Is $100K next for Bitcoin?

November 12, 2024

Reading time: 5 minutes

Bitcoin closes in on $100,000 after hitting an ATH of $89.5K

Key points:

  • Bitcoin hit successive highs over the last 7 days, peaking at $89,560 on the charts.

  • BTC has hiked by almost 30% since Donald Trump’s election as the United States’ 47th President.

News - The world’s largest cryptocurrency is on a steep uptrend right now, with Bitcoin climbing by over 30% in just over a week to hit a new all-time high of $89,560. Thanks to the same, the crypto market’s capitalization hit a new ATH too, with figures of $3.11 trillion at press time.

As expected, Bitcoin’s performance had an impact on the market’s altcoins too. Ethereum, for instance, recorded a hike of 6% in the last 24 hours alone to go past $3,400.

What’s fueling the rally? - There are several reasons behind Bitcoin, and by extension, the rest of the market’s positive performance. Trump’s election as the United States’ 47th President did have an impact, yes, but that wasn’t all.

Bitcoin’s price action has been spurred by a hike in retail interest and FOMO among traders too. For instance, at the time of writing, the Fear & Greed Index was at its highest level in a year.

The prospect of Rick Scott, a pro-crypto Republican, being elected as Senate Majority Leader in the United States may have contributed to BTC’s price performance too.

Bitcoin’s next steps - What next for the world’s largest cryptocurrency? Well, since much of BTC’s recent performances have been driven by FOMO, some believe that this is unlikely to last. FOMO is often short-lived, and phases of ‘Extreme Greed’ are often followed by price corrections.

This hypothesis was backed by Cryptoquant’s CEO too after he claimed that Bitcoin’s Futures market suggested the cryptocurrency has been overheated lately.

BONK, FLOKI, WIF lead memecoin sector’s charge after Bitcoin’s ATH

Key points:

  • Memecoins have been among the crypto market’s best-performing sub-sectors these days.

  • Strong market tailwinds have contributed to memecoins doing well.

News - Led by Dogecoin (DOGE), the industry’s memecoins have been among the crypto market’s biggest gainers over the past few weeks. While Bitcoin’s own performance certainly helped, so did a few other factors.

Among them, perhaps what stands out the most is Elon Musk’s growing visibility and prominence in the aftermath of Trump’s re-election. With Musk being an old ally of memecoins, these altcoins surged on the price charts.

Other factors in play - That’s not all though as the Federal Reserve’s decision to cut interest rates by 25 basis points helped as well. This rate cut came at a good time for ‘risk-on’ assets like Bitcoin, with the market’s memecoins benefiting by extension too.

Trump’s re-election itself is anticipated to be good news for the crypto sector, with the new administration seen to be in favour of low corporate taxes and deregulation. Taken cumulatively, these steps are likely to benefit risky assets and sectors. Since memecoins are riskier bets compared to the rest of the crypto market, each of the aforementioned factors played into the sector’s performances.

Memecoins gain by double digits - While Dogecoin was one of the market’s best performers, the bullishness wasn’t limited to the world’s largest memecoin. In fact, Solana-based memecoins were especially affected in a very positive way.

For example - While the likes of WIF and BONK hiked by over 50% in the last 30 days, POPCAT appreciated by just under 30% on the charts.

Other memecoins profited too, with the likes of SHIB and FLOKI surging by over 60% in just over a week.

Tether launches wallet development kit for ‘unpredictable future’

Key points:

  • Tether’s latest offering is meant to cater to “human users and AI agents, robots, and autonomous systems.”

  • Open-source kit expected to help businesses, developers integrate non-custodial wallets into any website or app.

News - Tether, the world’s largest stablecoin issuer, is in the news today after it launched an open-source wallet development kit that will allow the seamless integration of non-custodial kits and “user experiences for USDT and Bitcoin in any app, website or device.”

This WDK is currently designed to assist both human users and AI-driven systems.

Key features - According to a press release from Tether, the WDK will give users full access to non-custodial assets, while also reducing reliance on third-party custody solutions. Additionally, this offering will also simplify the setup process.

According to Tether CEO Paolo Ardoino,

“With the launch of WDK by Tether, we’re giving developers and businesses the tools they need to seamlessly integrate USD₮ and Bitcoin into their applications, shifting towards a new paradigm of financial resilience.”

The exec went on to add that right now, the focus will be on “… super-modular, highly scalable and battle tested development libraries that are easy to integrate on any platform.”

Upcoming plans - Here, it’s worth pointing out that while WDK’s focus right now is singular and limited, that might change soon.

In fact, the blockchain firm’s latest WDK offering is expected to embrace all blockchains supported by Tether’s stablecoins soon.

Coinbase’s stock climbs past $300 to hit 2021 levels again

Key points:

  • COIN’s price appreciated by over 20% on 11 November.

  • Less than two weeks ago, Coinbase announced revenues and profits for Q3 2024.

News - Donald Trump’s election as the United States’ 47th President had a ripple effect on quite a few sectors. While Bitcoin, understandably, profited from the same and climbed to a new ATH, so did crypto stocks like MicroStrategy’s MSTR and Coinbase’s COIN.

Thank you, Trump? - For its part, COIN appreciated by over 20% in a single day on 11 November. It also registered a hike of over 80% in the last 30 days alone. Owing to the same, COIN surged past $300 on the charts - A level last seen back in 2021.

According to Morningstar Inc.’s Michale Miller, thanks to the incoming Trump administration, Coinbase’s staking business will face less regulatory pressure. He claimed,

“… a more permissive approach to cryptocurrency will likely provide a tailwind to cryptocurrency prices.”

Coinbase’s Q3 report - The timing behind COIN’s recent fortunes is interesting. Especially since less than two weeks ago, the San Francisco-based crypto exchange announced its revenues and profits for Q3 of 2024 in a shareholder letter. In the same, the exchange announced revenues of $1.2 billion and profits of $75 million.

At the time, CEO Brian Armstrong said,

“We continue to build great products, with a focus on some of the building blocks that are now in place to help bring one billion users onchain.”

Interesting facts

  • SpaceChain launched the first Ethereum node in space in 2021. This project was meant to enhance the security of Ethereum’s blockchain, while reducing its reliance on centralized infrastructure.

  • People with an income of over $100K make up over 25% of all crypto-holders in the United States, despite accounting for just 15% of the country’s population. 

  • In 2018, someone paid 600 ETH for a CryptoKitty dragon. At the time, 600 ETH was valued at just about $170,000. Today, that same amount would be worth upwards of $2 million. 

Top 3 coins of the day

Cronos (CRO)

Key points:

  • CRO emerged as the market’s biggest gainer after it hiked by over 190% in just over a week.

  • Altcoin’s hike pushed CRO upto 28th on the rankings charts.

What you should know:

CRO’s gains of close to 44% in the last 24 hours positioned it as the market’s biggest gainer. This hike wasn’t singular or in isolation though, as the altcoin appreciated by almost 200% since the election results on 05 November. The scale of CRO’s latest hike was underlined by the steepness of the uptrend on the charts. The same was supported by the findings of CRO’s technical indicators too. For instance, while the SMA positioned itself below the price candles to highlight the market’s bullish nature, the Chaikin Money Flow peaked at 0.40 to suggest high capital inflows.

Worldcoin (WLD)

Key points:

  • Worldcoin climbed to its highest level since July 2024 after a 60% weekly hike.

  • Indicators highlighted bullishness, but a correction could be around the corner.

What you should know:

Like the rest of the crypto market, WLD profited from Bitcoin’s recent price performance. While BTC climbed and hit new levels past $85,000 on the charts, Worldcoin hiked to a 4-month-high. Priced at $2.75 at press time, the altcoin’s technical indicators underlined its bullishness. While the Parabolic SAR’s dotted markers were found below the price candles, the RSI climbed from 35 to close to 70. At the time of writing, however, the RSI was close to the overbought zone. This suggested than a price correction might be coming soon.

Monero (XMR)

Key points:

  • XMR was among the very few altcoins to see little movement over the past week.

  • Altcoin’s technical indicators highlighted weakness in the face of the wider market’s bullishness.

What you should know:

It’s been a good few days for most of the market’s cryptocurrencies. Privacy coin Monero, however, isn’t one of them, with XMR continuing to trade within a tight price range at press time. While XMR did hike briefly by about 7%, it soon corrected itself, losing around 5% of its value on the charts. Monero’s market weakness was highlighted by the findings of its indicators. For instance, the constricted mouth of the Bollinger Bands pointed to a fall in market volatility. Similarly, the MACD recorded a bearish crossover on the charts - A sign that XMR’s correction may continue.

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