Market Analysis – Trump Officially Elected President of the United States, Igniting the Cryptocurrency Market
Yesterday was an incredibly crazy day; as votes were being counted in the U.S., cryptocurrencies began to rise. Ultimately, Trump successfully took office in the White House, and the Republican Party, led by Trump, also secured a majority in both the House and Senate, marking a comprehensive victory. BTC broke through its historical high of $73,777 around 4 AM today, reaching a peak of $76,400, setting a new historical record. This can be considered a historic moment and aligns with the expectations for Q4 market trends mentioned in previous weekly reports. The overall cryptocurrency market also experienced a long-awaited surge, sweeping away the gloom of last week's significant drop, with the BULL trading group achieving nearly 30% profit over the past seven days.
The two sectors with the largest gains yesterday were DeFi and dog-themed meme coins. The former benefited mainly from Trump's policy proposals to loosen financial regulations, and many positive comments regarding DeFi were made at the Bitcoin conference. Trump's presidency undoubtedly unshackles DEFI in the U.S. AAVE and UNI surged by over 40% in a single day, along with ETH, which also saw significant gains in staking protocols, with Pendle and LDO showing very impressive increases.
Currently, if you do not have too many holdings or spot positions, there is no need to rush. You can gradually build your spot positions, and the recommended coins have been mentioned in previous weekly reports. However, for investors looking to use contracts with leverage, it is relatively not advisable at this moment, as the market sentiment is very bullish, and it is likely that the market will face a correction in the short term. Opening leverage positions now may not yield a favorable risk-reward ratio. The contract market tends to continuously wash out positions, as seen yesterday when the massive surge directly liquidated $426 million in short positions across the network, marking the largest short liquidation volume in nearly six months. It is best to wait for the market to cool down a bit before entering.
The overall structure is in a bull market, still riding the honeymoon phase of Trump's election. Many coins appear to have significant gains, but the bear market over the past six months has already halved the market capitalization, and there is still a long way to go to reach previous highs. Therefore, investors do not need to FOMO too much; the most likely time to lose money is actually in the current environment, which can lead investors to overlook potential risks. Additionally, the FOMC meeting, postponed due to the elections, will be held on Friday, and although the market generally expects a 25bp cut, it may cause further volatility. Recently, attention can be focused on ETH, which, aside from having a relatively low base, has also broken through resistance zones due to this wave of positive news, potentially leading to a season of altcoins.
Improved Regulatory Environment Boosts DeFi Concept Sector
Since Trump's victory, the cryptocurrency market seems to have entered the next phase of a bull market cycle, with almost all coins showing significant increases. Among them, the decentralized finance (DeFi) sector has seen particularly notable gains. According to data from Coingecko, the total market capitalization of the DeFi sector has increased by about 17% in the past 24 hours. We believe that the renewed attention on the DeFi sector is primarily influenced by the results of this election.
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Before the election, holding Ethereum and DeFi projects posed much greater risks than holding BTC, as most Democratic government actions targeted ETH or DeFi projects. However, Trump and the Republican Party have historically leaned towards supporting cryptocurrencies in their policies.
In addition to Trump's victory, the Republican Party also controls a majority of seats in both the House and Senate. According to statistics from standwithcrypto, 261 candidates supporting cryptocurrencies won in the House, while 17 senators-elect support cryptocurrencies, with pro-crypto legislators holding a majority in both chambers.
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In other words, the potential risks of holding Ethereum and DeFi projects may have dissipated, replaced by a regulatory environment more conducive to innovation and the development of DeFi.
Ethena's Future Development is Worth Watching
In the DeFi sector, we believe that Ethena, which we previously mentioned, is still worth paying attention to. Since we expressed optimism about ENA in the September weekly report, it has achieved about a 60% increase. We still believe ENA deserves focus; besides the bull market being favorable for users in terms of interest rates (higher bull market funding rates = higher rates offered by Ethena), recently, market maker Wintermute proposed in the Ethena risk committee's proposal to allocate a portion of the protocol's income to ENA token stakers, which would add more value to the ENA token.
However, it is important to note that Wintermute also requires the foundation to disclose the structural framework of the Ethena protocol, particularly regarding the flow of protocol income and whether it is willing to introduce an income distribution mechanism for sENA. In simple terms, Wintermute is asking for an official explanation of whether the protocol's income flows to the developers at Ethena Labs or is 100% retained for the protocol (with a portion allocated to ENA stakers). The official response will lead to two entirely different outcomes.
If the official confirms that part of the income flows to shareholders and refuses to establish an income distribution mechanism for ENA, it may impact the price of ENA negatively; conversely, if the team confirms that all income is retained for the protocol and proposes a complete income distribution structure, it could provide further upward momentum for the ENA token.
The Next Big Surge Opportunity for Dogecoin
Aside from DeFi, Dogecoin (DOGE), which was frequently mentioned during this election due to Musk, has also recently reached new highs. We believe that as the election campaign comes to an end, the upward momentum for Dogecoin may weaken.
However, with Trump's inauguration on January 20, 2025, and Musk officially entering the Department of Government Efficiency (D.O.G.E) around the same time, Dogecoin may have another opportunity to be pushed up due to market attention.
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The returns for 'GTRadar – BULL', 'GTRadar – Balance', and 'GTRadar – Potential Public Chain OKX' over the past 7 days are +29.01%, +5.79%, and 2.85%, respectively, while the returns over the past 30 days are +17.39%, -5.43%, and -7.25%. Currently, 'GTRadar – BULL' holds a net long position of 90%, primarily in BTC and ETH. 'GTRadar – Balance' holds a net long position of about 50%, mainly in SOL and ETH. 'GTRadar – Potential Public Chain' holds a net long position of about 40%, mainly in SOL and ETH. Long-term followers who frequently change their investment portfolios tend to have lower returns than those who consistently follow one group. Do not easily end your following due to short-term pullbacks; from the curve chart, pullbacks are actually good times to start following, while entering and exiting frequently significantly reduces returns.
Focus News
MicroStrategy Plans to Raise $42 Billion Over the Next Three Years to Purchase More Bitcoin
MicroStrategy, the publicly listed company holding the most Bitcoin globally, announced its third-quarter financial report last week, highlighting a 5.1% increase in its "BTC yield." Additionally, MicroStrategy unveiled its "21/21 Plan," aiming to raise $42 billion in funding over the next three years, with $21 billion to be raised through equity and another $21 billion through fixed-income securities. This plan is intended to support further Bitcoin purchases as part of its financial reserve strategy.
Coinbase Reports Decline in Third-Quarter Profits, Announces $1 Billion Stock Buyback Plan
Coinbase stated during its third-quarter earnings report on Wednesday that its board has approved a $1 billion stock buyback plan. "In October 2024, our board authorized and approved a stock buyback plan allowing for the repurchase of up to $1 billion of Class A common stock outstanding, with no expiration date." Coinbase stated, "The timing and amount of any repurchases will depend on market conditions."
On-chain Detectives Gather for Investigation! Famous Influencer MrBeast Profits Tens of Millions from Cutting Retail Investors
loock.io recently disclosed an investigation report targeting overseas YouTuber MrBeast, which involved on-chain analysts such as SomaXBT and Kasper Vandeloock. They compiled a series of evidence through on-chain tracking and past public information to establish a complete picture of MrBeast's cryptocurrency activities.
Tether, the Issuer of USDT, Releases Third-Quarter Report: Achieves $2.5 Billion Profit, Holds 18th Largest U.S. Treasury Position Globally
Tether, the issuer of the stablecoin USDT, recently released its financial audit report for the third quarter of 2024. This audit was conducted by the globally renowned independent accounting firm BDO, showcasing Tether's financial strength and the asset status of its stablecoin issuance entity as of September 30, 2024.
U.S. SEC Issues Wells Notice to Immutable
The U.S. Securities and Exchange Commission (SEC) recently issued a Wells notice to the Ethereum gaming platform Immutable, warning that the company and its IMX token may soon face enforcement actions. An Immutable spokesperson stated that this notice was sent within the past month, and the SEC also sent a letter to Immutable's CEO James Ferguson and the Digital Worlds Foundation, which assisted in issuing the IMX token, accusing them of violating securities laws.
Trump-Supported World Liberty Financial Lowers Fundraising Target by 90%
According to regulatory documents from the U.S. SEC, the cryptocurrency project World Liberty Financial, supported by former President Trump's family, has significantly lowered its fundraising target due to the WLFI token sales progress being far below expectations.
October Non-Farm Payrolls Below Expectations
Due to the impact of hurricanes and Boeing strikes, October non-farm payrolls were only 12,000, far below the expected 106,000. The unemployment rate remained unchanged at 4.1%.
He Yi Clarifies Binance Listing Fee Rumors, Andre Cronje Reveals: Coinbase Charges More
Recently, FUD regarding Binance's Launchpad has spread widely in the community, stemming from claims by the CEO of Moonrock Capital that Binance required an unnamed potential project to provide 15% of its total token supply to list on the centralized exchange. In response, Binance co-founder He Yi denied this claim on social media and clarified that Binance does not charge new projects a percentage of tokens or a fixed amount for listing.
Mt. Gox Wallet Transfers 32,371 Bitcoins, Worth $2.19 Billion
According to data monitored by the on-chain data analysis platform Spot On Chain, the wallet of the now-defunct cryptocurrency exchange Mt. Gox has recently seen continuous fund transfers, moving 32,371 Bitcoins (BTC) to three new wallets on the morning of November 5, valued at approximately $2.19 billion.
TG Mini-Game Falls! Hamster Kombat Loses 259 Million Players, Token Price Plummets Over 70%
Once extremely popular, the "Tap to Earn" TG mini-game Hamster Kombat peaked at 300 million users in August but has now lost 259 million players. According to Protos, the current monthly active users of the game are only about 41 million, and its token has dropped 76% from a high of $0.009993 on September 26 to $0.002392.
F2Pool Co-Founder Withdraws 9,480 ETH from Binance and Stakes
According to information shared by on-chain data analyst Yu Jin, F2Pool co-founder and Stakefish founder Chun Wang withdrew 9,480 ETH from Binance about an hour ago, totaling approximately $23.13 million, and subsequently staked 6,400 ETH through StakeFish.
Pro-Trump Republican Candidate Elected President of the United States
Republican presidential candidate Trump announced his election victory over Democratic candidate Kamala Harris at the Fox News prediction center in Palm Beach, Florida. Cryptocurrencies like Bitcoin surged significantly in the wake of Trump's victory.
Wintermute Requests Ethena Foundation to Clarify Income Flow and Allocate Part of Income to sENA
Cryptocurrency market maker Wintermute today released a proposal in the risk committee of the decentralized finance protocol Ethena, requesting the foundation to disclose the structural framework of the Ethena protocol, particularly regarding the flow of protocol income, and proposing to allocate a portion of the protocol's income to ENA token stakers.
The above content does not constitute any financial investment advice, and all data comes from GT Radar's official announcements. Each user may experience slight differences due to varying entry and exit prices, and past performance does not guarantee future results!