Bitcoin Flips Bearish as YZY Memecoin Surges 6,800% Then Slumps
Bitcoin briefly bounced to $144,700 on Wednesday but shifted to a bearish sentiment for the first time since June 2023. Other cryptocurrencies like DOGE, XRP, and SOL followed this trend, while ether remained more stable.
The CoinDesk 20 Index increased by 0.7%, and the CoinDesk 80 Index rose by 0.4%. Analysts maintain optimism about Bitcoin’s long-term prospects, particularly due to Donald Trump’s approval of crypto assets in 401(k)s, expected to support strategic allocations over time.
Derivatives Positioning
- BTC and ETH futures open interest remains above 700K BTC and 14.2 million ETH, indicating directionless trading before the Jackson Hole meeting.
- LINK futures open interest is near record highs with LINK price nearing $27; other top tokens saw declines in open interest.
- HYPE leads with annualized funding rates over 25%, showing bullish trader sentiment.
- BTC futures premium has stalled at nearly 7%, while ether futures open interest approaches 2 million ETH, suggesting institutional preference for ether.
- Bitcoin options show strong demand for puts, while longer-dated ETH options favor calls.
- OTC network Paradigm indicates demand for BTC puts financed by selling calls and mixed activity in ether options.
- Implied volatility for bitcoin and ether remains steady at around 36% and 70%, respectively, indicating no anticipated volatility spikes from Jackson Hole.
Token Talk
- YZY Money, a Solana memecoin linked to Ye, surged 6,800% before falling below $1, illustrating speculative trading around celebrity tokens.
- The token's launch sparked speculation of a hack until Ye confirmed it via video, raising questions about authenticity.
- Token distribution allocates 70% to Ye, 10% to liquidity, and 20% for sale, after initial demands for higher allocation.
- Wallet data shows significant profits for early investors, with one wallet making $1.5 million from trades.
- Liquidity provided was single-sided, allowing large holders to withdraw easily, drawing criticism for potential insider advantages.
- Retail buyers faced losses, highlighting risks associated with insider-heavy allocations during the hype phase.
- Wormhole plans to counter LayerZero’s $110 million bid for Stargate, seeking to extend governance voting for fair evaluation of both proposals.
- Stargate processed $4 billion in July and holds a treasury of $92 million in stablecoins and ether.
- Wormhole argues its bid offers greater long-term value and aims to merge Stargate’s liquidity pools with its cross-chain integrations.