Top Interest of the Week
Following Bitcoin's breakout above the previous resistance level of $73,500, fueled by the bullish sentiment stemming from Donald Trump's victory in the US presidential election, BTC soared to another new all-time high of 93,265 USDT on our spot market on November 13. During this remarkable four-day period, Bitcoin achieved an impressive 22% increase. However, our team observed that meme coins outperformed significantly, capturing market interest and leading to elevated trading volumes.
Dog-themed meme coins have taken the lead in our list of strong-interest coins. Dogecoin ($DOGE), the largest meme coin by market cap, experienced a remarkable 100% increase last week with the market anticipating the announcement that President-elect Donald Trump appointed billionaire Elon Musk to lead the Department of Government Efficiency (D.O.G.E.). The surge in Dogecoin price also led to heightened trading activity for other dog-themed coins, such as Shiba Inu ($SHIB) and Bonk ($BONK), on our Convert platform.
Cardano ($ADA) demonstrated impressive performance last week, with a price increase of 56.1%. This surge was fueled by positive sentiment surrounding the upcoming Chang 2 Hard Fork, which will facilitate various integrations. The upgrade promises to implement full on-chain governance, a feature that the community has eagerly awaited. It will introduce a decentralized voting system, allowing community members to either delegate authority to representatives or manage it directly. This network upgrade has captured the attention of investors, resulting in a significant influx of capital into the project.
Overall Market
The above chart is the BTC daily K-line chart.
BTC experienced a significant upward movement last weekend after successfully breaking through its previous all-time high of 73,777 USDT set in March. Within just four days, the price of BTC surged by an additional 22%, reaching a new peak of 93,265 USDT on November 13. Our analysis indicates a steady influx of capital into US Bitcoin spot ETFs following the US election day, reflecting investor confidence in Bitcoin's prospects, particularly in light of President-elect Donald Trump’s favorable stance towards the cryptocurrency sector.
Moreover, the appealing spread between the spot price and the November month-end deliverables on CME has generated considerable market interest. Traders have been actively purchasing Bitcoin ETFs while simultaneously shorting the deliverables on CME, allowing them to secure an impressive annualized yield of 24%. This trading strategy can be sustained as long as the yield between the spot and deliverables remains attractive, regardless of whether the BTC price appears excessively high. This dynamic may explain the rapid increase in BTC prices when the US market opened on Monday.
As BTC prices rapidly climbed past the 80k, 85k, and 90k thresholds within a matter of days, many traders may have felt underexposed to BTC and sought opportunities for entry during any potential retracement. The critical question remains: will BTC offer a favorable entry point with a significant pullback?
Earlier this year, in February, BTC recorded ten consecutive days of gains, rising 24% from 42k to 52.8k before entering a week-long consolidation phase between 50.7k and 52.8k. After the consolidation, BTC continued its ascent for another 18 days, achieving another 45% increase, with only one instance of a 15% retracement during that time.
Given the robust capital inflow from the spot ETF sector and the profitable yield generation between spot and deliverables, BTC's upward momentum appears to be firmly established. Our projections indicate that BTC will likely maintain its upward trend, albeit at a more gradual pace for the remainder of the year, potentially experiencing a few retracements of 10% or more along the way.
Macro at a glance
Following a hectic week characterized by the US election and the Federal Open Market Committee (FOMC) meeting, this week appears to be relatively calm.
Last Friday (24-11-08)
The unemployment rate in Canada held steady at 6.5% in October, which is marginally better than the anticipated rate of 6.6%. Since June 2024, the Bank of Canada has lowered its interest rate by 125 basis points to support the economy.
On Monday (24-11-11)
The unemployment rate in the UK increased to 4.3% in September, up from 4.0% in August, surpassing the anticipated rate of 4.1%.
In Germany, the monthly CPI experienced a 0.4% rise in October, rising from a 0.0% growth in September. Additionally, the annual CPI rate in Germany rose to 2.0% in October, compared to 1.6% in September.
On Wednesday (24-11-13)
The United States released its CPI and core CPI data for October, with all results aligning with market expectations. The annual CPI increased from 2.4% in September to 2.6% in October, while the annual core CPI remained steady at 3.3%, unchanged from September.
Convert Portal Volume Change
The above table shows the volume change on our Convert Portal by zone.
BTC surpassed its previous all-time high set in March 2024, fueled by the optimistic sentiment following Donald Trump's presidential election victory. This successful breakout indicates the conclusion of a seven-month consolidation period, allowing BTC to enter a new price discovery phase. The robust performance of BTC has invigorated traders' enthusiasm, while meme coins have also gained significant traction in the market, leading to a surge in trading activity on meme coins.
In the Meme sector, the surge in trading volume can be attributed to exceptionally robust trading activities surrounding meme coins. Dogecoin ($DOGE) was the primary contributor to this volume increase, while other meme coins also experienced substantial growth in trading activity last week.
The Solana sector recorded an impressive 302.9% increase in trading volume, largely driven by the strong performance of Solana ($SOL) and the introduction of two new meme coins on the Solana blockchain, Peanut the Squirrel ($PNUT) and Act I The AI Prophecy ($ACT).
Furthermore, the AI sector saw a remarkable 245.3% rise in trading activity, with Act I The AI Prophecy ($ACT) capturing significant market interest.
Why trade OTC?
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