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Bitcoin spurs crypto stocks
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Bitcoin’s election pump is good news for COIN, MSTR, MARA
Key points:
Bitcoin rallied higher above $76K on 6th November after confirmation of Donald Trump’s win.
Rally lifted crypto stocks like Coinbase’s COIN, MicroStrategy’s MSTR, and miners like MARA.
News - Bitcoin rallied higher and tapped $76.4K on 6th November, spurring crypto stocks following Donald Trump's victory in the 2024 U.S Presidential Elections. Stocks linked to crypto exchanges and brokerage firms, alongside BTC miners, also soared with double-digit gains.
Crypto stocks rally - Bitcoin’s strong pump allowed the likes of Coinbase’s COIN to post 31% gains, with the same rallying from $222 to $254. Similarly, crypto brokerage firm Robinhood’s HOOD climbed by 19% while MicroStrategy’s MSTR logged 13% gains.
On the BTC miners' front, the overall sector saw average gains of 18% on Wednesday, as per CoinShares’ Valkyrie Bitcoin Miners ETF [WGMI], which tracks overall miner stock performance.
On the other hand, the S&P 500 Index [SPX] registered gains of only 2.5%. This indicated that BTC and related stocks outperformed other U.S equities after the elections.
Bithumb records 800M XRP exchange withdrawal - A bullish sign?
Key points:
Over 800 million XRP tokens were withdrawn from the South Korean crypto exchange Bithumb.
Net exchange outflows indicated strong accumulation, but the price remained below the key long-term trend (200-day MA).
News - On Wednesday, over 800 million XRP tokens were withdrawn from the South Korean-based crypto exchange Bithumb, sparking market interest and a potential market shift. Following the massive exchange withdrawal, the token rallied by 5.4% during Wednesday’s trading session.
Bithumb XRP withdrawal - On 5th November, about 866 million XRP tokens worth nearly $500 million were withdrawn from Bithumb. Further evaluation of exchange inflows and outflows revealed net outflows of over 1 million XRP tokens. This suggested that holders have been moving their tokens out of centralized exchanges, perhaps convinced of future price rallies.
The spike in network growth, as evidenced by the hike in daily active addresses, showed strong engagement and market interest for the token.
At the time of writing, XRP was valued at $0.554. Contrary to the likes of Bitcoin, the election pump didn’t decisively push it above its 50-day and 200-day Moving Averages (MAs) to reinforce short and long-term bullish trends. That being said, if the rally continues, the H2 supply zone at $0.60 - $0.65 could attract intense profit-taking and might be worth keeping on the watchlist.
Memecoin mania: Trump’s victory almost wipes out PolitiFi sector
Key points:
Memecoins like NEIRO, MOODENG, and DOGE were top performers, despite slight pullbacks.
PolitiFi memecoins like MAGA [TRUMP] tanked as speculators cashed out following Trump’s victory.
News -Trump’s victory renewed speculative interest, with the memecoin market cap soaring to a seven-month high of $67.3 billion. Legacy memecoins like DOGE, Neiro on Ethereum [NEIRO], and Moo Deng [MOODENG] benefited, but the Trump-themed PolitiFi segment was wiped out after his victory.
Mixed performances - NEIRO and MOODENG were the top memecoin gainers, rallying by 31% and 35% in the last 24 hours. DOGE also saw strong traction before and on election day, but recorded a slight pullback at the time of writing.
However, the PolitiFi segment saw a massive cash-out after Trump won. Top political memecoins like MAGA [TRUMP], MAGA Hat [MAGA], and Doland Tremp [Tremp] were down 25%, 38%, and 60% in the last 24 hours, at press time.
On the contrary, some other new political memecoins like President Trump MAGA saw over 800% gains while PEPE TRUMP surged by 120% over the same period. In short, PolitiFi memecoins dumped as speculators booked profits after Trump's victory. By doing so, they shifted their focus to others like NEIRO, MOODENG, and DOGE.
‘U.S election a huge win for crypto,’ says Coinbase’s Brian Armstrong
Key points:
Pro-crypto candidates will dominate the next U.S Congress.
Coinbase’s Brian Armstrong is confident about much-needed regulatory clarity on crypto now.
News - Coinbase CEO Brian Armstrong, who is also the key influence behind Stand With Crypto, an advocacy group, has termed the recent U.S election results a ‘huge win for crypto.’ He cited Trump's remarkable win and the next U.S Congress as pro-crypto.
Pro-crypto Congress - The wider crypto sector's push for regulatory clarity was strongly visible in 2024’s U.S elections. Besides a landslide win for pro-crypto Donald Trump, the next Congress will also be pro-crypto now.
In the Senate, 17 pro-crypto candidates were elected against 12 anti-crypto figures. Armstrong noted that the replacement of Ohio’s Senator Sherrod Brown with Bernie Moreno happened because of crypto support. Here, it’s worth noting that Brown was reportedly the brain behind Operation ChokePoint 2.0, which denied banking access to crypto firms and individuals.
In the House of Representatives, pro-crypto candidates won 257 seats, which Armstrong linked to Stand With Crypto's strong support. This number could help push for crypto-friendly regulations. According to the exec,
“Crypto is here to stay from a policy POV, and we're going to keep showing up until we see sensible legislation passed which protects consumers, and the industry, from future attacks.”
More stories from the crypto ecosystem
Did you know?
Donald Trump will be the first pro-Bitcoin and pro-crypto president in the United States with a massive interest in DeFi projects like World Liberty Financial. The President-elect also has several NFT collections and altcoins, including ETH, amounting to $5M in crypto holdings, according to Arkham Intelligence data.
Ethereum’s L2 ecosystem has a fallback mechanism that allows users to recover $70M locked funds from the defunct dYdX v3 DEX (decentralized exchange). The mechanism, Escape Hatches, developed by L2BEAT and StarkEx Explorer, has been designed for user assurance. It allows users to reclaim assets through Ethereum if an L2 application or protocol misbehaves.
Bitcoin’s rally above $74K after Trump’s victory pushed its market cap to $1.48 trillion, flipping Facebook ($1.44T) and making BTC the ninth-largest asset in the world by market cap. Silver’s $1.775T market size could be the next target if the bull run continues.
Top 3 coins of the day
Aave (AAVE)
Key points:
Trump’s win renewed the ‘DeFi renaissance’ narrative as the segment outperformed memecoins and AI.
AAVE rallied by 36% in the last 48 hours and hit a new yearly high of $190.
What you should know:
The ‘DeFi renaissance’ narrative, which began in the summer, is back after Trump’s victory and this could boost AAVE. The DeFi sector posted impressive performances amid low interest rates during the Fed easing cycle and there might be potential DeFi regulatory clarity under the Trump administration. AAVE hit a new yearly high of $190.8 on the charts, but the RSI and OBV (on-balance volume) suggested that a likely overbought condition was close. However, a strong DeFi narrative could push it higher. If so, any dips could be great buy opportunities, with $200 and $220 as the next short-term bullish targets.
Ethereum (ETH)
Key points:
Since 5th November, while ETH has rallied by nearly 20% it has struggled to defend $2.8K.
ETH broke above its multi-month channel; will it push forward?
What you should know:
According to its daily charts, ETH was in a bullish market structure at press time. The altcoin has been making higher lows and higher highs since August. The bullish breakout from the channel (white) reinforced the potential upside for the altcoin. With the OBV showing room for growth, market optimism could push ETH to $3K, especially if it stays above $2.6K. The cryptocurrency strongly reclaiming $3K could set the stage for hitting $3.5K next, if the market’s recovery continues.
Pepe (PEPE)
Key points:
PEPE faced price rejection on its long-term trendline resistance.
Should you wait for a breakout before going long?
What you should know:
PEPE has rallied by over 30% since 4th November, largely fueled by the ‘Trump trade.’ With whales' recent accumulation spree, the frog-themed memecoin could be poised for more rallies. However, PEPE’s recent uptrend faced price rejection at the long-term trendline resistance ($0.000011). With the RSI nearing overbought conditions, caution may be advisable for short-term traders. However, from a long-term perspective, a break above the trendline could reinforce PEPE’s uptrend continuation.
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