Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) are trading sideways on Wednesday. On Tuesday, they dropped by more than 20% after the company posted its earnings. That’s why PayPal is our Stock of the Day.Two historical things took place yesterday, and they may end up leading to a buying opportunity for some traders.The first thing to consider is that yesterday's volume was the highest ever in a single day for PayPal. 141 million shares traded. On a typical day, the volume is about 20 million.This could sign ...

Market Sentiment - The market is potentially entering a capitulation phase, indicated by a capitulation period/candle, particularly in Altcoins [1] - Current market sentiment suggests a lack of belief in Altcoins [1] - A potential 20% drop deep wick in Altcoins could quickly change the market sentiment [1] Investment Strategy - The advice is to remain patient and avoid leverage during this volatile period [1]

Group 1 - A significant shift in the fortunes of short-term Bitcoin holders has occurred, with their aggregate profit/loss changing from a +25% gain in mid-May 2025 to a -25% loss by December, indicating a wave of capitulation and a transfer of wealth from weak to strong hands [1][2] - Analysts suggest that this capitulation phase is often associated with the formation of a market bottom, presenting an opportunity for accumulation once a large portion of investors has capitulated [2] - Bitcoin's price faced strong resistance at $93,000 but is currently trading at $93,330 after a 7.4% gain in the last 24 hours, indicating a potential recovery phase [3] Group 2 - Improved investor sentiment is reflected in prediction markets, with users assigning an 80% chance that Bitcoin will reach $100,000 rather than $69,000 [4] - A break above $93,321 could trigger the liquidation of approximately $570 million in short positions, supporting the theory of a short squeeze [4] - Short sellers are likely to buy back their positions to limit losses when prices move against them, creating additional buying pressure that could accelerate the recovery [5] Group 3 - The 7-day 25-delta options skew has improved from -10% to -4%, indicating a reduction in demand for put options, which suggests a potential rebound in the market [6] - A rise in options skew metrics signals declining demand for downside protection, further supporting the notion of an impending market recovery [6]

Market Sentiment - Retail interest in previously dominant topics throughout 2025 is declining [1] - Cryptocurrency discourse is decreasing, suggesting a potential market bottom is approaching [1] Cryptocurrency Market - Historical crypto trends are available for review [1]

Market Analysis - The cryptocurrency market, including Altcoins and Bitcoin, experiences a final capitulation day, signaling a potential start of a new bull run [1] - The market needs to sweep the lows and recover [1]

Market Sentiment Analysis - Extreme Fear often signals deep capitulation zones in the market [1] - The index hit 8 during the March 2020 (COVID crash), Bitcoin bottomed near $4 thousand and started a multi-month recovery [1] - The index fell to 6-10 in June 2022 (post-Luna meltdown), Bitcoin formed a local bottom around $17 thousand before an upward grind [1] - The index was 10-15 during the Nov-Dec 2022 (FTX collapse), Bitcoin stabilized and later initiated a 2023 recovery rally [1]

Market Dynamics - Ethereum whale borrowed $270 million on Aave to accumulate 444,800 ETH at an average price of $3,398 [1] - ETFs experienced outflows of $1.4 billion in the last 3 weeks [1] - One entity is borrowing 9 figures to buy more ETH, while others are rushing to exit [1] Investment Strategy - Smart money utilizes leverage to accumulate assets during capitulation phases, rather than during periods of euphoria [1] Financial Performance - The Ethereum whale is currently down $133 million on their ETH investment [1] - The whale withdrew another 22,720 ETH from Binance today [1]

Market Sentiment - Crypto traders are showing increased fear, with $XRP exhibiting twice as many bearish comments compared to bullish ones [1] - Negative sentiment often signals market capitulation before rallies, according to Santiment [1]

Cardano Network Metrics - Network Realized Profit/Loss (NPL) measures profit or loss of coins changing addresses daily [1] - Positive NPL indicates coins moving at a profit, suggesting potential profit-taking [1] - Negative NPL indicates coins moving at a loss, suggesting capitulation or reallocation [1] - Profit/Loss Transaction Ratio compares volume of coins moved in profit versus loss [2] - Ratio < 1 indicates loss-making transactions dominate [2] Market Interpretation - Cardano network's on-chain transactions are currently loss-making, a sign of capitulation [2] - Weak hands are being "shaken out," while stronger participants may re-enter at a discount [2] - Simultaneous negative movement in both metrics often signals an emotional flush-out phase [2] - Such conditions historically mark zones where fear and opportunity rebalance, but not a guaranteed reversal [2]

Market Trends - Vanguard capitulation news and major headlines from the week are highlighted [1]