On Wednesday (November 27), Bitcoin sharply retraced to around $92,300. On-chain data from CryptoQuant revealed that long-term Bitcoin holders sold over 728,000 Bitcoins in the past 30 days. This sell-off represents a reversal from the giant whales who purchased hundreds of thousands of Bitcoins in October. Sources indicate that President-elect Trump may transfer cryptocurrency regulatory authority to the CFTC, weakening the SEC's functions.
A large number of whales woke up to dump 728,000 Bitcoins in a single month.
CryptoQuant data indicates that long-term Bitcoin holders have sold over 728,000 Bitcoins in the past 30 days, worth nearly $67 billion. 'This is the largest sell-off since April, and it also represents a reversal of the trend where whales bought a large amount of Bitcoin in October when inflows were close to 250,000 Bitcoins.'
This significant sell-off comes at a time when the cryptocurrency market is rebounding overall, following Trump's election as president and his strong support for the blockchain industry during his campaign. Notably, Bitcoin's price has surged to a historical high, just a few dollars short of $100,000.
TradingView data shows that Bitcoin's dominance (Bitcoin Dominance, measuring its share of the total cryptocurrency market cap) is currently around 58%, down from recent highs of over 60%.
Informed sources: Trump will transfer cryptocurrency regulatory authority to the CFTC.
U.S. media, citing informed sources, reported that Trump and the incoming administration may grant the CFTC the power to regulate certain digital assets.
Fox Business reported that the CFTC's revised responsibilities may include regulating cryptocurrency exchanges and handling spot markets for digital assets considered commodities (like Bitcoin and Ethereum), thereby weakening the SEC's power to regulate the industry.
In March this year, the CFTC referred to cryptocurrency exchanges as commodities in a complaint, rather than as 'securities' as advocated by SEC Chairman Gary Gensler.
Trump has pledged to strengthen the U.S. cryptocurrency industry, including establishing a federal Bitcoin reserve, appointing the White House's first position dedicated to cryptocurrency, and firing Gary Gensler, who has a strong opposition to cryptocurrencies.
Last week, Gensler announced his plan to resign as Chairman of the SEC on January 20, 2025, the same day Trump will be sworn in as the 47th President of the United States.
It is the inauguration day of Trump as the 47th President of the United States.
Brazil considers establishing a national Bitcoin reserve.
A new bill proposed in the Brazilian Congress aims to establish a sovereign federal Bitcoin reserve, which could reshape the country's attitude towards digital assets. The bill was introduced on Monday by Congressman Eros Biondini and aims to create a sovereign strategic Bitcoin reserve named RESBit.
According to legislation, Bitcoin reserves can protect the country's sovereign reserves from currency fluctuations and geopolitical risks, while also serving as collateral for the country's upcoming central bank digital currency, known as Real Digital.
Sovereign reserves are pools of assets held by a country's central bank, typically used to support the national currency, stabilize the economy, and support international trade. As of December 2023, Brazil's reserves stand at $355 billion, primarily supported by assets pegged to global fiat currencies like the dollar.
According to the proposed legislation, Bitcoin reserves will supplement existing financial assets through phased purchases, up to 5% of the country's reserves. The country's central bank will continue to manage these assets through a public system supported by blockchain and AI technology, backed by a technical advisory committee of security experts.
The bill positions El Salvador's entry into the Bitcoin arena as a model of progress. This Central American country adopted Bitcoin as legal tender alongside the dollar in 2021, aiming to enhance financial inclusion and encourage foreign investment. Since then, the Salvadoran government has actively purchased Bitcoin and currently holds nearly 6,000 Bitcoins, valued at $542 million as of November 26.
According to a bill proposed in Brazil, Bitcoin has helped El Salvador diversify its economy over the past four years. The bill also imposes penalties for non-compliance or mismanagement by RESBit, with violators facing administrative or criminal sanctions. The bill is currently under review by the Speaker of the Brazilian House of Representatives and will be submitted to committees for debate after approval.
Bitcoin Technical Analysis
Economies.com reports that Bitcoin successfully dipped to the awaited target of $91,855, finding solid support there.
Price needs to be monitored now, as breaking this level will push the price towards additional negative targets, reaching $89,410 as the next negative stance.
A consolidation above this level will lead to price attempts to recover and establish a bullish wave, with the main target being to test $95,820.
