Bitcoin's breakout, Altcoin rally, and DeFi milestones

Hola folks!

Hopes of pro-crypto regulatory changes in the US following the presidential election results appear to have cheered the global crypto market. BTC, the world’s largest crypto by market cap, led the charge, scaling an all-time high of $81,800. 

However, the bull run isn’t limited to Bitcoin. Altcoins such as Ethereum and Solana and meme coins such as Doge, WIF, and Neiro have all gained significantly in the past week. With the broad base bull run, the Bitcoin fear and greed index is now showing a reading of extreme greed, indicating positive market sentiment. 

In today’s newsletter, we bring you a roundup of all the major political and economic developments that impacted the crypto market in the past week. Read on to learn more about what boosted the crypto market and how the events of the past week might impact crypto prices in the days to come. Today’s edition also carries a video highlighting CoinSwitch’s Proof of Reserves, showcasing the platform’s commitment to crypto investors’ safety.

CoinSwitch, in line with its mission of maintaining full transparency, has released Proof of Reserves for the second time this year to showcase strength and reassure its users. The move comes in the wake of cyber attack faced by crypto exchange WazirX which also led to a small portion of CoinSwitch funds getting stuck on the crypto exchange. 

To make sure that its user funds are safe, CoinSwitch used its treasury to ensure that they maintain a 1:1 ratio between user holdings and CoinSwitch holdings. All the details of the Proof of Reserves has been disclosed in the following blog post and video below describes it in simple words.

Bitcoin continues to defy expectations, soaring past $81,000 over the weekend and delivering almost $82,000 as the week kicks off. This remarkable rally has put Bitcoin back on the radar, as traders anticipate further upside despite fears of a sharp pullback. 

The price surge comes amid renewed mainstream interest, but it’s clear that the influx of retail investors seen in previous bull markets is still missing—for now. Impressively, Bitcoin is finally catching up to gold’s performance after months of underwhelming returns, yet there’s still a gap to fill before November 2024 matches historical gains in past halving years. 

Meanwhile, macroeconomic factors continue to play a crucial role, as traders brace for the upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) data releases. These inflation reports, coupled with a fresh round of jobless claims data, could dictate the next big move for risk assets, with markets anticipating another 0.25% rate cut from the Fed in December.

However, it wasn’t all good news for the crypto space. The DeFi sector saw another setback as DeltaPrime, a liquidity protocol, was exploited for $4.8 million in digital assets, adding to the tally of crypto hacks in 2024, which might surpass last year’s figures. 

Additionally, the legal drama around the crypto space deepened with Alameda Research filing a lawsuit against Waves founder Aleksandr Ivanov, seeking to recover $90 million in assets. 

As if to underline the mixed fortunes of the market, the total value locked (TVL) in DeFi hit a new milestone of over $100 billion, driven by heavyweights like Lido and Aave, showing that while risks persist, the appetite for decentralized finance solutions remains strong. As we move forward, market participants will be watching closely for any policy shifts from the Fed and signs of retail interest, which could either sustain this bull run or bring a swift correction.

Altcoins had their moment in the spotlight as well, with Dogecoin (DOGE) and Shiba Inu (SHIB) leading gains among major cryptocurrencies. Dogecoin jumped 88% over the past month, recently flipping XRP and USDC to become the sixth-largest token by market cap, largely driven by Elon Musk’s renewed endorsements. 

Despite these altcoin rallies, other major tokens like Ether (ETH), BNB, and Cardano (ADA) experienced mixed performances, suggesting that investors are selectively rotating into assets with strong momentum.

• BTC $82,018 ⏫ 19.21%

• ETH $3,190 ⏫ 29.41%

• ADA $0.5914  ⏫ 77.67%

• DOGE $0.2887 ⏫ 84.39% 

(All data here is as of 4.05 p.m., 11 November 2024)

Before we conclude, here’s a quick look at some important news from around the crypto world.

• Solana’s native cryptocurrency (SOL) hit a new milestone on Nov. 10 as bitcoin’s (BTC) breakout to new record prices accelerated the broad-based crypto rally following Donald Trump’s decisive election victory and the Federal Reserve’s additional rate cut. Read more here. 

• Cardano’s ADA token surged 33% in the past 24 hours, outperforming Bitcoin and other majors, as founder Charles Hoskinson revealed plans to help shape US crypto policy under the Trump administration—-boosting speculative bets on the token. Read more here. 

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

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