Crypto Just Lost $1.3 Trillion. Is This the End of the 'Wall Street' Cycle?

Actionable Market Insights

Why this report matters

While most investors are still focused on price charts, the real story is unfolding through ETF positioning, failed crypto IPOs, and a subtle shift in Wall Street incentives. Capital that once rushed into “institutional adoption” is now facing an uncomfortable unwind. December is approaching, historically a dangerous month when losses, psychology, and tax mechanics collide. We’ve been tracking a set of signals that rarely align outside of major regime shifts. If these signals are doing what we think they’re doing, the next few weeks could matter far more than most traders currently realize.

Main argument

Anyone still doubting that this is a bear market should revisit our video (here). We hope it helped protect capital. As we repeatedly emphasized back in October, if you don’t sell high, you can’t buy low. That’s precisely why we continued to warn and prepared subscribers for a bear market while Bitcoin was still trading in the $110,000–$112,000 range.

Ethereum has now reached the $2,700–$2,800 zone that we outlined on October 31 and reiterated in our November 4 report, after declining roughly 25%. While this level is starting to look attractive on a valuation basis, it is still too early to buy. We continue to see signs of forced unwinding by ETF holders, exactly as we had anticipated, and, importantly, there is still no evidence of a sustainable rebound.

The crypto market has now lost $1.3 trillion in value or 30%. Bitmine is down $4 billion on its Ethereum position, which was built in just four months and peaked in October at $13 billion. But interestingly, when Bitmine had acquired $5.5 billion worth of Ethereum by mid-August, the market started trading against Bitmine, which at that point was the only real buyer of Ethereum.

Ethereum (LHS) - $2,800 was our potential target (see here)