Daily News | BTC Fell Below $91,500 This Morning, LLM Exceeded $100 Million in Market Cap Within Two Days

Crypto Daily Digest: AI Agent concept tokens fell across the board, BTC, ETH and SOL faced the loss of key support levels

The U.S. stock market was closed yesterday, and there was no inflow or outflow of funds in the BTC ETF and ETH ETF.

Analyst: Market concerns about possible DOJ sell-off of Bitcoin are overblown

Earlier, DB News reported that the U.S. Department of Justice had been approved to liquidate 69,370 BTC (worth about $6.5 billion) seized in the Silk Road case. Coindesk analyst James Van Straten said that market concerns about the sell-off may be exaggerated, and listed the following reasons:

The reports of 69,370 Bitcoins being liquidated seem like a lot, and if they were actually sold, they would likely be sold in an orderly fashion to get the best price. At the same time, the market has long known that this could happen, so the possibility may have been priced in.

Secondly, the market has absorbed more than 1 million Bitcoins since September. This can be seen by the decrease in the holdings of long-term holders, which Glassnode defines as investors who have held Bitcoin for more than 155 days. As a group, they now hold 13.1 million Bitcoins. However, since September, the price has risen from about $60,000 to more than $100,000.

The final reason is that we have historical data on another government selling a similar amount of Bitcoin. The German government sold about 50,000 Bitcoins between mid-June and mid-July 2023. The total value of these Bitcoins was about $3.5 billion at the time, and they are now worth about half that. However, the market actually reacted to the sell-off in advance, and the price bottomed out around July 7 at about $55,000, and the German government still held at least 25,000 Bitcoins. This shows that the number of Bitcoins does not dominate the market.

Viewpoint: BTC, ETH and SOL faced the loss of key support levels, and the market begins to panic

Trader Eugene Ng Ah Sio posted on social media: “This is when most people start to panic for the following reasons:

-BTC, ETH, and SOL are retesting their range lows from December 5th, with the market beginning to accept that these support levels may not hold.

-The next support level for BTC is at $85,000, which is very far away.

-People’s psychological dependence on the “January Bull Market” began to weaken, and most people realized that the assets they had not sold had gone through a complete cycle of ups and downs, and began to suffer losses. As a result, they found that they not only completely gave up their profits, but also found that they were no longer so fond of the currencies they held when the market fell sharply. “

AI mainstream tokens continue to fall, FARTCOIN fell more than 21% in 24 hours

According to Gate.io market information, AI mainstream tokens continued to fall, including:

-AI16Z fell 18.05% in 24 hours, and its current market cap is $1.57 billion;

-ELIZA fell 13.8% in 24 hours, and its current market cap is $58 million;

-FARTCOIN fell 21.09% in 24 hours, and its current market cap is $870 million;

-ARC fell 17.9% in 24 hours, and its current market cap is $290 million;

-ZEREBRO fell 15.5% in 24 hours, and its current market cap is $310 million.

Market Trends: LLM’s market cap increased by $100 million in two days, and the market may continue to decline in the short term

Market Hotspots

The concept tokens of AI Agent on the chain, such as LLM and PIPPIN, have soared. LLM’s market cap has reached $100 million in two days. The image of LLM is a fat version of ai16z. Twitter KOL him called for LLM to compete with Fartcoin, and he has repeatedly exchanged insults with ai16z founder Shaw on Twitter. The price he bought was about $7 million. PIPPIN is a framework platform, and as an infrastructure, it is more favored by large funds.

The new coin SONIC rose slightly by 10%. SONIC is a virtual machine-compatible Layer2 built by Solana chain specifically for games. SONIC’s current market cap is $300 million, ranking 258th in the entire market.

Mainstream Coins

This morning, BTC once fell below $91,500 and is currently in a narrow range of fluctuations after the decline. The short-term market may continue to decline;

ETH fell below the $3,200 mark. Since this round of market, ETH has been mainly following the market trend;

Altcoins generally plummeted, and there were no new hot spots in the market. AI is still the most mainstream narrative. The popular AI Agent concept tokens are a good buying range after a deep correction.

Macro News: U.S. stocks were closed yesterday, no more data and opinions updated