Last week, the global financial markets saw the first setbacks and a temporary end to ‘Trumpmania’. Digital assets, on the other hand, saw another solid to very positive week, but not all assets were able to underpin this constant upswing. This means that the coming week could either see a ‘recovery’ in the equity markets and thus, due to the correlation of the markets, further rises in digital assets, or the levels could serve as a resistance zone and be followed by a setback. This remains to be seen and definitely gives the week a lot of potential for volatility.
Thought of the week
Digital Asset News
On 16 November 2024, Chainlink presented a major innovation: the Chainlink Runtime Environment (CRE). This platform aims to revolutionise the interaction between blockchain networks and traditional financial systems by improving efficiency, security and scalability.
CRE is a robust framework that enables seamless interactions between blockchain networks and traditional financial systems. It acts as a bridge that connects smart contracts with external data sources and executes complex operations with precision. CRE supports the deployment and management of smart contracts on various platforms and provides developers with a unified environment for building applications. Security is of paramount importance to financial institutions. CRE utilises the inherent security features of blockchain to make data interactions and transactions tamper-proof and transparent. This strengthens trust and integrity in financial operations. CRE is designed to support high-performance operations, allowing financial institutions to scale their systems without compromising performance. This ensures that systems can grow efficiently with the increasing demand for blockchain-based solutions.
Despite its current record run, the Bitcoin price has not yet reached its all-time high compared to the important S&P 500 share index, gold and other financial products – but crypto experts believe this is only a matter of time. In a post on X on 15 November, Caleb Franzen, founder of the analysis platform Cubic Analytics, predicted that these records will also soon be broken. Although the Bitcoin price recently climbed as high as USD 93,500, gaining almost 50% in the fourth quarter alone, BTC still lacks similar success in direct comparison with other major assets. In this context, Franzen points out that the S&P 500 and Nasdaq stock indices have never been beaten by Bitcoin, and the same applies to the NYSE FANG+ index and gold. ‘It’s just a question of when, not if,’ says the expert.
„If we can top our high of USD 93,800 with a strong jump to over USD 100,000, then we won’t fall back to USD 72,000 until the next bull market at the earliest,’ says the crypto analyst, looking at the corresponding price chart. ‘However, if we don’t manage to make the next big leap, then we will probably correct next and it becomes all the more likely that we will slide back towards USD 70,000 – 72,000.’
Tyler Winklevoss, one of the two co-founders of crypto exchange Gemini alongside his brother Cameron, claims that the damage done to the crypto industry by US Securities and Exchange Commission (SEC) Chairman Gary Gensler is irreversible, while speculation about Gensler’s possible resignation has been growing recently. “We should all be clear about one thing. Gary Gensler is evil,’ Winklevoss stated harshlyin an X-Post on 15 November. “He should never again hold a position of influence, power or consequence,” Winklevoss added.
Winklevoss’ comments follow growing optimism among crypto market participants that Gensler, a known crypto sceptic, could resign following Trump’s victory in the US presidential election on 5 November.
During Gensler’s time as SEC chairman, crypto companies such as major exchanges Binance and Coinbase, Ripple and others faced constant legal battles with the regulator. Winklevoss argued that Gensler treated the crypto industry along the lines of ‘regulation by prosecution’ with little regard for those working in the sector: ‘Even though this meant destroying an industry, tens of thousands of jobs, people’s livelihoods, billions of invested capital and more, his sociopathic ambition ironically ended up torching his own political party.’
The likelihood that the US will become a digital asset pioneer in the coming years, or that there will be major positive changes for the industry, is greater than ever!
Digital Asset Market
Market report including trading idea
The majority of digital assets experienced another major upswing last week, with Bitcoin in particular reaching a new all-time high of around $93,000. Altcoins also recorded good price gains, but are clearly lagging behind in terms of performance. Bitcoin could therefore serve the narrative of reaching $100,000 before a possible rotation of capital into altcoins is imminent, but this will only occur through ‘retail capital’, as institutional investors continue to focus ‘only’ on Bitcoin and even Ethereum tends to attract little attention. Due to the slightly negative stock markets in the past week, there is potential for smaller upswings, which would most likely also have a positive impact on Bitcoin. Another negative week could also mean a setback in digital assets. Volatility will also be noticeably higher in the coming week, so trading strategies should be adjusted accordingly!
Chart technology
From a chart perspective, Bitcoin has been hovering around the $90,000 mark for several days now and has not yet experienced any major selling pressure. Many market participants are still hoping for further price gains and thus a consolidating trend is forming at all-time high levels, which cannot be sustained over the entire week. The market for digital assets is therefore approaching a ‘make-or-break’ situation in which there will either be strong rises in the overall market environment or the resistance will be completed and setbacks will follow. Any long-term support above $80,000 would reignite the rally and serve as a point for new entries.
If only minor profit-taking follows again, there could be further positivity.
The next price targets in the event of a positive trend: ~$93,500, ~$95,750 ~$100,000
The next price targets in the event of a negative development: ~$85,500, ~$82,000 ~$80,000
Trading idea
Altcoins that have not yet made a major appearance could provide a good entry point in the event of positivity. Similarly, AI assets could see volatility over the course of the week as NVIDIA reports its quarterly results and, depending on how the data is interpreted, the entire sub-sector could see price movements.
