Howdy traders, it’s Matt here.
It’s been a big week for crypto.
I’m sure you heard a bit about Sam Bankman-Fried and the FTX downfall.
We’re going to go over it in today’s letter.
And surprisingly, even though the FTX collapse is a fairly bearish sign for the industry, there were still opportunities to profit as a result.
We’re going to cover those as well.
Don’t sleep on this market.
We don’t even have bullish price action from the industry leaders and there are still spikers to catch.
It’s mind blowing.
Let’s get into it …
FTX
Sam Bankman-Fried has been described as the crypto ‘darling’.
He was the CEO of crypto exchange FTX and made frequent appearances on capitol hill to discuss possible crypto regulation.
His company boasted $1 billion free for new projects and acquisitions a month ago. But last week the tables suddenly turned.
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There was a liquidity issue.
The exchange was unable to satisfy customer withdrawal orders. An issue that’s plagued firms in the past.
For a day, it looked as though Changpeng Zhao, Binance CEO, would swoop in to save the day. But that was short-lived …
As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of https://t.co/FQ3MIG381f.
— Binance (@binance) November 9, 2022
On Friday, FTX filed for bankruptcy. Sam stepped down as CEO and issued an apology on Twitter…
1) I'm sorry. That's the biggest thing.
I fucked up, and should have done better.
— SBF (@SBF_FTX) November 10, 2022
The bigger they are, the harder they fall.
FTX was considered the fourth biggest crypto exchange in the world.
The industry continues to consolidate.
Ripple Effect
When there’s a big catalyst like this in the industry we’re likely to see a ripple effect. And it didn’t disappoint …
Bitcoin (BTC) and Ether (ETH) both face planted.
Here’s a BTC chart …
BTC chart 3-day candles Source: BitcoinWisdom.io
Here’s an ETH chart …
ETH chart 3-day candles Source: BitcoinWisdom.io
But it’s not all doom and gloom.
There were few profit opportunities as a result.
Chief among them … since FTX is a major exchange, all remaining exchanges stand to benefit from less competition.
For example, Coinbase Global Inc. (NASDAQ: COIN) had a great day of bullish price action. Check out this chart …
COIN chart 1-minute candles Source: StocksToTrade.com
And it’s not the only spiker.
The top crypto play on my watchlist right now is Marinade (MNDE).
It operates on the Solana blockchain.
Holders of the native Solana token (SOL) can stake their crypto using Marinade. Thereby providing liquidity and earning mSOL tokens in exchange.
It spiked +220% in two hours on November 9, 2022. And it’s still consolidating. Here’s a chart …
MNDE chart 15-minute candles Source: BitcoinWisdom.io
Watch for the price to spike back up toward highs from a few days ago.
Top Play for November
So far this month, there have been multiple opportunities for crypto profits.
But the #1 token I’m watching has yet to take off.
If you don’t have time to check the scans every day, this is a great option.
It’s not a question of ‘if’ it spikes … but ‘when’.
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