Crypto Market

BTC and ETH Market Insight

BTC is just about 10% away from reaching $100k, and the internet search traffic for BTC has just reached its highest level since 2021. The market entered the Extreme Greed territory based on Bitcoin Fear/Greed Index. The greed can persist for a longer period. The index remained above 80 from November 2020 to March 2021 with only minor pullbacks. Only 21% of alts have outperformed $BTC over the last 90 days. Memecoin market cap rose from $57B to $123B, now accounting for 4% of the total crypto market. Solana memecoins hit $20B total market cap. Solana, Base, and Sui lead in inflows, while Polygon experiences significant outflows, likely due to Polymarket capital movements.

Options Market

BTC continued to show its post-election strength, keeping printing new ATHs all the way to 93.4k at peak. Despite some pullback to 87k during the week, BTC quickly regained the ground and is just a few percent away from a new ATH as of writing. Realised volatility surged by 15-20 points since the election whereas implied volatility edged about  5 points higher - the negative volatility carry widened further. Volatility is expected to stay elevated as BTC explores new ATHs. ETH, on the other hand, reversed its gain against BTC from last week and seems to be trending lower vs BTC for now. Skew remained bullish for both BTC and ETH. 

Altcoins and Blockchain News

• A Trump ally proposes selling part of the Federal Reserve's gold to purchase 1 million Bitcoins.

   

• Matrixport: Inflows of stablecoins reach a record high, indicating strong demand for cryptocurrencies.

   

• Polish presidential candidate: If elected, will adopt a strategic Bitcoin reserve.

   

• Last Week, Coinbase soared to the top position among free financial apps on the App Store.

   

• Message to hacker from DEXX: Return the funds within 24 hours and receive a bug bounty; otherwise, law enforcement action will be taken with the police.

   

• Sui TVL surpasses $1.4 billion, setting a new weekly on-chain transaction volume record.

   

• VanEck executive: The likelihood of a Solana ETF being listed before the end of next year is very high.

   

• Matrixport: Short-term overbuying and strong cash inflows push Bitcoin higher; three important dates in December are worth noting.

Macro

The major benchmarks returned part of the priced-in gains from the presidential election: the DJIA lost 1.2%, the S&P 500 -2.1% and the Nasdaq -3.1%. Chinese equities declined with potential worries on the new U.S. Tariffs following the U.S. election result: the Shanghai Composite Index lost 3.52%, the CSI 300 lost 3.29% and the Hang Seng index -6.28%.