the mostly-unused 402 Payment Required HTTP status code into a functional payments layer, allowing AI agents to make direct micropayments using stablecoins. That means no credit cards, no manual setup, and no API keys, which is important because if agents are to interact with real-world services, they need ways to pay.
x402 is chain-agnostic, but Base has been its home turf so far as Coinbase not only helped launch it, but also operates its primary payments facilitator. Projects on Base that are x402-integrated include Ping and Virtuals Protocol–a survivor from the AI Agents hype of late-2024 that just picked up endorsement from Tom Lee’s Fundstrat.
Degen Play of the Day
Lululemon (LULU) is deep in beaten-down territory, with the stock about 65% below its 2023 high, but now moving above the 200-day moving average while RSI is pushing out of oversold levels and potentially stabilizing.
The overall structure looks as though selling is near exhaustion, and the brand still has a strong following, plus it just announced an apparel partnership with the NFL.
This setup certainly isn’t one to blast your life savings into: sentiment was awful and volatility high, but that’s why it’s interesting in terms of value. A reclaim of the $200 level might confirm a cyclical bottom, with upside potential toward $250 and higher if sentiment recovers and traders pile into the reversal bounce.
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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.
