Market update

Cointree Crypto Market Update - November 20th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$141,853 moving +5.45% at the time of writing. Meanwhile, Ethereum ends at AU$4,770 moving -3.90% week-on-week. On the Altcoin side, Solana gains +12.74%, Cardano +30.88%, and XRP finally picks up with +57.06%.

🗞 What’s happening in the news?

💎 Ethereum's Underperformance: What's Happening?

Ethereum, once hailed as the silver to Bitcoin's gold, has only risen by 36% this year. In stark contrast, Bitcoin (BTC) has surged by an impressive 109%. At the current market rate of AU$4,880, ETH is still significantly below its all-time high of AU$7,600 reached in 2021. Meanwhile, BTC is trading at lifetime highs above AU$143,000

According to Amberdata's latest research, there's only a 10% chance of ETH topping its first-quarter high of approximately AU$6,300 by the end of December. Traders are more bullish on BTC, betting on it setting new highs above AU$162,800.

Greg Magadini, Director of Derivatives at Amberdata, noted,

ETH faces serious headwinds as the value proposition of 'sound money' has flipped to inflationary supply. Nearly all DeFi transactions are being executed on Layer 2s as opposed to Ethereum Layer 1 itself. I believe that’s drastically dragging prices down.

Last week's Ethereum community gathering saw influential researcher Justin Drake propose an ambitious overhaul of the blockchain, including reducing block times to four seconds from the current 12. While this could potentially revitalise ETH's fundamentals, any significant changes might take years to implement.

🇵🇱 Global Leaders Advocate for Strategic Bitcoin Reserves

In a significant development, Polish presidential candidate Sławomir Mentzen has vowed to create a Bitcoin reserve if he wins the 2025 election. Responding to a query from CEO Lech Wilczynski about establishing a strategic Bitcoin reserve, Mentzen affirmed,

Of course.

This move mirrors the promise made by US President-elect Donald Trump during his campaign to establish a "Strategic Bitcoin Stockpile." Earlier this year, Senator Cynthia Lummis introduced a bill aiming to acquire one million Bitcoin over five years to hedge against the national debt.

Countries like El Salvador and the Kingdom of Bhutan have already taken significant steps in this direction. El Salvador, under President Nayib Bukele, holds 5,748.8 Bitcoin, having legalised it as legal tender in 2021. Bhutan has been quietly mining Bitcoin for years, with holdings worth approximately AU$1.2 billion.

🍔 The New US Secretary of Commerce and Its Implications for Crypto

Wall Street billionaire and crypto advocate Howard Lutnick has been selected by Donald Trump to serve as the US Secretary of Commerce. Lutnick, currently the CEO of Cantor Fitzgerald, has been a significant proponent of cryptocurrency, especially Bitcoin.

Cantor Fitzgerald manages billions of dollars in assets for stable-coin giant Tether. Lutnick has publicly expressed confidence in Tether’s financial health multiple times. He's also a “big fan” of Bitcoin, stating that spot BTC ETFs are “a way for Americans to buy” Bitcoin.

As Commerce Secretary, Lutnick will oversee international trade, tariffs, and the US Patent and Trademark Office. While his influence over crypto policy may be less than that of a Treasury Secretary, his position could still positively impact the crypto industry.

📖 What we’ve been reading

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