December 16, 2024
CoinEx’s November 2024 research report highlights a historic month for the cryptocurrency market, driven by Bitcoin’s unprecedented surge to $99,500 after Donald Trump’s victory in the US presidential election. The rally was fueled by Trump’s pro-crypto stance, increased institutional confidence, and innovations in AI and crypto, putting the market on an upward trajectory that also included significant growth in altcoins.
Bitcoin Hits New Record Highs on Trump Win
Bitcoin jumped from a monthly opening of $70,300 to a new record high of $99,500, approaching the symbolic $100,000 mark. Trump’s victory brought optimism, especially with his policies suggesting possible regulatory reforms including replacing the chairman of the Securities and Exchange Commission (SEC) and discussions about adopting a strategic reserve of bitcoin.
2024 US Elections Cause Cryptocurrency Market to Boom
Trump won against Kamala Harris after winning all the swing states and Republicans took control of Congress, paving the way for crypto-friendly policies. Trump’s top supporter and Dogecoin enthusiast, Elon Musk, has sparked a lot of interest in Elon-themed tokens across the cryptocurrency ecosystem.
November saw clear institutional support, with spot Bitcoin funds recording $6.1 billion inflows, the highest monthly figure to date. MicroStrategy also purchased 134,480 Bitcoin for a total cost of nearly $12 billion, further strengthening its market dominance and contributing to the upward momentum in prices.
The convergence of AI, cryptocurrencies, and memes has led to innovations in autonomous AI agents, such as Truth Terminal and Goatseus Maximus. These agents offer advanced capabilities, such as interacting with social media and making decisions independently. The open source Eliza project, to which ai16z contributed, is one of the most prominent projects circulating on GitHub. Building on these foundations, VVAIFU allows users to create custom AI agents and launch tokens via the PumpFun system. The system has seen remarkable success with its token burning mechanism, with over 4 million tokens burned since launch.
Building the Future with AI Agents
The Base ecosystem is expanding with the development of AI agents at its core. Coinbase’s Based Agent templates enable the creation of autonomous AI agents with crypto wallets and chain access, paving the way for AI and crypto integration. Virtual Protocol focuses on AI agents for gaming in 3D environments, while Clanker facilitates the creation of tokens using Farcaster tags, resulting in over 4,700 tokens being deployed. This innovation complements the liquidity flow within the Base ecosystem, which recently surpassed Solana with a net flow of $835.9 million.
Altcoins Shine as Bitcoin Dominance Declines
Bitcoin’s dominance has reached resistance levels, opening the door to a potential altcoin season. Notable altcoin performances included XLM’s 4.5x surge, along with significant gains for XRP and ADA, which doubled in value over the month. The increased activity in altcoins reflects the diversity of investor interest and market dynamics. At the same time, Bitcoin’s dominance has been rapidly declining over the past two weeks.
Stablecoins and liquidity boom
November saw a massive growth in stablecoin issuance, increasing by $14 billion, to levels not seen since April 2021, reflecting significant liquidity in the market. This growth is in line with the market’s upward trajectory and suggests continued growth in the upcoming cycle.
As Bitcoin approaches the $100,000 mark, near-term risks such as profit-taking, leverage reduction, and seasonal slowdown could lead to volatility. However, strong market liquidity and growing institutional interest point to a solid foundation for further expansion in 2025, with a long-term target of $150,000 on the horizon.
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CoinEx Research remains committed to providing in-depth analysis and insights into the evolving cryptocurrency market, helping investors navigate the complexities and opportunities that lie ahead.