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Bitcoin (BTC) and the crypto market registered a sharp decline as speculation cooled after a week of significant gains. BTC has registered an increase of over 30% since the US election, thanks to President-elect Donald Trump’s pro-crypto stance. After surging to a new all-time high of $93,434, BTC fell below $90,000 and is currently down over 3%, trading around $87,200. Ethereum has also registered a substantial drop, down over 6%, as it struggles to stay above $3,000.
Several cryptocurrencies also registered a substantial drop, including Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), Toncoin (TON), Chainlink (LINK), Polkadot (DOT), Uniswap (UNI), Dogwifhat (WIF), Render (RNDR) and others. The crypto market cap, which hit a record $3.2 trillion, is down 3.16% and currently sits at $2.88 trillion. Speaking about the pullback, ChangeNOW CMO Pauline Shangett stated,
“Bitcoin's meteoric rise to new highs reflects the optimism around pro-crypto policies and regulatory clarity anticipated under the new administration. However, the recent pullback shows that the market remains sensitive to profit-taking and broader economic factors.”
Crypto Industry Pushes For Changes
The crypto industry is pushing for several ambitious policies to promote the adoption of digital assets as it anticipates a crypto-friendly administration under Donald Trump. Crypto companies were already anticipating a lighter touch with the new administration. Trump’s decisive victory and a projected Republican sweep of Congress could pave the way for a significant overhaul of crypto policy. Trump had promised to be a pro-crypto president, and experts believe he has a strong mandate to deliver. The industry has several items on its agenda, including executive orders on crypto firms’ access to banking services and crypto-friendly nominations in several key positions, including the new Securities and Exchange Commission Chair. Mike Belshe, CEO of BitGo, stated,
“We've had an administration that's been very negative, and so, we're looking forward to unlocking that gridlock. I think the voters of America said very clearly that they want to see that.”
While some of the industry’s demands can be met quickly, others, such as creating a regulatory framework and crypto-related legislation, could take considerably longer. Trump had also promised to create a crypto advisory council, although it is unclear who would serve on the committee. Kava Calvert, head of US policy at Coinbase, stated,
‘Everybody in Washington is asking and thinking about who is going to lead these agencies. It's important I think for companies like Coinbase, but also all the smaller startups... to have a point of view.”
Markets Cool As Investors Wait And Watch
Bitcoin (BTC) briefly slipped below $87,000 after Federal Reserve Chair Jerome Powell said there was no need to rush interest rate cuts, taking some sheen out of BTC’s recent rally. Looking at the derivatives sector, K33 Research said the premium for CME-listed Bitcoin futures over the spot market has registered a noticeable decline. US-based investors use these contracts to take positions on the original cryptocurrency.
“Markets seem to be cooling down. The narrowing of the futures premium might have been a subtle hint of moderating risk profiles.”
BTC has surged over 30% since November 5, driven by Trump’s victory and pro-crypto stance. The asset is viewed as one of a suite of so-called Trump trades, although speculators are wondering how much impetus the rally has left. Trump promised to create a friendly regulatory framework for crypto and make the US a hub for the industry. However, doubts remain about the timeline and feasibility of some of his promises. Spot Bitcoin ETFs also registered a surge following the election, with investors pouring $4.7 billion into them. Spot Bitcoin ETFs, including funds issued by BlackRock and Fidelity, hold total assets worth $94 billion. Jim Davies, Chief Executive Officer at Crypto Valley Exchange, stated,
“It’s all pure speculative trading right now. Expect lots of volatility and a lack of clear signals while we wait for policy announcements in the US.”
Crypto Market Capitalization Surges Past $3 Trillion
The global crypto market cap surged past $3 trillion following Donald Trump’s victory in the US elections, as investors bet on friendlier regulations, ushering in a significant jump in crypto adoption. Data from CoinGecko showed the crypto market cap almost reached $3.2 trillion, putting it above levels last seen in 2021 when a pandemic-era stimulus boosted speculative investments.
“Generally the way this market goes is bitcoin will break out and then the rest of the altcoins will follow. So there is that gradual rotation of capital...and then we can expect the total market cap to increase.”
However, while cryptocurrencies are surging, some parts of the crypto ecosystem have failed to register similar growth. Average sales for NFTs have remained stagnant at $2,000 since May. DBS Bank, which also operates a digital exchange, stated that while trading had registered a substantial increase, investors avoided more obscure parts of the market. David Hui, Chief Commercial Officer of the DBS Digital Exchange, stated,
“We've not seen our clients shift their assets towards more exotic platforms or decentralized exchanges.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) slipped below $90,000 late on Thursday as investor sentiment cooled following a stunning rally after the conclusion of the US elections. The world’s largest cryptocurrency set a new all-time high of $93,434 before declining to $90,000. BTC continued to drop from this level, briefly falling below $87,000 before climbing back to its current level of $88,000. BTC is currently down almost 2% and trading around the $88,100 mark.
“Before the election, investors were already betting on options that the price of bitcoin would exceed $80k or even $100k, and the value of these bets has risen.”
The industry expects Trump to make good on his promise to establish a Bitcoin reserve, which market watchers see as a real possibility, with industry experts believing it legitimizes the asset class.
“Something like that from the White House could go a long way towards fixing the problem.”
BTC registered a decline in bullish sentiment over the weekend following its November 5 rally, registering a marginal increase on Friday and Saturday to go above $76,000 and settle at $76,619. Bullish sentiment returned on Sunday as BTC rose almost 5% to move past the crucial $80,000 mark and settle at $80,152. The current week began with buyers retaining control as BTC registered an increase of 9.43% to settle at $87,706. Sellers attempted to drive BTC below $80,000 on Tuesday as it fell to an intraday low of $82,709. However, it recovered from this level to go back above $85,000 and settle at $87,210, registering a drop of 0.57%.
Source: TradingView
Buyers returned to the market on Wednesday as BTC surged past $90,000 and set a new all-time high before declining and settling at $90,150. BTC fell back in the red on Thursday, dropping by 3.13%, slipping below $90,000 and settling at $87,324. The current session sees BTC up by almost 1% and trading at $88,141 as buyers look to push the price back above $90,000. While overall market sentiment remains bullish, analysts expect a brief pullback in the short term because the RSI is well into the overbought zone, indicating the asset is overvalued. We could see a drop until the RSI is back in neutral or close to the neutral zone.
If the market remains bullish, BTC could drop to $85,000 or as low as $80,000. Despite facing volatility and a decline over the past few sessions, BTC is expected to cross $100,000 by the end of the year.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has registered a substantial decline since reaching a high of $3,443, as it struggles to stay above $3,000 in the face of growing selling pressure. Like other cryptocurrencies, ETH registered a considerable jump following the election, surging past the 20 and 50-day SMAs. By Friday, it had pushed above $2,850 and settled at $2,963, just below the 200-day SMA. ETH pushed above the 200-day SMA and $3,000 on Saturday, rising 5.59% and settling at $3,128. Despite facing volatility on Sunday, buyers retained control to push ETH up by almost 2% to $3,185.
Source: TradingView
Bullish sentiment intensified on Monday as buyers pushed ETH up almost 6% to $3,373. ETH rose to an intraday high of $3,443 on Tuesday before buyers lost momentum, thanks to growing selling pressure. As a result, ETH turned bearish, dropping almost 4% and settling at $3,246. Volatility increased substantially on Wednesday as buyers and sellers attempted to exert control. Ultimately, sellers gained the upper hand, and ETH fell back 1.66% to $3,192. Bearish sentiment intensified on Thursday as ETH dropped over 4% to $3,059, with sellers attempting to drive the price below $3,000. The current session sees ETH down marginally as sellers look to push ETH below $3,000 and buyers struggle to keep the price above $3,000.
If ETH slips below $3,000, it could drop to $2,850. On the other hand, if buyers regain control, ETH could push back towards $3,400. A break above this level could see the resumption of ETH’s rally, and the price could reach $3,500.
Solana (SOL) Price Analysis
Solana (SOL)’s rally has stalled as it struggles to push above $225, with sellers looking to drive the price below $200. SOL’s rally began on November 6, surging past the 20-day SMA and settling at $186. Despite facing considerable resistance, SOL pushed above $200 over the weekend, registering a marginal increase on Saturday and rising over 5% on Sunday to cross $200 and settle at $210. Bullish sentiment intensified on Monday as SOL rose 5.76% to $222.
Source: TradingView
Buyers attempted to push higher but could not go above $225, thanks to considerable selling pressure at this level. As a result, buyers lost momentum, and SOL dropped 4.69% to $211 on Tuesday. SOL reported a significant jump in volatility on Wednesday as sellers attempted to drive the price below $200. However, SOL recovered after dropping to an intraday low of $201 to register an increase of 1.69% and settle at $215. Buyers attempted to push above the resistance on Thursday as SOL reached an intraday high of $223. However, buyers lost momentum and SOL fell back, dropping almost 3% and settling at $209. The current session sees SOL marginally down as sellers look to drive the price below $200.
Toncoin (TON) Price Analysis
Toncoin (TON) has registered a substantial decline this week, grappling with considerable selling pressure and volatility. TON was bullish over the weekend, rising almost 7% on Friday to push above the 20 and 50-day SMAs and settle at $5.25. Sunday saw a significant jump in volatility as TON dropped to an intraday low of $5, and rose to an intraday high of $5.57 before settling at $5.27 after a marginal increase. The current week began with bullish sentiment returning as DOT rose over 4% and settled at $5.49.
Source: TradingView
However, volatility returned on Tuesday as sellers attempted to drag TON below $5. As a result, TON dropped to an intraday low of $5.09 before recovering to settle at $5.48, ultimately registering only a marginal drop. Bullish sentiment intensified on Wednesday as TON dropped by 4.25% and settled at $5.25. Buyers attempted a recovery on Thursday as TON rose to an intraday high of $5.47. However, buyers lost momentum after reaching this level, allowing sellers to drive the price down by 0.85% to $5.20. The current session sees TON marginally down as sellers look to drive the price below the 50-day SMA and $5.
Aptos (APT) Price Analysis
Aptos (APT) made a strong recovery over the weekend after registering a drop of 1.04% on Friday. With buyers returning to the markets, APT registered an increase of 7.16% on Saturday to go above $10 and settle at $10.42. Bullish sentiment persisted on Sunday as APT reached a high of $11.51 before declining and settling at $10.90, an increase of 4.58%. APT surged almost 26% on Monday as bullish sentiment intensified considerably. As a result, APT surged past key levels and settled at $13.72.
Source: TradingView
However, bulls lost momentum on Tuesday, allowing sellers to assume control. As a result, APT fell almost 10% to a low of $11.49 before recovering and settling at $12.36. Sellers retained control on Wednesday, driving the price below $12 to $11.73, a drop of just over 5%. Buyers attempted a recovery on Thursday as APT reached an intraday high of $12.35. However, buyers lost momentum, and APT fell back, dropping over 4% and settling at $11.23. The current session sees APT up by 5.10% and trading at $11.81 as buyers look to push the price back above $12.
Render (RNDR) Price Analysis
Render (RNDR) registered a considerable decline on Wednesday and Thursday after registering a substantial jump at the beginning of the week. RNDR’s post-election rally stalled after it hit resistance at $5, leading to marginal declines on Thursday and Friday. Bullish sentiment returned over the weekend as RNDR registered an increase of almost 7% to go above $5 and settle at $5.30. RNDR went above the 50-day SMA on Sunday, reaching an intraday high of $5.96 before settling at $5.52, an increase of just above 6%.
Source: TradingView
The current week began with RNDR registering a huge jump of just over 23%, going above the 200-day SMA and settling at $6.91. Tuesday saw a significant increase in volatility as buyers attempted to push above $7 and sellers attempted to drag the price below the 200-day SMA. Ultimately, buyers seized the upper hand, and RNDR went past $7 to settle at $7.19, an increase of 4.07%. RNDR dropped to an intraday low of $6.34 on Wednesday as selling pressure intensified. However, it recovered from this level to go back above the moving average and settle at $6.98, a drop of almost 3%. Selling pressure intensified on Thursday as RNDR dropped below the 200-day SMA after falling 6.19% and settling at $6.55. The current session sees RNDR up by 3.61% as buyers look to move back above the 200-day SMA and reclaim $7.
Arbitrum (ARB) Price Analysis
Arbitrum was bullish following the US elections, surging past the 20-day SMA on Wednesday and settling at $0.549. ARB went above the 50-day SMA on Thursday and registered an increase of almost 2% on Friday to settle at $0.592. ARB remained bullish over the weekend, rising by 4.66% on Saturday to go above $0.60 and settle at $0.619. However, Sunday saw a substantial increase in volatility as ARB reached an intraday high of $0.656 and fell to an intraday low of $0.595 before recovering to settle at $0.629, an increase of 1.61%. Bullish sentiment intensified on Monday as ARB rose almost 7% to settle at $0.672.
Source: TradingView
However, buyers lost momentum on Tuesday as ARB registered a substantial drop of 6.07% and fell to $0.631. Selling pressure persisted on Wednesday as ARB dropped to an intraday low of $0.571 before recovering to settle at $0.613, a decline of almost 3%. ARB fell below $0.60 on Thursday after falling by 5.32% and settling at $0.580. However, the price has recovered during the current session, and ARB is up just over 2% as it looks to reclaim $0.60.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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