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Bitget Research: Cryptocurrency Market Sees Volatile Decline, BGB Sets a New Record High

Aaron & Tommy
2024/04/02
Bitget Research: Cryptocurrency Market Sees Volatile Decline, BGB Sets a New Record High
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 trend for spot BTC ETFs reversed, turning into a net outflow of $85.7 million. BTC experienced a sharp drop to the $66,000 mark. The rise in the U.S. dollar index and a slight increase in the yield of 10-year U.S. Treasury bonds put significant pressure on the cryptocurrency market.
  • Sectors with strong wealth creation effects: POW sector (BCH, LTC) and Memecoins (BOME, MEME, WIF).
  • Top searched tokens and topics: COQ, JUP, BGB, CORE, and Farcaster.
  • Potential airdrop opportunities: Morph and Aries Markets.
Data collection time: April 2, 2024, 4:00 AM (UTC+0)

1. Market Environment

The market experienced volatile declines yesterday, with BTC dropping sharply to the $66,000 mark, adversely affecting the overall wealth effect in the market. The net inflow state of BTC spot ETFs reversed, with a significant outflow of $85.7 million in traditional funds through spot BTC ETFs yesterday, marking a critical reversal in fund trends. Long positions experienced brief liquidations, resulting in significant losses for bullish traders.
The U.S. ISM Manufacturing PMI rose above the 50-point mark for the first time in a year and a half, indicating the U.S. economy remains strong, which greatly reduced the likelihood of a Federal Reserve rate cut in June. This indirectly caused the U.S. dollar index to rise to the 105 mark and the yield on 10-year U.S. Treasury bonds to increase by 11.7 basis points. The rise in the U.S. dollar index and bond yields negatively impacts the short-term sentiment for the crypto market, but the long-term trend remains unchanged, presenting an opportunity to buy the dip.

2. Wealth Creation Sectors

2.1 Sector movements — POW sector (BCH and LTC)

Main reasons: 1. BCH is one day away from halving, becoming a focal point in the market; 2. The post-halving selling pressure for BCH has decreased while the mining costs have increased.
Gainers: BCH surpassed $700, and LTC briefly surpassed $110 yesterday.
Factors affecting future market conditions:
  • BTC performance: The performance of PoW tokens is highly correlated with BTC. If BTC rises, PoW tokens generally trend upwards. It is essential to monitor BTC's pullback positions, as the PoW sector is expected to outperform BTC during the rebound, meriting continued attention.
  • Media exposure: BCH's upcoming halving is expected to receive considerable media coverage within the circle, marking a high traffic for BCH. If BCH does not experience a significant price increase within 1–2 days after media exposure, it may be worth considering taking profits.

2.2 Sector movements — Memecoins (BOME, MEME, and WIF)

Main reasons: 1. Vitalik Buterin stated that memecoins bring value to the ecosystem, supporting the issuance of memecoins; 2. New memecoins completed their consolidation and began a new upward trend.
Gainers: BOME rose by 8.4% in 24 hours, MEME by 8.3%, and WIF briefly surpassed $4.8.
Factors affecting future market conditions:
  • Traffic and exposure: The value of memecoins mainly lies in their ability to create a wealth effect. If memecoins continue to trend upward and receive media exposure, it will attract more users to speculate, which in turn provides solid support for their prices.
  • Project narratives: Memecoin projects will continue to create trading opportunities through narratives. Users are advised to pay attention to AMA events hosted by memecoin projects. If a project announces plans for promotions, product updates, or token operations during an AMA, it could be a good opportunity to enter the market.

3) Sectors to focus on next — BTC ecosystem

Main reason: CORE, a project within the BTC ecosystem, has seen a 3x increase in the past three days, highlighting a significant wealth effect. Market funds will probably continue to flow towards BTC ecosystem assets.
Specific tokens:
  • CORE: Plans to introduce BTC staking into its consensus mechanism in Q2 this year, building a DeFi ecosystem within the BTC ecosystem.
  • STX: Stacks' ecosystem development has been solid, and the overall segment TVL continues to reach new heights. The Nakamoto upgrade is expected to take place around April 15, greatly enhancing performance. The project is a solid BTC L2 target to buy the dip in the near future.

3. Top Searches

3.1 Popular DApps

BOB (Build On Bitcoin):
BOB (Build On Bitcoin) is an EVM-compatible Bitcoin Layer 2 network, where developers build decentralized applications (DApps) on top of Ordinals, Lightning, and Nostr. On March 28, BOB announced the completion of a $10 million seed funding round, led by Castle Island Ventures, with participation from Mechanism Ventures, Bankless Ventures, CMS Ventures, and UTXO Management. According to DefiLlama data, BOB Fusion's TVL surpassed $100 million, making it the protocol with the fastest TVL growth among protocols with a TVL of over $50 million in the past few days.

3.2 X (Former Twitter)

COQ:
Coq Inu is a memecoin based on the Avalanche blockchain, issued with a 100% fair launch. The token was initially created by a group of long-term friends and community members at the Barcelona Avalanche Summit. On March 15, the Avalanche Foundation stated in its official blog that it holds five community tokens: Coq Inu, Gecko, Kimbo, NoChill, and Tech. COQ has risen by 60% over the past month, while in the past 24 hours, it pulled back by 13% along with the broader market. Avalanche's leading memecoins are likely to experience a second wave of speculation and break their all-time highs, providing an opportunity to buy.
JUP:
Renowned tokens within the Solana ecosystem saw a general uptrend yesterday. Driven by business data, JUP and JTO broke their previous highs. In addition to the already popular WIF, JTO, and JUP, investors are advised to pay attention to the upcoming TGEs and airdrops from several prominent projects this year: Kamino, Parcl, Marginfi, DFlow, Backpack, MagicEden, Tensor, and more. These projects will contribute to the continuous development and popularity of the Solana ecosystem.
BGB:
During the market pullback, Bitget's platform token, BGB, showed remarkable resilience. In the past 24 hours, BGB rose by 3% despite a 6% drop in BTC. Additionally, Bitget recently launched three Launchpool promotions in a row for ZK, DOPE, and ENA. Staking BGB or USDT can earn corresponding token rewards, and both BGB and USDT can be redeemed instantly.

3.3 Google Search (global and regional)

Global focus:
(1) CORE:
CoreDAO launched CoreIgnition, integrating with the BTCfi ecosystem. Users can earn promotion credits and CORE tokens by bridging Bitcoin ecosystem assets to the Core chain. Influenced by this news, CORE's price increased by 309% over the past 7 days and 518% over the past 14 days. In the past six months, some projects transitioning to the BTC ecosystem, like AUCTION, have achieved significant success, while others have been short-lived. Traders should closely monitor whether these transitioning projects are continuously expanding resources and building products rather than merely rebranding.
(2) Farcaster:
Farcaster is a decentralized social network that enables developers to build innovative social networking applications. Users will always be able to freely move their social identities between apps, and developers will always be able to freely build new functionality on the network. On March 31, news broke that Farcaster's developer, Merkle Manufactory, is close to completing a funding round led by Paradigm, valuing the company at approximately $1 billion. Recently, the popularity of Degen Chain has brought Farcaster and SocialFi to the public's attention. It is worth closely monitoring the fundamental data and price movements within the SocialFi segment.
Regional focus:
(1) Southeast Asia shows significant interest in CORE's surge and Ethena's TGE:
CORE and Ethena (ENA) have trended in Indonesia, the Philippines, Singapore, and Thailand.
(2) Indian users are increasingly interested in Crypto Tax term:
Profits from cryptocurrencies are taxable in India, and the government's official stance on cryptocurrencies and other virtual digital assets was clarified in the 2022 budget.
(3) Europe and the USA focus on leading projects within the Solana ecosystem and the RWA segment:
Top Solana ecosystem projects like JTO, JUP, and RAY have been trending in most countries in Europe and the USA. Goldfinch (GFI) and Ondo Finance (ONDO) have appeared in hot searches in countries like the USA and Belgium.

4. Potential Airdrop Opportunities

Morph (L2, Optimistic zkEVM scaling solution)
Morph is an EVM-compatible Layer 2 solution that combines Optimistic and Zk-rollup technologies, offering a user-friendly option for developers looking to build financial, gaming, social media, and entertainment applications on the blockchain.
On March 20, Morph announced the completion of a $19 million seed funding round led by Dragonfly Capital, with participation from Pantera Capital, Foresight Ventures, The Spartan Group, MEXC Ventures, and Bitget.
How to participate: (1) The first round of Morph's promotion on Galxe has ended. Those who are interested can follow Morph's account on Galxe (https://galxe.com/Morph) to stay updated on future promotions; (2) Testnet interaction: Add Morph Testnet to a non-custodial wallet via Chainlist, join the Morph Discord channel to receive test tokens, and use Morph's testnet bridge to transfer these tokens to the Morph Testnet. Keep an eye out for upcoming test interactions.
Aries Markets (Aptos-based lending platform with APT subsidies)
Aries Markets offers one-stop lending and margin trading services on the Aptos blockchain. The project's TVL stands at $167 million, ranking third in the Aptos ecosystem behind Thala and Amnis Finance.
With APT subsidies, Aries offers an APY of over 18% for USDC deposits, while the interest rate for borrowing USDC is less than 3%. The interest rates for borrowing USDT and WETH are also very favorable, making it an excellent choice for financial management. Future airdrops from the project could provide additional profits.
How to participate: (1) Use the LayerZero Aptos cross-chain bridge to transfer assets to the Aptos network; (2) Deposit USDC, USDT, WETH, and other assets in the Lending section of Aries Markets. (3) Exercise caution with revolving loans, low-interest borrowing, and leverage trading to manage risks effectively.
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