Weekly Crypto Market Wrap: November W1

London: 8 November 2024 (TraderMade): In a politically charged week, the crypto landscape experienced high volatility as the U.S. election results came in, with Donald Trump winning a second term.

Bitcoin (BTC) surged amid uncertainty, briefly touching $72,000, just below its all-time high of $73,794, driven by speculation and increased trading volume. BlackRock's IBIT ETF saw significant inflows of $2.15 billion, reinforcing Bitcoin's status as a hedge against economic risk and inflation.

Key Takeaways

• Bitcoin nears record highs as post-election market conditions stir crypto volatility.
• Speculative trading boosts demand for altcoins and meme coins.
• With Trump's win, BTC and gold emerge as key hedges amidst continued geopolitical risks.

Bitcoin Nears All-Time High

Following Trump's victory, BTC surged, testing resistance near $72,000, fueled by optimism over potentially favourable regulatory stances and fiscal policies. Analysts are watching key levels of $53,000, $66,000, and the $73,794 all-time high as potential markers in the coming days.

With broader markets leaning towards risk assets, Bitcoin may continue its upward momentum under a Trump administration favouring fiscal expansion.

Technical & Macro Factors

BTCUSD Analysis

As anticipated, BTC came close to a new high, testing the 72K zone before encountering resistance. Trump's win brought certainty to markets, with an expected shift toward energy, banking, and Bitcoin investments.

With plans to increase US debt by $7.5 trillion, this administration's approach may support liquidity in risk markets. However, Trump's contentious campaign strategies may lead to further volatility if claims of election rigging persist, with potential impacts on market sentiment.

ETHUSD

Ethereum (ETH) has also shown resilience post-election, trading just below recent highs as it tests key resistance levels around $2,800. Trump's win has introduced certainty to markets, encouraging interest in risk assets like ETH alongside Bitcoin.

Key support levels around $2,500 have held steady, with potential upward movement toward $2,800 if positive sentiment continues. However, Trump's aggressive fiscal policies, aiming to increase U.S. debt by $7.5 trillion, may introduce further volatility, especially if political disputes arise.

This uncertain backdrop could soon impact ETH's price stability, making it sensitive to broader market sentiment.

Broader Risks: Middle East Tensions and Gold

The Israel-Iran conflict remains a significant risk, with geopolitical uncertainty driving haven demand. Gold continues its upward trend alongside Bitcoin, benefiting from scarcity trade dynamics as bond yields adjust. Bitcoin's value relative to gold remains at a 13x gap, presenting further growth potential.

Altcoins & Memecoins Surge on Speculation

Interest in alternative digital assets, including SAND, JUP, AAVE, and meme coins like DOGE and PEPE, surged in anticipation of market shifts following the election. This speculative wave highlights a broadening interest in high-risk assets, with traders seeking gains across volatile markets.

Wall Street & Tech Stocks

Despite losses in tech due to disappointing earnings, analysts believe Trump's clear win could stabilize markets. Energy and banking stocks may see growth, further buoying broader financial stability. With anticipated fiscal expansion, markets may experience a post-election boost.

Crypto Market Outlook

With Bitcoin near all-time highs, the Trump administration's policies may continue to support BTC, gold, and speculative assets. However, high volatility persists, especially amid geopolitical tensions, urging investors to exercise caution.