Are Altcoins Safe To Buy? (S&P Picks Chainink)
🎯 Summary
Podcast Episode Summary: Are Altcoins Safe To Buy? (S&P Picks Chainlink)
This 64-minute podcast episode provided a deep dive into the current state of the cryptocurrency market, focusing heavily on altcoin safety, technical analysis, and significant institutional developments, particularly involving Chainlink. The hosts addressed immediate market volatility following a recent sell-off and offered forward-looking perspectives on potential market catalysts.
1. Focus Area: The primary focus was Cryptocurrency Market Analysis and Investment Strategy, specifically addressing the safety and viability of buying altcoins amidst market downturns. Secondary topics included technical indicators (RSI, Wyckoff patterns), institutional adoption (Chainlink/S&P), and macroeconomic factors (Fed policy, potential government shutdown impact).
2. Key Technical Insights:
- Bitcoin Range & RSI Divergence: Bitcoin was observed bouncing strongly off the $110k level (implied range context), with analysis showing clear bearish divergence on the RSI at the top, and potential hidden bullish divergence suggesting a recovery within 24-72 hours.
- Chainlink W Formation: The LINK chart displayed a pattern highly similar to its 2020 run-up—a “W formation” followed by a downside wick that washed out longs, suggesting potential for a significant move upward.
- Altcoin Rotation & Strength: Solana was noted for outperforming peers during the recent drawdown, indicating potential strength ahead, possibly tied to upcoming ETF news. Strong performers during the dip included Tau (Origin Trail).
3. Market/Investment Angle:
- Altcoin Safety Question: The central theme was whether “alt season” is a myth or real, with the hosts suggesting that leverage has been flushed out, setting the stage for a more structured move upward once catalysts hit.
- Institutional Entry Strategy: The hosts posited that institutions might be deliberately accumulating positions during current pullbacks to secure better entries before a major rally.
- BNB as an Altcoin Catalyst: There was speculation that BNB, rather than Ethereum, might be the primary driver kicking off the next major altcoin season, with profits rotating down into the BNB ecosystem (e.g., ASTR, PancakeSwap).
4. Notable Companies/People:
- Chainlink (LINK): Highlighted as the “title story” due to its partnership with S&P Global to provide Stablecoin Stability Assessments (SSAs) on the Base network, powered by DataLink.
- S&P Global: The entity behind the S&P 500, tapping Chainlink for institutional-grade risk assessment data for stablecoins.
- Crypto.com & PayPal: Mentioned in context of previous content releases by the channel.
- Scott Melker: Referenced for pointing out the bearish divergence on Bitcoin’s RSI.
- CryptoFace: Mentioned as a guest expected on afternoon streams to discuss market drivers.
5. Regulatory/Policy Discussion:
- The Clarity Act establishing a regulatory framework for stablecoins was cited as a factor increasing demand for real-time risk profiles like Chainlink’s SSAs.
- The potential impact of the US government shutdown ending was viewed as a bullish catalyst for altcoins, especially pending ETF approvals.
- There was discussion of China urging the US to correct 100% tariffs, linking this to a potential “Terra playbook” step involving anticipated trade deal teasers from the Trump administration.
6. Future Implications: The conversation suggests a shift away from strict four-year crypto cycles toward a more systematic, S&P 500-like trajectory characterized by structured pullbacks and steady accumulation phases, driven by increasing institutional integration. Chainlink’s role in providing essential risk infrastructure for regulated finance is seen as a major long-term driver.
7. Target Audience: This episode is most valuable for Active Cryptocurrency Traders and Investors who utilize technical analysis, monitor institutional on-ramps, and are making strategic decisions about portfolio allocation between Bitcoin, Ethereum, and specific high-potential altcoins (like LINK and BNB).
🏢 Companies Mentioned
đź’¬ Key Insights
"If you guys haven't read The Bitcoin Standard yet, I would recommend it because it's almost always the beginning of the end of powerhouse civilizations is when they start to be basing the currency. Once they get away from a sound money or a hard money supply, that's when everything starts to fall apart..."
"USA removed all silver bummer coins in '65, closed the gold window in '71, which removed backing of gold. After that, they unleashed debt up to almost $40 trillion. So, if you wonder why housing's unaffordable, everything seems more expensive, it's because your currency is being devalued a little each year."
"Bitcoin is the best way coming back to storing your wealth or storing your energy. That's what Bitcoin does best. It stores energy for the future, stores value, and builds up your energy supply that you can deploy into other things later."
"But you can't print energy, true. That's why Bitcoin is based on energy. You can always print more money. You can always issue fake fiat currency, and every government in history has done so. But it is impossible to fake energy."
"I do think it had somebody had prior knowledge. Definitely people had prior knowledge because it was a lot more going on than just the Trump tweet. And that's part of what I talked about yesterday is I don't know if he knew anything about Trump stuff, but they probably knew that Wintermute was going to pull all their liquidity."
"Bitcoin whale shorted the last crash. Remember, he made $192 million. He has now opened a short and then even boosted the bet slamming down $400 million that Bitcoin's going to tank."