Bitcoin nears record highs

19 Kasım 2024

Bitcoin nears record highs amid bets on Trump’s deeper crypto immersion

Written by Samer Hasn, Senior Market Analyst at XS.com

Bitcoin continues its advance for the second day, reclaiming the $91,400 level after a sideways path since the middle of last week. Solana also continues its gains for the third day in a row, consolidating above the $240 level, which is closer to the 2021 record level at $260. Meanwhile, Ethereum fails to maintain all of its recent gains, falling more than 3% today, and remains stuck near the $3,100 level. As for XRP, it continues to follow a sideways path since last Sunday, remaining near the $1.08 level.

Cryptocurrency gains have been reinforced by increasing bets on a radical shift in the regulatory and legislative environment that will support wider adoption of this technology. This also comes with news of the direct involvement of the incoming US President Donald Trump in the crypto market through companies associated with him, which may further encourage him to accelerate the transformation in the sector.

According to the Financial Times, the company that operates the Truth Social platform, Trump Media, is in advanced talks to acquire the crypto trading company Bakkt. While the sons of the incoming president, Eric Trump, Donald Trump Jr., and Barron Trump, are also tied with the DeFi company World Liberty Financial.

This connection of Trump and his family members to the crypto market may push him to commit more towards achieving the promises he made during his election campaign, specifically those related to easing regulatory restrictions that cause uncertainty for companies operating in the sector.

In addition, The Wall Street Journal reported that Trump is holding meetings with the CEO of the Coinbase and one of the most prominent voices calling for easing regulatory obstacles in the sector, Brian Armstrong, in the context of talking about the possibility of him assuming positions in the next administration.

Not only that, Fox Business talked about the possibility of former Binance.US CEO Brian Brooks being appointed to regulatory positions under the next Republican administration. Brooks is also, of course, a vocal supporter of cryptocurrencies.

This is all in addition to the talk of SEC Chairman Gary Gensler being fired upon Trump’s return and rumors of his resignation even during the transition period – but the narrative of such a potential firing is faced by the legal action Gensler could take.

This optimism about a looser regulatory environment next year is keeping the futures even more market active, reflecting its bet on further record levels. Total open interest in Bitcoin futures reached nearly $57 billion today for the first time, according to CoinGlass figures. Meanwhile, the long to short ratio is above 1 today, after a slightly stronger dominance by sellers in recent days. Open interest in XRP futures also continues to rise for a third day after hitting a record high last Sunday, reaching $1.86 billion today.

Ethereum, despite its relatively lackluster performance, futures have also hit a new record high, whether denominated in USD or Ethereum., with over $18.3 billion in open interest, or 5.7 million ETH.

Also, amid Bitcoin’s recent historic gains, we are seeing a significant increase in the number of new addresses on the blockchain, which could indicate more users flocking to the network driven by fear of missing out (FOMO). According to IntoTheBlock’s data, the seven-day moving average for new addresses is rising, now hovering around 366,000 per day, after remaining below 315,000 since mid-October.

 

Zaid Barem / YMM