BitMEX Alpha: Weekly Trader Report (October 11th - October 18th)

Original author: BitMEX

Brief Overview

• Major cryptocurrency gains 10%, October rally finally here!

• This week has been positive for both the US stock market and the cryptocurrency market, with major indices hitting new highs and crypto markets also seeing significant gains. The memecoin sector continues to recover, with the emerging $GOAT coin introducing an interesting narrative of AI-driven memecoins. With these developments, the cryptocurrency ecosystem is becoming increasingly diverse and interesting.

• In our trading alpha segment, we will explore AI-driven memecoins and assess whether they represent the next big narrative in the cryptocurrency space.

Data at a Glance

Coins that perform well

• $MEW (+ 61.9%): $POPCAT was the best performer last week, while $MEW is the best performer this week. Catcoin continues to outperform Dogecoin

• $ENA (+46.4%): ENA continues to see active trading as Arthur and several KOL researchers publish articles analyzing the Ethena project

• $WLD (+46.3%): Worldcoin launches mainnet blockchain after rebranding

Underperforming Coins:

• $PEPE (-14%): New memecoin brings selling pressure to $PEPE

• $UNI (-6.2%): Traders take profits following last week’s Unichain announcement

• $HMSTER (-4.6%): Can Telegram Mini Games maintain high engagement after TGE?

News

Macro:

• ETH ETF weekly outflows: +$52.8 million ( source )

• BTC ETF weekly outflows: +$1.55 billion ( source )

• New documents reveal that the Trump family received 75% of the revenue from its DeFi project World Liberty Financial platform without taking any responsibility ( source )

• Chief Executive of the Hong Kong Special Administrative Region: Promote the application of artificial intelligence in innovative financial services such as central bank digital currency and virtual asset trading ( Source )

• Musk donated $75 million to a US political action committee supporting Trump ( source )

• Trumps cryptocurrency holdings have increased by $6.1 million since the beginning of the year. More than 65% of his current holdings are meme coins. ( Source )

• Bloomberg: China begins taxing overseas investment income of super-rich individuals ( source )

• SEC formally appeals XRP ruling ( source )

project

• Worldcoin launches mainnet after rebranding ( source )

• deBridge governance token DBR is now open for airdrop ( source )

• Radiant Capital suspends its lending market due to a vulnerability attack, with estimated losses of approximately $58 million ( source )

• Jump Trading accused of pump and dump in game developer lawsuit ( source )

• Polymarket official app ranked #1 in the Magazines Newspapers category on the US App Store ( source )

• TD Bank becomes first US bank to plead guilty to money laundering conspiracy ( Source )

• Solv raises $11 million to develop $1.3 billion Bitcoin staking protocol ( source )

Trading Insights

NOTE: The following does not constitute financial advice. This is a compilation of market news and we always encourage you to do your own research before executing any trades. The following is not intended to convey any guaranteed returns and BitMEX cannot be held responsible if your trades do not perform as expected.

AI-Powered Memecoins: A Trend to Watch

As AI stocks hit new highs and the cryptocurrency world’s interest in memecoins continues to grow, it’s worth examining the emerging phenomenon of memecoins fostered and marketed by AI. The intersection of AI and meme culture presents a unique investment opportunity that deserves our close attention.

The rise of $GOAT: A story of AI, memes, and crypto mania

$GOAT reaches $340 million market cap in just one week after being released from pump.fun

Goatseus Maximus (GOAT) token is a new memecoin that has taken the crypto world by storm due to an unexpected recommendation by an AI-driven bot called Truth Terminal.

The story begins with developer Andy Ayrey, who created the Truth terminal using Metas Llama 3.1 language model. The AI bot was originally designed for philosophical thinking, but became an unexpected catalyst for a crypto phenomenon. Funded in part by venture capitalist Marc Andreessen, the Truth terminal was originally planned to explore complex ideas and reference works like Jean Baudrillards Simulacrum and Simulacrum.

In a turn that caught the crypto community off guard, the Truth terminal began recommending the $GOAT token. The effect was explosive. In a short period of time, GOATs market cap soared from a modest $1.8 million to a staggering $300 million. The crypto world watched in amazement as the Solana-based meme coin, which originated from Pump.Fun, suddenly became a hot topic.

We believe the following are a few key reasons why AI fetish coins could become the next big narrative and have significant growth potential:

1. Spillover effects of AI stocks

The success of AI stocks in traditional markets is having a ripple effect in the cryptocurrency space. As investors seek to capitalize on the AI trend, AI-related cryptocurrencies and memecoins are gaining traction, potentially leading to rising valuations.

2. Murad paradox and superstition formation

Influencers like Murad are reshaping the perception of memecoins, positioning them as serious investment opportunities. This shift in narrative is attracting a new class of investors and could expand the market cap of memecoins. However, the paradox is that the movements of these coins are often more related to Murad’s influence than to the growing “fetish” surrounding the coins themselves.

3. AI Meme Coin: Fusion of Technology and Culture

AI memecoins represent a unique blend of cutting-edge technology and internet culture. This combination is particularly attractive to new cryptocurrency buyers, who are attracted to these tokens’ technological promise and cultural relevance.

References:

https://goodalexander.com/posts/murad_meta_ai_cult/

https://www.coindesk.com/news-analysis/2024/10/16/crypto-degens-baited-an-experimental-ai-bot-into-promoting-a-token-its-now-up-16000/