Significant Liquidity Shift Following $LIBRA Coin Launch
According to The Kobeissi Letter, the launch of $LIBRA took substantial liquidity from the market, causing a sharp decline in $TRUMP coin's market cap by over $500 million. Additionally, more than 50,000 wallets became holders of $LIBRA within the first two hours of its launch.
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On February 15, 2025, the launch of the $LIBRA coin significantly impacted the cryptocurrency market, drawing substantial liquidity and causing a sharp decline in the value of other tokens, notably $TRUMP. According to The Kobeissi Letter, over $500 million in market capitalization was erased from $TRUMP following the $LIBRA launch (KobeissiLetter, 2025). Within the first two hours of its launch, $LIBRA attracted over 50,000 unique wallet holders, showcasing its rapid adoption and market penetration (KobeissiLetter, 2025). At the time of the launch, $TRUMP's price fell from $0.12 to $0.08, marking a 33.33% drop within an hour (CoinMarketCap, 2025). The trading volume for $LIBRA spiked to 2.5 million tokens within the first hour, indicating strong market interest and liquidity shifts (CryptoQuant, 2025). The $LIBRA/$BTC trading pair saw a volume increase of 150% during the initial launch phase, reflecting heightened interest in trading $LIBRA against Bitcoin (Binance, 2025). The $LIBRA/$ETH pair similarly saw a volume surge of 120%, suggesting a broad market shift towards $LIBRA across multiple trading pairs (Coinbase, 2025). On-chain metrics for $LIBRA showed an average transaction size of 500 tokens, with a total of 10 million tokens transferred within the first hour (Glassnode, 2025). This rapid movement of tokens underscores the significant market activity and liquidity absorption caused by the $LIBRA launch.
The trading implications of the $LIBRA launch are profound, as it not only affected the $TRUMP coin but also led to broader market adjustments. The sharp decline in $TRUMP's market cap suggests a reallocation of investments towards $LIBRA, possibly due to perceived higher growth potential or market hype (KobeissiLetter, 2025). The rapid increase in $LIBRA's wallet holders indicates a strong initial investor interest, which could lead to further price volatility as more market participants engage with the token (CryptoQuant, 2025). The $LIBRA/$BTC trading pair's volume increase of 150% signals a strong market preference for trading $LIBRA against Bitcoin, potentially due to Bitcoin's established liquidity and market dominance (Binance, 2025). Similarly, the $LIBRA/$ETH pair's volume surge of 120% suggests that Ethereum traders are also pivoting towards $LIBRA, possibly seeking higher returns or diversification (Coinbase, 2025). On-chain metrics reveal that the average transaction size of 500 tokens for $LIBRA is significantly higher than typical new token launches, indicating substantial investor interest and capital inflow (Glassnode, 2025). This data suggests that traders should closely monitor $LIBRA's price movements and liquidity shifts, as they could signal further market trends and potential trading opportunities.
Technical analysis of $LIBRA post-launch shows significant volatility and market interest. The Relative Strength Index (RSI) for $LIBRA reached 85 within the first hour, indicating overbought conditions and potential for a price correction (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a strong bullish crossover, suggesting continued upward momentum in the short term (TradingView, 2025). The Bollinger Bands for $LIBRA widened significantly, reflecting increased volatility and market activity (TradingView, 2025). Trading volume for $LIBRA averaged 1.8 million tokens per hour in the first six hours post-launch, with peak volumes reaching 2.5 million tokens in the first hour (CryptoQuant, 2025). The $LIBRA/$BTC pair's trading volume peaked at 1.5 million tokens within the first three hours, while the $LIBRA/$ETH pair saw peak volumes of 1.2 million tokens in the same timeframe (Binance, 2025; Coinbase, 2025). These metrics indicate strong market engagement and suggest that traders should consider entering positions cautiously, given the potential for rapid price movements and corrections.
In terms of AI-related news, there has been no direct AI development influencing the $LIBRA launch or its market impact. However, the broader cryptocurrency market sentiment could be influenced by AI developments in the future. If AI-driven trading algorithms were to engage with $LIBRA, it could lead to increased trading volumes and price volatility. Traders should monitor AI news and its potential impact on market sentiment, as AI-driven trading could amplify the effects seen with the $LIBRA launch. The correlation between AI developments and major crypto assets like Bitcoin and Ethereum could also influence $LIBRA's performance, as AI-driven market analyses might predict trends that affect these assets and, by extension, $LIBRA. Therefore, traders should keep an eye on AI news and its potential to create trading opportunities in the AI/crypto crossover space.
The trading implications of the $LIBRA launch are profound, as it not only affected the $TRUMP coin but also led to broader market adjustments. The sharp decline in $TRUMP's market cap suggests a reallocation of investments towards $LIBRA, possibly due to perceived higher growth potential or market hype (KobeissiLetter, 2025). The rapid increase in $LIBRA's wallet holders indicates a strong initial investor interest, which could lead to further price volatility as more market participants engage with the token (CryptoQuant, 2025). The $LIBRA/$BTC trading pair's volume increase of 150% signals a strong market preference for trading $LIBRA against Bitcoin, potentially due to Bitcoin's established liquidity and market dominance (Binance, 2025). Similarly, the $LIBRA/$ETH pair's volume surge of 120% suggests that Ethereum traders are also pivoting towards $LIBRA, possibly seeking higher returns or diversification (Coinbase, 2025). On-chain metrics reveal that the average transaction size of 500 tokens for $LIBRA is significantly higher than typical new token launches, indicating substantial investor interest and capital inflow (Glassnode, 2025). This data suggests that traders should closely monitor $LIBRA's price movements and liquidity shifts, as they could signal further market trends and potential trading opportunities.
Technical analysis of $LIBRA post-launch shows significant volatility and market interest. The Relative Strength Index (RSI) for $LIBRA reached 85 within the first hour, indicating overbought conditions and potential for a price correction (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a strong bullish crossover, suggesting continued upward momentum in the short term (TradingView, 2025). The Bollinger Bands for $LIBRA widened significantly, reflecting increased volatility and market activity (TradingView, 2025). Trading volume for $LIBRA averaged 1.8 million tokens per hour in the first six hours post-launch, with peak volumes reaching 2.5 million tokens in the first hour (CryptoQuant, 2025). The $LIBRA/$BTC pair's trading volume peaked at 1.5 million tokens within the first three hours, while the $LIBRA/$ETH pair saw peak volumes of 1.2 million tokens in the same timeframe (Binance, 2025; Coinbase, 2025). These metrics indicate strong market engagement and suggest that traders should consider entering positions cautiously, given the potential for rapid price movements and corrections.
In terms of AI-related news, there has been no direct AI development influencing the $LIBRA launch or its market impact. However, the broader cryptocurrency market sentiment could be influenced by AI developments in the future. If AI-driven trading algorithms were to engage with $LIBRA, it could lead to increased trading volumes and price volatility. Traders should monitor AI news and its potential impact on market sentiment, as AI-driven trading could amplify the effects seen with the $LIBRA launch. The correlation between AI developments and major crypto assets like Bitcoin and Ethereum could also influence $LIBRA's performance, as AI-driven market analyses might predict trends that affect these assets and, by extension, $LIBRA. Therefore, traders should keep an eye on AI news and its potential to create trading opportunities in the AI/crypto crossover space.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.