What Happened in the Crypto Market Last Week: November 4

Key Takeaways from the Past Week:

1. Intense Volatility Amid US Election Projections
   Crypto markets saw heightened volatility due to fluctuating US election predictions, with Trump’s odds swinging on Polymarket. These shifts impacted trading, driving massive liquidations totaling over $425 million, affecting both shorts and longs as investor uncertainty rose.
2. Record-Breaking Inflows into Spot Bitcoin ETFs
   BlackRock’s iShares Bitcoin Trust witnessed record inflows, with $872 million entering the spot Bitcoin ETF in a single day. This influx brought its total assets under management (AUM) to over $30 billion, nearing BTC’s record high.
3. MicroStrategy’s $42 Billion Bitcoin Accumulation Plan
   MicroStrategy unveiled a substantial 3-year plan to acquire $42 billion in Bitcoin. This acquisition strategy involves both equity and fixed income sources, marking one of the largest projected BTC buys by a single entity.
4. UBS Launches Tokenized Investment Fund on Ethereum
   UBS introduced its first tokenized investment fund on Ethereum, a money market fund joining the trend of tokenizing traditional assets to streamline financial transactions and access.
5. Florida’s Expanding Crypto Portfolio
   Florida’s CFO revealed an $800 million crypto-related investment, with potential for expansion if Trump’s administration prioritizes crypto-friendly policies.

In-Depth Weekly Recap

• Bitcoin’s Price Action and Decoupling: Bitcoin price surged past $70,000, nearing its all-time high of $73,700 in March. With positive momentum from ongoing Bitcoin ETF inflows, BTC’s performance contrasted with a broader market decline.
• Bitcoin Volatility at a Peak: As the election approached, Bitcoin’s volatility hit a 3-month high, echoing sentiment from traditional markets, with investors betting on continued price swings around political developments.
• Impact of US Employment Data on Macro Sentiment: The October jobs report revealed the US added just 12,000 jobs, far below expectations. This miss raised questions around the economy’s health, affecting sentiment across crypto and traditional markets.
• Crypto Market Red Across the Board: Despite BTC’s rise, most altcoins remained in decline, with the total crypto market cap anchored around $2.4 trillion. Notably, Solana’s recent gains cooled, and attention shifted to SUI, which posted double-digit gains despite the broader downturn.
• AI and Meme Tokens Continue to Trend: The “AI+Meme” crypto niche continued to capture market attention, with Base’s Virtuals protocol leading the trend. In the meme sector, DOGE gained traction following discussions on potential policy changes favoring a “Department of Government Efficiency” under Trump.
• Maker’s MKR Gains as a Market Outlier: Maker DAO, which had lagged behind other tokens in recent weeks, experienced a rally, catching up in returns even as other decentralized finance (DeFi) tokens faced declines.

Read more: Crypto market bull run

Institutional Developments

• Spot BTC ETF Growth: BlackRock’s and other ETFs’ growing AUM and inflows highlight increasing institutional demand, with Bitcoin ETFs potentially becoming some of the largest BTC holders by year’s end.
• CME Bitcoin Futures Open Interest Hits New Highs: Open interest in BTC futures on the CME rose to record levels, reaching nearly 600,000 BTC, worth approximately $42.6 billion.
• Financial Institutions Embrace Blockchain: Besides UBS, several major financial institutions, including Franklin Templeton, are tokenizing real-world assets, aiming to offer more accessible and efficient investment solutions.

Regulatory Landscape 

• SEC Regulatory Moves: Immutable received a Wells notice from the SEC, spotlighting ongoing regulatory scrutiny in the crypto sector, particularly around potential securities law violations.
• Crypto-Friendly Legislation in Hong Kong: Hong Kong announced it is considering tax concessions for crypto investments, signaling openness to digital assets as a means to attract global crypto players.
• CZ’s First Public Appearance Post-Prison: Binance’s CEO, CZ, made his first public appearance following his prison release at the Binance Blockchain Week in Dubai, addressing the company’s future and market resilience.

Funding and Capital Flow 

• Tether’s Q3 Performance: Tether reported $2.5 billion in profits for Q3 and now holds over $100 billion in US Treasuries, bolstering its standing as a leading stablecoin issuer.
• New Funding Rounds:
  • Glow’s Solar Project raised $30 million in funding, marking a notable intersection of renewable energy and blockchain.
  • Nillion’s $25 million for “Blind Computing” aims to enhance privacy-focused technology within blockchain systems.
  • Ellipsis Labs raised $21 million to launch “Verifiable Finance Blockchain” Atlas, targeting transparency and reliability in DeFi.

Key Events to Watch Next Week 

• US Presidential Election Results (November 5): Expected to have a substantial impact on market sentiment and volatility.
• Federal Reserve Policy Decision (November 7): A highly anticipated rate decision, with potential implications for both crypto and traditional markets.