- Chalk Chain
- Posts
- š° Crypto Crash: Powell's Painful Punchš„
š° Crypto Crash: Powell's Painful Punchš„
PLUS: Memecoins are dead? AI Agents are here.


GM Legends! Welcome to the second edition of Chalk Chain Weeklyāthe newsletter that turns crypto complexity into clarity, one chalk stroke at a time.
First, thank you for the warm feedback on our first edition last week!

šNow grab a coffee ā, itās been a rough week so letās recap.
š° What Is Crypto: Blood in the Water š©ø
š¤ AI Agents have arrived.. Are memecoins dead?
š TradingWright: Altcoins Accumulation + Holidays
š Crypto Market: TLDR of the FED Meeting


What Is Crypto
Blood in the Water 𩸠- Mattās Wisdom
The markets are bleeding right now⦠but donāt panicājust hold the line, avoid leverage, and DCA when possible. This is likely a small pullback, not the end of the run, and weāre poised to go much higher when the Trump Pump kicks in.
Remember, crypto isnāt always on easy modeāafter rapid gains, pullbacks are natural, and this is just part of the cycle.
Stay focused, zoom out, and avoid the trap of thinking āthis time is different.ā When the market gets euphoric in a few months and everyoneās calling for outrageous Bitcoin prices, stay level-headed, take profits on the way up, and keep stacking smartly.
The outlook remains super bullishādonāt get shaken out. Letās ride this wave and make the next year incredibly profitable! š
This weekās trades:
šØBuy Alerts
$DXY - Holding incredibly well given the market decline. Itās hit key support levels and looks primed to break out if we see a Christmas surge š
$SOL - Bought a large bag of Sol Spot here. Adding to the Safety L1 part of my portfolio.
$BASEDAI - DCA Buy into my highest conviction AI play on a large retracement.
$MYRIA - DCA to my position - Becker is bullish, Gaming rotation will happen at some stage when the market returns - this price is a VERY good entry.
$KASPA - You guys know the thesis here - Price Looks Great!
ā ļøSell Alerts
NOTHING.
šWatchlist
Your Highest Conviction Plays: As the market dips, if you have funds on the sidelines, look to increase your highest conviction plays. There is a fire sale and now is the time to be greedy when others are fearful.

For real-time alpha and trade alerts from Matt at What Is Crypto
š² Follow on X: WhatIsCrypto
š YouTube: WhatIsCrypto
šØļø Join our Discord Community

The New Kid on the Block: AI Agents š¤
What the hell is an AI Agent?
AI agents in crypto are autonomous software programs powered by artificial intelligence that interact with blockchain ecosystems to perform tasks, make decisions, and optimize outcomes without continuous human intervention. These agents leverage AI and blockchain technologies to bring efficiency, intelligence, and automation to various aspects of cryptocurrency and decentralized finance (DeFi).
Basically- AI agents are like super-smart robots that live in the digital world and help manage your cryptocurrency automatically. They can make decisions, like trading coins or finding the best deals, by analyzing tons of data really fast, so you donāt have to.
Now with that understanding of AI Agents. People are excited⦠very excited. Why?
(AI Agents) are memecoins that can talk back to you. Itās going to be MASSIVE.
While meme coins have dominated the spotlight, now AI Agents are making waves.
The market cap of memecoins is approximately $140 Billion, while AI Agents current market cap is $4 Billion. Plenty of room to grow š
There is also a massive shift in mindshare from memes to AI in the crypto markets.

AI and Memecoins make up almost 50% of crypto mindshare. Source: Kaito AI
Combining this massive room for growth, the influx of attention, and the timing with the current bull market, things are looking very bullish for AI Agents.
But with so many options, itās hard to know which ones are worth your investment. Thatās why weāre putting together an AI Agent Pro Report which will include the top AI Agents to watch into 2025. Subscribe so you donāt miss out!

TradingWright
Better Altcoin Entries & Holiday Break āļø
My focus right now is on securing solid average entries on altcoins for 2025.
With the holiday season approaching, Iāve set bids and alerts to stay covered during my two-week breakāit's important to step back, recharge, and take some time off.
Remember to stay patient, hold onto your conviction, and get ready to hit the ground running and crush it together next year! š
š Market Update
"Most significant opportunities currently lie within altcoins; traders should focus on their positioning."
This weekās trades:
šØBuy Alerts
$DXY - Strong meme potential with a solid narrative and engaged CTO. Low market cap at just $1M. Clear accumulation range near all-time lows.
$FWOG - 63% down from ATH. Approaching a key HTF S/R level. Declining selling momentum.
$LTC - We have the opportunity to compound on this retest of the 3-year accumulation range. I've placed bids all the way down to $85.

DXY Chart: https://www.tradingview.com/x/eF13Abh1/
ā ļøSell Alerts
NOTHING.
Stay Up-to-Date with TradingWright
š² Follow on X: TradingWright
š YouTube: TradingWright
šØļø Join our Discord Community

Crypto Market Recap: Bitcoin dips below $100,000 after Fed Chair Powellās commentsš
TLDR
A Strong U.S. economy = Strong U.S. dollar (relative to the rest of the world) = Stubborn Inflation + Trump administration's economic policy/posturing possibly conflates the inflation problem = FED proceeds with caution.
Rate Cut Decision
As anticipated, the Fed delivered a 25bps rate cut. However, the real story lies in the updated Summary of Economic Projections (SEP).
The market had been pricing in two interest rate cuts for 2025, while the Fedās September SEP projected four. In this newly released SEP, the Fed now anticipates only two cuts for 2025āa surprise, as we expected them to signal three. Still, fewer cuts suggest positive economic growth, which is a silver lining.
Currently, the market isnāt pricing any rate cuts for January 2025, with all eyes on Powellās remarks for further guidance.
Post-Powell Speech
Powellās comments have unsettled the market, with expectations now shifting to just one or two additional cuts in 2025. The bar for further cuts seems to have been set low, likely reflecting the Fedās caution against potential inflationary policies under the incoming Trump administration.
While the price action is tough to watch, this doesnāt fundamentally alter the big picture. On-chain metrics remain far from overheated, and Trumpās pro-crypto regulatory stance could usher in a more favourable environment.

Chairman Powell
Our Position
Weāre not worriedāitās more of a short-term market issue, with short-term drawdowns, but our long-term thesis remains unchanged.
The Fed is likely to continue cutting rates, and liquidity should improve in the new year, driven by the U.S., with an even bigger boost expected from China.
Take Away
Stay focused, zoom out, and avoid the trap of panic. The future looks brightāstay the course and donāt get shaken out.
Letās ride this momentum and make the coming year a profitable one! šš

Year-to-Date Crypto Market Cap
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MEMES OF THE WEEK š


STILL RELEVANT THIS WEEK. IT STAYS UNTIL IT CHANGES.


DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.