Capitulation Signals Strengthen as Fed Shows Openness to Easing and SOL Gains a Potential Supply-Side Tailwind

Discussed in today’s video:

• Record IBIT and Hyperliquid Volumes: A combination of (1) BTC’s sharp overnight drop and constructive rebound, (2) all-time-high IBIT volumes, and (3) record BTC-denominated volume on Hyperliquid collectively points to sellers being absorbed and a potential capitulatory backdrop forming.
• Policy Easing Signals: Fed President John Williams signaled openness to further rate cuts, and both Fed Funds Futures and Polymarket repriced December cut odds to >50%, helping ease recent concerns that the Fed might be making a policy error.
• Equity Market Sensitivities: Equities stabilized, but further deterioration, perhaps stemming from the AI complex, could pressure crypto on an absolute basis even if BTC outperforms on a relative basis.
• Solana Tokenomics Update: A new Solana proposal accelerates disinflation to a 1.5% terminal rate in three years, cuts roughly $3B in emissions over six years, addresses concerns around validator churn and network fragility, and could be a catalyst for SOL going forward.

Tickers in this video: BTC -1.82% SOL