Bitcoin News Today: Crypto's Changing Guard: KOLs Exit as Institutions Move In

The BSC on-chain meme market is undergoing a significant shift as key opinion leaders (KOLs) liquidate holdings in recently popular meme coins, a trend dubbed "Cutting the Fat." According to GMGN monitoring data, most crypto KOLs—including prominent figures like Wang Xiao'er and 0xSUN—have reduced their positions in popular meme tokens since October, reflecting broader market caution amid recent volatility. This trend has left only a handful of high-market-value meme coins, such as "Life on Binance," "Hakimi," and "GIGGLE," retained by a subset of KOLs, while the majority of tokens have been sold off.

The liquidation wave coincides with a partial rebound in BSC-based meme coins. On November 4, GIGGLE led a resurgence, while "Binance Life" surged nearly 20% in a single hour, and "Hakimi" rose 14%. These gains suggest lingering investor interest in select tokens, even as the broader market grapples with uncertainty. The rebound, however, has not reversed the overall trend of KOLs exiting lower-value projects, signaling a shift toward consolidation and risk mitigation.

Market analysts attribute the liquidation to broader macroeconomic pressures and structural changes in crypto ownership. James Check, a Bitcoin on-chain analyst, noted that older holders are offloading assets at an accelerated rate, with Bitcoin's sell-side pressure intensifying as the average age of sold coins rises to 100 days from 30 days in previous cycles. This pattern mirrors the BSC meme market, where KOLs are prioritizing liquidity over speculative bets.

The BSC ecosystem's meme coin dynamics highlight both resilience and fragility. While tokens like GIGGLE have shown short-term strength, the market remains highly volatile. BlockBeats cautions that prices of related tokens can fluctuate rapidly, urging investors to approach with caution. Meanwhile, the broader crypto landscape continues to face headwinds, with Bitcoin and Ethereum ETFs experiencing outflows totaling $327 million as of November 3. These trends underscore a broader risk-off sentiment that may further pressure meme coin valuations.

The liquidation of meme coin holdings by KOLs also reflects evolving strategies in the crypto space. As institutional investors and traditional finance players increasingly enter the market, early adopters are exiting positions to capitalize on liquidity events or rebalance portfolios. This transition, as Check described, represents a "changing of the guard" from early risk-takers to more conservative, deep-pocketed participants.

Despite the short-term turbulence, some analysts see long-term potential for BSC-based projects. Mutuum Finance (MUTM), for instance, has attracted over 17,600 participants in its presale, with whale activity signaling institutional confidence, as noted in a BeInCrypto report. However, such projects remain distinct from the speculative meme coin market, which is increasingly viewed as a high-risk, low-duration asset class.