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Bitget Research: Mt. Gox BTC Repayments Spark Market Panic, AI Sector Leads Rebound

Aaron & Tommy
2024/06/25
Bitget Research: Mt. Gox BTC Repayments Spark Market Panic, AI Sector Leads Rebound
In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

Overview

The cryptocurrency market experienced an overall decline in the last 24 hours, with a rebound observed in altcoins. Mt. Gox's announcement of BTC repayments triggered market panic, while the AI sector demonstrated positive momentum. The highlights are as follows:
  • Sectors with strong wealth creation effect: AI sector, Solana sector, and ETH ecosystem.
  • Top searched tokens and topics: Orderly, Berachain, and Moonshoot.
  • Potential airdrop opportunities: Scroll (Scroll Session 1) and Sanctum (Sanctum Profiles).
Data collection time: June 25, 2024, 4:00 AM (UTC)

1. Market Environment

The BTC market has seen an overall decline in the past 24 hours, with BTC dipping to a low of $58,400 before rebounding. The main catalyst was Mt. Gox’s announcement yesterday regarding the initiation of BTC repayments, coupled with market concerns over the potential dumping of its 140,000 BTC holdings, which triggered panic selling sentiment. BTC surged 5% after reaching $58,400 and is currently fluctuating around $61,500. BTC futures funding rates have turned negative. Keep an eye on potential rebound opportunities in the near future.
In U.S. capital markets, investment aggregation began to decline as NASDAQ fell by 1.09% and NVIDIA plummeted by 6.68% in a single day, marking a 15% decline over three consecutive days. Fed net liquidity increased by $400 billion in a week. The last short-term surge occurred during the Silicon Valley Bank collapse, affecting BTC prices due to liquidity issues caused by the collapse.

2. Wealth Creation Sectors

2.1 Sector Movements: AI Sector (AGIX, FET, OCEAN)

Primary reasons:
  • Binance recently announced support for the merger of FET, AGIX, and OCEAN into ASI, causing a buzz in Europe and the USA and garnering high community interest.
  • Assets in the AI sector have likely bottomed out, with technical indicators showing potential for a rebound.
Gainers: AGIX, FET, and OCEAN increased by over 20% in 24 hours.
Factors affecting future market conditions:
  • Post-market trading activity: Monitor whether trading volume in the sector continues to grow during the current rebound phase. If trading volume remains high and coin prices continue to rise, this suggests that trading activity can be maintained and sustained.
  • Future performance of the three merged projects: Stay informed about SingularityNET's X account. A recent technical AMA discussed the project's future development. Innovative products could support long-term holding strategies.

2.2 Sector Movements: Solana Sector (SOL, POPCAT, WIF)

Primary reason: SOL was the first to reach its previous low, touching the $120 mark before rebounding, driving up the value of memecoins in the ecosystem.
Gainers: SOL, POPCAT, and WIF rose by 8%, 60%, and 20%, respectively, within 24 hours.
Factors affecting future market conditions:
  • Community information: Memecoin operations significantly influence market movements. Stay updated on AMA sessions and X posts for timely trading opportunities.
  • Changes in open interest: SOL's recent increase in open interest suggests increased hot money inflows. Utilize tv.coinglass to gauge the movement of major funds and monitor futures data, particularly focusing on the uptick in net long positions. Keep an eye on futures data for any increase in open interest (OI) and trading volume. Such trends typically signify heightened bullish sentiment, implying potential stability in holdings.

2.3 Sectors to Focus on Next — ETH ecosystem projects

Primary reason: The S-1 filings for Ethereum spot ETFs are likely to get approval from the SEC in early July, which could generate hype around ETH ecosystem assets. This sector has seen a significant pullback recently, creating an investment opportunity.
Specific tokens:
  • UNI: Uniswap, the first DeFi Swap project on the blockchain, generated over $2 million in transaction fees over the past 24 hours, indicating substantial revenue.
  • LDO: A leading LSD project within the ETH ecosystem, with a TVL of $34.4 billion and a valuation just under $2.5 million, indicating it is relatively undervalued.
  • PENDLE: The project's TVL continues to rise, now standing at $6.6 billion. Increased stablecoin market caps and demand in the restaking sector support PENDLE's services during the bull market.

3. Top Searches

3.1 Popular DApps

Orderly:
Orderly Network, an omnichain derivatives liquidity layer, increased token distribution by 50% for its Merits points program, raising the total airdrop allocation from 59 million to 92 million tokens. Consequently, the total airdrop supply will increase from 10% to 13.3%. Additionally, the points promotion “The Road to The Order” has been extended for another eight weeks, but it may end early.

3.2 X (former Twitter)

Berachain:
According to The Block, Berachain's liquid staking protocol, Infrared, has received an undisclosed investment from Binance Labs. The funds will be used to develop the protocol, expand the team, and conduct audits.

3.3 Google Search (Global and Regional)

Global focus:
Moonshoot:
DEX Screener launched "Moonshot," a token issuance and trading platform challenging pump.fun. The launch platform adheres to the principle of being unruggable, LP burned, and ownership renounced. Additionally, once the token's market cap reaches 500 SOL (approximately $677,000), all remaining tokens and liquidity will be migrated to Raydium.
"CTO meaning" made it to the list because the term was mentioned in a press release. In the meme community, it stands for "Chief Troll Officer", referring to a concept token driven/issued by the community.
Regional focus:
(1) Asia: The phrases "why crypto is down today" and "greed and fear index" are trending in several parts of Asia, indicating that investors are highly concerned about the reasons behind the market downturn.
(2) Europe and America: There are no significant trends in these regions, as trending tokens and terms vary by country or region. For example, Italian traders are focusing on SHIB, NOT, and SAND, while German users are following Raydium and ARKM, and UK users are interested in TURBO and Moonshot.

4. Potential Airdrop Opportunities

Scroll - Scroll Session 1
Scroll, a well-financed Layer 2 blockchain, recently announced the launch of Scroll Session 1. Unlike Session 0, where users could earn points simply by depositing tokens in their wallets on the Scroll chain, Session 1 requires users to deposit assets into certain officially designated protocols.
How to participate: (1) The officially recommended DEXs are Ambient and Nuri, while the recommended lending protocols are Aave and Rho Markets.The scoring formula is Marks = Value x Action x Time. Refer to the official blog for more details: https://scroll.io/blog/session-one-defi-on-scroll
Sanctum - Sanctum Profiles
Sanctum is a liquid staking protocol on Solana with a current TVL exceeding $750 million, ranking fifth in the Solana ecosystem. The project recently concluded the Wonderland points promotion and released Sanctum Profiles (in beta) yesterday. Sanctum Profiles serve as the identities of users within the Sanctum world and may evolve into a larger DID product in the future.
How to participate: (1) Go to https://app.sanctum.so/profile, connect your wallet, and click Create a Profile to edit your information. (2) This could become one of the criteria and methods for $CLOUD token airdrops or anti-sybil measures.
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