January 28, 2025
Weather the Altcoin Volatility with These Crypto Tools
Dear Subscriber,
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| By Bruce Ng |
The Official Trump (TRUMP, Not Yet Rated) memecoin launched to much fanfare on Jan. 17, just three days before the returning U.S. president’s inauguration.
Within two days, Jan. 19, it hit an all-time high of $73.43.
At the same time, OTHERS tanked.
OTHERS refers to the Crypto Total Market Cap Excluding Top 10 altcoins index.
So, it’s what the crypto market looks like when you remove heavyweights like Bitcoin (BTC, “A”), Ethereum (ETH, “A-”) and other high-market-cap alts.
Over those first two days of TRUMP’s trading, some $50 billion in value got wiped out among the OTHERS.
When I saw this chart, I wondered whether the TRUMP launch was pumped up by outflows from the OTHERS …
Or whether it was fueled by a tidal wave of new money flowing into the new currency from outside the cryptoverse.
I’ll tell you my conclusion and why that matters.
But first, I’ll give you my research and let you decide for yourself.
4 Facts About TRUMP vs. OTHERS
First, when OTHERS hit its lowest point at the local low (above, sometime on Jan. 20, according to the Y axis on the chart), TRUMP was valued at $14 billion.
Second, keep in mind that OTHERS also includes the TRUMP memecoin itself. So, while $14 billion got added to TRUMP, $50 billion got removed from OTHERS, resulting in a net loss.
Third, Moonshot — the app that allowed direct purchases of TRUMP using credit cards — processed $400 million worth of trading volume in the first 12 hours. This may mean more volume was processed in the first two days. Our guess is maybe $1 billion.
Fourth, stablecoin inflows measure money injected from outside the crypto world. From Jan. 17 to today, a mere total of $8 billion was added to all stablecoins.
OTHERS Fights Back
Now, what is certain during the Jan. 17-19 period is that $1 billion was added to TRUMP. And this drove up its market cap by $14 billion.
Remember: Money inflows don’t correspond 1-to-1 to market cap increases. In addition, stablecoin inflows amounted to $8 billion but this isn’t much compared to the loss suffered by OTHERS.
But as I write, the OTHERS has regained some of its losses. It is now consolidating around $345 billion in market cap.
This is a good sign.
TRUMP’s launch rattled the markets as liquidity already in the market made its way to the shiny new memecoin. But now, things have started to settle.
Now the key question is, will TRUMP money flow into other altcoins?
Since hitting its all-time high on Jan. 19, TRUMP has dropped some $10 billion in market cap. This probably means $700 million has left TRUMP.
Correspondingly, OTHERS has increased by $15 billion. Though, we do not know for sure how much of that $700 million has entered OTHERS or exited the crypto market entirely.
So what does this all mean in the end?
To put it simply, TRUMP did not structurally change the crypto market from the perspective of money flows.
In the long run, TRUMP is just another memecoin. And it is unlikely to alter how OTHERS will trade going forward.
Liquidity will cycle through the crypto market as it always does — first to big crypto blue-chips and headline-hungry projects, then mid-caps and finally small-cap cryptos.
But there is one thing TRUMP did impact. And that is public opinion.
The launch of a memecoin by a U.S. president is great optics for the crypto market. It legitimizes and advertises the industry to a wider public.
And if memecoins dominate the mainstream headlines this year, we are in for a wild ride.
As I write, OTHERS is rebounding and consolidating.
That’s good. It means these altcoins will be ready to run once liquidity eventually returns.
When that happens, promising projects in top sectors will likely take off.
So you’ll want the inside scoop on which sectors to target before that happens.
Luckily, you don’t have to wait for a talking head to tell you. You can identify leading narratives and trends on your own … and with some help from the free tools we have on our Weiss Ratings website!
Take Control of Your Crypto Portfolio
First, you should be familiar with these two free online resources that can help you track which narratives are currently leading the pack.
Second, don’t be afraid to use social media to your benefit. A lot of the crypto community congregates online. And it’s in these spaces where you mine for market sentiment.
In short, you can get insight into various projects from multiple investment perspectives.
If you know how to refine your search, that is.
Don’t worry, our team has got you covered.
My colleague and tech expert Jurica Dujmovic broke down what to include in your sentiment analysis last week. And I covered how to use this nifty AI platform to aggregate social media posts and trends in one convenient place.
Third, be sure to check out our Weiss Crypto ratings. These help you see at a glance what we think of these crypto projects. You can read how our ratings work here.
You can even use our website to set up ratings and price change alerts for projects you are interested in.
Just click on a crypto to go to its data page. That’s where you’ll find the My Lists and My Alert buttons at the top, right under the rating and real-time price.
Lists help you keep all the projects you’re interested in that we rate in one place.
Alerts let you know the moment we’ve updated our rating or the price has crossed a level you want to target.
I hope you take the time to play around with these tools. Because at the end of the day, your own research is what will make you confident and comfortable in your crypto journey.
No matter how you invest.
Best,
Dr. Bruce Ng
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