Bitcoin News Update: The Crypto Landscape Shifts as Influencers Depart and Major Institutions Enter

Bitget-RWA2025/11/05 10:38

By:Bitget-RWA

- BSC meme coin KOLs are liquidating holdings amid volatility, triggering market consolidation. - GIGGLE and "Binance Life" saw short-term rebounds, but most tokens face ongoing sell-offs. - Analysts link exits to macroeconomic pressures and institutional entry reshaping crypto ownership. - Bitcoin/ETH ETF outflows ($327M) and rising sell-pressure age (100 days) highlight broader risk-off sentiment.

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The BSC on-chain

meme

market is experiencing a notable transformation as influential figures in the crypto community (KOLs) are offloading their stakes in recently trending meme coins, a movement referred to as "Cutting the Fat." Based on

GMGN monitoring data

, the majority of crypto KOLs—including well-known names such as Wang Xiao'er and 0xSUN—have scaled back their investments in leading meme tokens since October. This reflects a more cautious stance in the market amid ongoing volatility. As a result, only a select few high-cap meme coins, like "Life on Binance," "Hakimi," and "GIGGLE," are still held by some KOLs, while most other tokens have been liquidated.

This wave of selling has occurred alongside a partial recovery in BSC meme coins. On November 4,

GIGGLE led a resurgence

, with "Binance Life" jumping nearly 20% within an hour and "Hakimi" climbing 14%. These rallies indicate that certain tokens continue to attract investor interest, even as the overall market remains uncertain. Nevertheless, the uptick has not reversed the broader trend of KOLs moving away from lower-value projects, highlighting a shift toward consolidation and risk reduction.

Analysts point to larger economic factors and shifts in crypto ownership as reasons for the sell-off. James Check, a

Bitcoin

on-chain analyst, observed that long-term holders are selling their assets more rapidly, with the average age of coins sold rising to 100 days compared to 30 days in earlier cycles. This trend is similar to what’s happening in the BSC meme sector, where KOLs are favoring liquidity over speculative investments.

The meme coin landscape on BSC demonstrates both strength and vulnerability. While tokens like GIGGLE have shown brief periods of growth, the market remains extremely unpredictable. BlockBeats warns that related token prices can change dramatically in a short time, advising investors to remain vigilant. At the same time, the wider crypto market is facing challenges, with

Bitcoin and Ethereum ETFs

seeing outflows amounting to $327 million as of November 3. These developments point to a broader risk-averse mood that could further impact meme coin prices.

KOLs reducing their meme coin holdings also signals changing tactics within the crypto industry. As more institutional and traditional finance participants enter the space, early adopters are cashing out to take advantage of liquidity or to adjust their portfolios. According to Check, this marks a "changing of the guard," with early risk-takers making way for more cautious, well-funded investors.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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1. Technology stocks fell sharply as investor interest shifted toward energy and selected defensive assets. From October 10 to 16, the Nasdaq 100 declined 5.49% and the S&P 500 fell 1.95%, while the Dow gained 0.67% and WTI crude rose 10.41%. BTC, ETH, and SOL declined 1.27%, 2.65%, and 4.44%, respectively. This week's technology earnings will be an important test of whether revenue growth, margins, and cash flow can justify current valuations. Better-than-expected results could help stabilize markets in the near term. 2. Crypto continues to see pockets of strong activity, but a broad-based altcoin season has yet to materialize. CoinMarketCap's (CMC) Altcoin Season Index stood at 54 as of the October 18 UTC daily observation, below the altcoin-season threshold of 75, while BTC dominance rose to 60.08%. Our proxy leverage ratio fluctuated between 4.00 and 4.07 during the week, showing no sustained increase and suggesting limited appetite for additional leverage. Meanwhile, as major exchanges expand access to traditional financial assets, the recent sell-off in AI-related equities could attract short-term speculative capital away from crypto. Such capital rotation could make it more difficult for a new altcoin season to take hold. 3. Papertrade's loss-to-mine model has generated significant interest across the crypto community. The protocol combines high-leverage derivatives trading with zero slippage and a mechanism that rewards trading losses with PAPER tokens. Across the eight complete UTC days from October 10 to 17, cumulative reported revenue reached approximately $56.08 million, including $51.90 million distributed to token holders. With growing participation from key opinion leaders (KOLs), Papertrade has reportedly ranked among the top three platforms by profitability in the broader market recently. Assets to watch: BTC, ETH, SOL, ARB, OP, SKHYNIX, SKHY, META, TSLA, LRCX, and SPCX. Key research priorities this week: Cash flow performance in technology earnings; the relative discount and holding costs of the two SK Hynix contracts; and U.S. initial jobless claims and PMI data. Weekly market data cover the period through October 16, while research information was verified through October 18. Observation periods are specified separately for each chart.

Bitget•2026/10/19 06:51