Bitcoin Bears Roar, Ye’s YZY Goes Boom, Then Bust: A Crypto Rollercoaster

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What to know:

  • Bitcoin decided to take a nap as long-term sentiment turned a little “meh” for the first time since mid-2023.
  • Other tokens like DOGE, XRP, and SOL also joined the pity party, while ether decided to be the responsible one.
  • Analysts, with their rose-tinted glasses on, are still excited about BTC’s future thanks to Trump’s crypto-loving ways. 🤷‍♀️

Bitcoin had a mini bounce on Wednesday, reaching $144,700, but it was as short-lived as my last attempt at making banana bread. The long-term market sentiment took a sharp left turn, with bears creeping in for the first time since June 2023. DOGE, XRP, and SOL followed like sheep, but ether kept it cool, like that one person at a party who somehow manages to stay sober.

Still, the CoinDesk 20 Index was up 0.7%, so it wasn’t all bad, right? At least the CoinDesk 80 Index managed a 0.4% gain too. Small wins, people, small wins.

And while all this chaos happened, analysts still managed to stay optimistic about BTC’s future. How? Well, Donald Trump loves crypto, apparently. Yeah, we’re all still trying to wrap our heads around that one. But analysts believe this approval for including crypto in 401(k)s will eventually do some good, just not tomorrow.

“Trump’s crypto love will eventually shift flows from speculative hype to more long-term, pension-style investments,” said Jag Kooner from Bitfinex. Sure, Jag, sure. 🙄

Derivatives Positioning

  • The BTC and ETH futures open interest stalled, like that time I tried to open a new chapter in my life and ended up binge-watching Netflix instead. The levels are above 700K BTC and 14.2 million ETH, which is fine, but not exactly exciting.
  • Open interest in LINK futures is through the roof, hitting almost $27 on Wednesday. Other tokens are a bit less impressive. Looks like LINK is the golden child this week.
  • HYPE is leading the charge with funding rates over 25%. Because why not bet on a token that screams “attention-seeking,” right?
  • On CME, BTC futures bounced back briefly, but that was short-lived, like every crypto rally ever. Meanwhile, ether futures are on the up-and-up, making BTC look a bit outdated.
  • On Deribit, demand for BTC puts is skyrocketing. The market clearly doesn’t trust BTC’s chances. Ether options? They’re still living their best life with lots of calls. 🙃
  • The OTC network Paradigm is also seeing some action. BTC puts are getting popular, but ether? It’s getting a little mixed, just like my emotions after a failed dinner party.
  • Volmex says bitcoin and ether’s volatility is chill right now. No big spikes expected from Jackson Hole. Because what else could go wrong?

Token Talk

  • YZY Money, the latest memecoin birthed from Ye (formerly Kanye), had a meteoric rise of 6,800% before plummeting back under $1. Just your typical celebrity token drama. 🙄
  • Ye’s cryptic X post had everyone wondering if his account was hacked, but no, turns out he just really wanted to add another thing to his chaotic portfolio.
  • The token’s structure looks like something a toddler would come up with: 70% supply for Ye, 10% for liquidity, and 20% for sale. Ye initially wanted 80% but settled for 70%. Because who needs fairness when you’re a billionaire, right?
  • Wallets were already prepped with insider info-one wallet spent $450,611 and turned it into $1.5 million. Nice work if you can get it. 😏
  • Liquidity was set up so only YZY could be sold. Developers and whales had full control of the market. Hype went through the roof, pushing the market cap toward $3 billion. But hey, no big deal. Just another speculative bubble.
  • Of course, retail buyers ate it. One wallet lost $500,000 in just two hours. Another tragic tale of the little guy getting caught up in celebrity chaos. 💔
  • Wormhole threw its hat into the ring, offering a higher bid than LayerZero for Stargate. Drama, drama, drama. A governance delay is in the works, and everyone’s debating whose offer is actually worth it.
  • Stargate’s appeal? It’s massive. $4 billion processed in July, $345 million locked. Oh, and a treasury full of stablecoins and ether. Yeah, that sounds solid.
  • LayerZero’s proposal is, apparently, undervaluing Stargate. Criticism is flying around. It’s basically a game of crypto Monopoly, except no one’s having fun.
  • Wormhole claims it’s offering a better deal. Because of course they do. “We’ll unlock unrealized value.” Oh, how I love that phrase.

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2025-08-21 15:57