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🔴 Covid Crash 2.0! Money Printing Next?

🔴 Covid Crash 2.0! Money Printing Next?

February 03, 2025

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GM, and happy crashout day to everyone.

Hope you’re holding up—this one’s brutal. Maybe this is divine punishment for us being collectively bullish on ETH/BTC for a whole 24 hours last week.

Oh well, just the largest liquidation since the Covid crash, reaching over $2b worth (some estimates say it’s actually $10b), with around $200m happening just on Aave (impressive performance there).

Is it over? First off—if you survived this, hats off. We’ve been preaching the gospel of no leverage for a while now, so hopefully, some of you took it to heart.

Is it over? Well, first of all, if you survived this, well done. We often preached the gospel of “no leverage” here, so hopefully, some of you learned.

The silver lining to this is the possibility of upcoming quantitative easing, which might be needed to clean up all this mess. If this happens, it means Trump’s trade war is the same event as Covid lockdowns, forcing the Fed to roll out QE to avoid a hard recession.

I recommend reading this piece explaining the thesis.

Moreover, just as the TradFi market opened, we received news about Trump planning to hold a conference about the future of digital assets in the USA with Crypto Czar David Sacks, plus an announcement that tariffs for Mexico would be delayed for at least a month.

Is the worst over? It might very well be. Let’s see how the week develops from here.

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HYPE/USDT.P 1D Hyperliquid

As we enter the week with the smell of napalm in the air, the HYPE chart stands tall as one of the only consistently green BTC pairs (not pictured; check it out here) - up 11% on the day as of now. Tariffs seem to have been deferred for a month, which has lit up the green dildo recovery candles in the past 30 minutes.

Massive TWAP buy pressure was present on Hypurrscan long before that news broke, though. Imminent EVM deployment and gigantic fee revenue, a large part of which is redeployed to buy back HYPE, have kept the daily closes above that 0.618 retracement level and are looking to challenge the 27.30 / 0.382 retracement level next.

Come by the Lucky Luke Discord channel for comments, to roast my picks or to pump your own bags. All banter is welcome any time!

Smart-money movements of the day on Ethereum.

Source: ChainEdge

Smart-money movements of the day on Solana.

Source: ChainEdge

The AI sector is still pretty beat up. Now could be a good time to buy, but that has yet to be confirmed by volume and PA registering beyond ‘anemic’ on the Lucky Luke cursory Chart Inspection Index (™).

Not to labor the Hyperliquid shills, but exceptions today are $FLY (DeFAI co-pilot) & $LIQD (pump.fun meets agent launchpad), which we featured last week and which are up 26% and 27%, respectively, on the day (hit those links for charts).

HYPE has refused to be rekt by Tariff Man’s weekend assault, and that strength is filtering down to the top AI plays within the eco.

New content to study.

What’s next for AI agents? By 0xJeff
Top 10 must-read content for the AI sector by 0xJeff
All you need to know about DeSPIN (Decentralized Spatial Intelligence Network)
Weekly AI Edge #32 by Teng Yan

New updates & projects.

Aesop (Agent computers)

The important bits.

Core DAO (BTCFi) - Tune in to Core Dao discussion tomorrow on X
Tannsi (DeFi) - Jedi explains why Tannsi is the network to launch AI agents
Ramen Finance (Berachain) - Big news coming up tomorrow
Maia DAO (DeFi) - Announced planned Uniswap V4 integration
Pendle (DeFi) - Why does Pendle have the best PMF of this cycle explained
ZkSync (L2) - Switzerland’s largest bank now works with ZkSync
Uniswap (DEX) - Releases V4

Even more important bits.

Thailand SEC is planning to launch a distributed ledger technology-based trading platform for securities
President Trump-backed World Liberty Financial offers to buy a project's tokens in exchange for the project buying an equivalent amount of WLFI
The Bitcoin Standard featured on French TV
Grayscale files for Dogecoin DOGE ETF with the NYSE
Las Vegas Sphere refutes deal with Dogwifhat
Elon Musk’s father aims to raise $150M to $200M with a memecoin project called ‘Musk It’