As anticipated by us internally at Teroxx, Donald Trump won the presidential election campaign and thus caused a relaxed mood on the global financial markets. This euphoria, which was triggered in most markets by the potentially relaxed regulation in the near future, could be followed by positive but very volatile times in which it is essential to pursue suitable and professional strategies! These are not personal opinions, but purely conscious decisions based on news and predictions.
Thought of the week
Digital Asset News
Blackrock’s Bitcoin exchange-traded index fund (ETF) now holds more assets than the asset manager’s gold ETF, despite only being launched in January, Blackrock’s proprietary data shows.
The iShares Bitcoin Trust (IBIT) had net assets of more than USD 33 billion as of 8 November, surpassing the iShares Gold Trust (IAU), which iShares says holds just shy of that amount. That’s an ‘absolutely wild’ achievement, as the IBIT was only launched 10 months ago, while the IAU has been trading since 2005, pointed out Nate Geraci, president of The ETF Store, in a November 8 post on X. The crypto market has skyrocketed following Donald Trump’s victory in the United States presidential election, as many believe his win will benefit the industry, as summarised by Cointelegraph Research. 6 November was promptly the ‘biggest volume day ever’ for IBIT as investors flocked to cryptocurrencies following Trump’s election victory, as Eric Balchunas, ETF analyst at Bloomberg, noted in an X-Post on 6 November. On 7 November, IBIT saw inflows of USD 1.1 billion after two consecutive days of outflows totalling USD 113.3 million, according to data from Farside.
Ethereum co-founder Vitalik Buterin has introduced ‘Info Finance’, a new concept that aims to fundamentally change the way information is collected, validated and shared across different sectors. In his latest blog post ‘From Prediction Markets to Info Finance’, Buterin explores how blockchain technology could help to aggregate, organise and disseminate information more effectively. According to Buterin, ‘Info finance is a discipline of (i) starting with a fact you want to know, and then (ii) deliberately designing a market to optimally elicit that information from market participants’. Buterin argues in favour of prediction markets as a way of gathering knowledge about future events. In this context, he emphasises platforms such as Polymarket, where users bet on outcomes to gain data-driven insights.
‘Election predictions are just the first area of application,’ he explained, emphasising that prediction markets can provide the public with valuable insight into people’s expectations without media influence or sensationalism. Buterin summarised Info Finance as a three-sided market:
‘[…] bettors make predictions, readers read predictions. The market issues predictions about the future as a public good (because that’s what it was created for).’
Norway’s central bank Norges Bank has endorsed the European Union’s (EU) new crypto regulation called Markets in Crypto-Assets (MiCA), while the country is also exploring the possible launch of its own central bank digital currency (CBDC). Kjetil Watne, the project manager of Norges Bank’s CBDC project, said in an interview with Cointelegraph that Norway, as a member of the European Economic Area (EEA), welcomes the MiCA framework. However, he pointed out that the bank is still assessing ‘whether additional regulations are needed to promote financial stability’.
Watne explained that Norges Bank ‘has not yet decided’ whether it will issue a CBDC and that it is looking at how it can ‘minimise regulatory gaps related to decentralised finance’.
As part of the EEA, Norway closely aligns with EU regulations, including MiCA, which Watne says is ‘under public review and currently being assessed by the Ministry of Finance’. According to Watne, Norges Bank sees CBDCs as potentially useful for cross-border payments, but ‘it remains to be seen what a CBDC-based cross-border payment system would look like’. In 2023, the bank participated in ‘Project Icebreaker’:
‘We believe that a potential CBDC, if issued, will complement cash, not replace it. We also believe that digital currencies will continue to exist alongside CBDCs.’
Digital Asset Market
Market report including trading idea
Much of the digital assets experienced major upswings last week and Bitcoin was able to reach a new all-time high and now ranks above $80,000 for the first time. This latest price rally was triggered by Trump’s election and the associated tendency towards looser regulation of the financial markets over the next four years. Bitcoin and digital assets became the centre of attention during Trump’s election campaign, leading to large investments in anticipation of his victory. Overall, this new high is only a logical conclusion from the developments on the global financial markets in recent weeks and months. Altcoins also saw positive momentum and supported the trend of the entire sector.
Chart technology
From a technical chart perspective, Bitcoin is now trading above $80,000 in an upward trend that remains intact. These all-time high levels ensure that, on the one hand, further capital is flowing into the market & providing ‘fomo’, while on the other hand a strong and solid support level is overdue. Increased volatility could therefore be expected in the coming days.
Bitcoin has never seen the current price levels, so it can be assumed that many emotional decisions will be made in the coming days, especially by retail investors. If only minor profit-taking follows, there could be further positivity.
The next upside price targets: ~$83,500, ~$85,000 ~$90,000
The next price targets in the event of a negative development: ~$77,500, ~$75,000 ~$70,000
Trading idea
Altcoins that tend to have a high volume but have not yet been able to benefit from the upswing offer a good risk/reward ratio. Otherwise, it is maybe too late to invest in this trend at this moment.
