🔥 Crypto Is Definitely in the White House!

Happy Monday dear subscribers! Today we’ll be talking about Trump’s New Treasury Secretary!

In today's bulletin, we are covering:

• Surfing the Market, with analysis about the Big Caps Index and the AI Index

• Don't miss the News about Trump’s Treasury Secretary and AI Agents

• Ai Agents are under the spotlight.

• A short article about What's happening with alt season?

  

Waking up to an ugly scenario this time. The Big Caps Index unable to hold the local horizontal support is losing traction there and diving down to the $890 range. Which will be another key test of endurance. Really important level:

Critical level for the AI Index here too. The current $86 support has been the key bounce point back in November and December. Key squeeze on the local downtrend resistance after 1 week of sharp decline, decision time:

Scott Bessent: A Pro-Crypto Nominee for Treasury Secretary Navigates Conflicts of Interest

Scott Bessent, billionaire hedge fund manager and Treasury Secretary nominee under President-elect Donald Trump, plans to divest assets worth over $700 million, including Bitcoin ETF holdings and other investments, to prevent conflicts of interest.

• Bessent disclosed significant assets, including $250,000–$500,000 in Bitcoin ETF holdings and a $50+ million margin loan with Goldman Sachs.

• To avoid conflicts of interest, he plans to divest these holdings if confirmed.

• As Treasury Secretary, he would face the challenges of managing federal debt, extending tax cuts, and eliminating taxes on social security benefits.

• Bessent supports policies favoring tax reform, bank lending, and energy production.

Known for his pro-crypto stance, Bessent is also an advocate for tax reform, deregulation, and a strong dollar policy.

AI Agent Tokens Face Sharp Decline Amid Market Volatility

The AI agent token market has experienced a significant downturn, with leading tokens seeing price drops between 40% and 55% in the past week. Meanwhile, Bitcoin remained stable at around $95,000.

• AI agent tokens like ai16z, Virtuals, and Swarms experienced sharp declines of 50% or more, reducing their combined market cap from $15 billion to $12.55 billion.

• Bitcoin’s stability contrasts with the volatility of AI agent tokens, maintaining its price near $95,000.

• The market correction reflects skepticism about the novelty and functionality of AI tokens, as many are memecoins with limited agentic capabilities.

• The hype surrounding AI agent tokens began after Truth Terminal, an AI integrated with a crypto wallet, inspired the creation of various frameworks and meme projects.

This highlights growing challenges for AI-themed tokens in distinguishing genuine projects from hyped memecoins.

AI AGENTS 

What are AI Agents? 

Crypto AI agents are autonomous software entities that utilize artificial intelligence and machine learning algorithms to make decisions and take actions in the cryptocurrency market. 

These agents have been gaining significant attention recently for their potential to transform various aspects of the crypto ecosystem, including investment analytics, community interaction, and gaming. 

The concept of crypto AI agents involves the use of advanced technologies to analyze vast amounts of data, identify patterns, and make predictions about market trends, allowing for more informed investment decisions and strategic actions. 

The Technology behind AI Agents 

Crypto AI agents are built using machine learning algorithms and natural language processing techniques, enabling them to analyze data from various sources, including social media, news outlets, and market trends. 

They can interpret price movements, technical patterns, and other market indicators to provide actionable insights and recommendations. 

AI Agents applications 

There are a wide range of applications meant for Ai Agents, including: 

• Investment analytics: Providing real-time market intelligence, risk assessment reports, and strategic recommendations to investors. 

• Community interaction: Engaging with users on social media platforms, creating content, and analyzing community sentiment. 

• Gaming: Offering tailored game recommendations, real-time guidance, and strategic advice to enhance the gaming experience. 

• Decentralized finance (DeFi): Enabling autonomous decision-making and continuous service in DeFi applications, such as lending, borrowing, and trading. 

Notable AI Agent projects 

Several crypto projects have gained significant attention, including ai16z, Virtuals, and AIXBT, which are leveraging AI to enhance the blockchain ecosystem and provide innovative solutions for investors, gamers, and content creators. 

The development and deployment of crypto AI agents are rapidly evolving, with new projects and applications emerging regularly. As the technology continues to advance, it is likely to have a profound impact on the cryptocurrency market and beyond, enabling more efficient, autonomous, and data-driven decision-making processes. 

The year 2024 closed with significant growth for the AI Agent sector reaching a total market cap of $13.5 billion. Their ability to trade, create content, and even hire other AI agents using crypto, has made them a key trend in the cryptocurrency market. 

The crypto AI agent space has grown from nothing to billions in a short period, with Virtuals Protocol being one of the biggest names in the market, having launched over 11,000 agents and with over 140,000 people holding various AI agent tokens. 

Other AI agents like AIXBT and LUNA have gained popularity, with AIXBT watching what 400+ top crypto influencers are saying and doing, and sharing insights and market analysis in real-time, while LUNA has initiated the first AI-to-AI business transaction. 

AI Agent sector projections 

The market is expected to continue growing, with predictions for the total market cap of AI agents to reach $250 billion by the end of 2025, and with the potential for some AI agent cryptos to grow tenfold. 

The growth of AI agents is also driven by the increasing adoption of blockchain technology and the emergence of new use cases, such as decentralized finance (DeFi) and non-fungible tokens (NFTs). 

However, the market is never clear of risks, not all AI agents are likely to succeed and there are chances of a % of them ending up as scams, there is no doubt that this new trend has come with some opportunity.

What's happening with alt season?

Many investors are positioned in altcoins, but not only are these not rising with BTC's bull market, they are instead dropping at a bear market pace. What’s happening?

Reasons

While it might be too soon to declare that there hasn’t been an alt season this cycle, let’s explore why we haven’t seen one yet.

One major reason is the number of investors who lost money during the previous bear market and haven’t returned to the market. Many of them were retail investors who joined the hype when BTC and alts were at their ATH, only to get stuck holding through the bear market... at best.

Another factor is that those who stayed in the market have shifted to BTC instead of continuing to bet on alts, which are much more volatile and unpredictable. This is evident in BTC’s dominance, which hasn’t decreased, leaving no room for an alt season.

The emergence of BTC ETFs is also key. A significant amount of new capital has entered the crypto space but remains focused solely on BTC. The BTC ETF launch was undeniably a massive success, as it has far outperformed the first year of the Gold ETF.

Although there was also an ETH ETF, it hasn’t been as successful as BTC’s. ETH hasn’t even reclaimed its previous ATH, partially explaining why other alts haven’t returned to their prior cycle highs either.

A unique feature of this cycle is that the market rises sectorally but falls as a whole. In other words, when the market rises, sectors tied to new technologies, such as AI and DePIN, which weren’t present in previous cycles, lead the way. However, when the market turns red, everything declines uniformly, much like in the old days.

This shows that the market is maturing on the upside, which is positive as the best and most promising projects rise more—similar to the stock market. However, the market remains immature during risk-off periods, when sell-offs cause nearly everything to crash indiscriminately.

Will this time be different?

There’s a saying in the stock market: “This time it’s different.” It’s one of the most costly phrases for investors.

While we are seeing a change in the typical cycle where BTC rises first, followed by ETH, then big caps, and finally meme coins and shitcoins, it’s still too early to say this won’t happen again in 2025.

One key factor to consider is the flow of capital. Much of the capital has flowed into BTC, driving its price increase, while alts have not benefited from the same influx—explaining the lack of explosive upward movement in altcoin prices.

However, this scenario could change quickly if that capital flow starts shifting toward quality alts with strong projects, and later to riskier ones in pursuit of higher returns.

A key chart to watch is $TOTAL3, which represents the total crypto market cap excluding BTC and ETH. It had an initial leg up, bringing it to its ATH, but now it needs to break that level to unlock an alt season.

From a market psychology perspective, moments of skepticism and disbelief are ideal for accumulating tokens of promising projects at good prices. As we know, bull markets begin to take shape during periods of investor despair.

Alt season will happen, perhaps more selective and delayed than in the past. This isn’t a negative, as it signals the growing maturity and consolidation of the crypto world as a market that isn’t just here to disrupt but to stay.

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