On Monday (November 11), Bitcoin broke through $81,800 in a short period of time, continuously setting new historical highs. Billionaire Elon Musk reposted a message that seemed to support Donald Trump's plan to intervene in the Fed's policy. Since the establishment of the Federal Reserve Bank in 1913, the US dollar has depreciated by about 96%. The "Musk transaction" has set off in the currency circle. In addition to Bitcoin, Dogecoin has skyrocketed and its market value has surpassed the USDT stablecoin. Legendary trader Arthur Hayes suddenly accumulated a large amount of Ethereum, stimulating the price to soar to $3,200.
Musk backs Trump's plan to 'intervene' in Fed policy
CoinTelegraph reported that Musk retweeted a tweet from Utah Senator Michael Lee, appearing to support calls to end the Federal Reserve, which called for greater executive branch oversight of monetary policy and the abolition of the central bank.
CNBC pointed out that Musk, CEO of Tesla and SpaceX, is a billionaire supporter of Trump who supports the idea of allowing the president to intervene in Fed policy. During the 2024 presidential campaign, Trump often considered giving himself a say in Fed policy if he were to win the White House again.
Lee believes that Fed Chairman Jerome Powell’s recent statement that he would not resign even if President-elect Trump asked him to do so represents a system out of control. “The executive branch is supposed to be led by the president, and the Constitution is designed that way,” Lee wrote. “The Fed is one of many examples of where we are departing from the Constitution in this regard, and another reason why we should dismantle the Fed.”
Lee’s call to abolish the U.S. Federal Reserve banking system represents a growing sentiment among sound money advocates and Bitcoin supporters. Extremists argue that centrally managed fiat currencies are prone to monetary inflation and currency debasement.
As the U.S. national debt tops $35 trillion, Bitcoin is increasingly being touted by lawmakers, individuals and financial institutions as a hedge against monetary inflation caused by decades of money printing by the Federal Reserve.
Florida’s chief financial officer, Jimmy Patronis, one of the officials responsible for overseeing the state’s pension fund, is pushing the fund to invest in Bitcoin to protect consumers’ purchasing power from the rapidly depreciating dollar.
In July 2024, Senator Cynthia Lummis of Wyoming introduced the Bitcoin Strategic Reserve Act in the Senate. Lummis specifically pointed out that rising inflation rates and corresponding declines in purchasing power were the main driving forces behind the bill.
President-elect Trump, who will be inaugurated in January 2025, also revealed a strategic Bitcoin “stash” at the Bitcoin 2024 conference in Nashville, Tennessee. Shortly after Trump delivered his keynote speech at the conference, the new president hinted at using Bitcoin to pay down the national debt.
"Musk transaction" hits the market, Dogecoin's market value exceeds USDC
Hedge funds that have been shorting Tesla have lost billions of dollars since Donald Trump won the U.S. election, hurt by Musk's special relationship with the president-elect.
Data compiled by S3 Partners calculated that hedge funds holding short positions in Tesla had paper losses of at least $5.2 billion from Election Day through the close of trading last Friday.
They are among a shrinking group of investors trapped as many of their peers have liquidated their Tesla positions over the past four months, according to separate data from Hazeltree that tracks the positions of more than 500 hedge funds. The position adjustment coincided with Musk’s July 13 endorsement of Trump.
After Musk, who is regarded as the "father of Dogecoin", boosted the market, Coingecko data showed that the price of Dogecoin (DOGE) rose by 28.1% in the past 24 hours and 90.2% in the past 7 days. The current market value has reached about 42.26 billion US dollars, surpassing USDC's 36.9 billion US dollars. It ranks sixth in market value after BTC, ETH, USDT, SOL and BNB.
Legendary trader Arthur buys a large amount of Ethereum worth $3.3 million
The wallet of BitMEX founder and creative trader Arthur Hayes has recently increased its holdings of Ethereum (ETH). In a series of transactions, the wallet purchased a total of 1,072 Ethereum, worth about $3.31 million. The sudden increase marks the first significant increase in the wallet in the past three months, sparking speculation about Arthur's potential strategy or renewed interest in Ethereum.
According to blockchain transaction data, Wintermute, a well-known cryptocurrency trading company, made three large transfers to Arthur's wallet. The most recent transaction occurred about seven hours ago, adding 540.70 ether to the wallet, worth about $1.69 million. Prior to this, two more transfers were made about 20 hours ago, adding 266.70 and 264.30 ether, worth about $814,620 and $807,180 respectively. These transactions all occurred in a short period of time, accumulating more than 1,000 ether in one day.
According to Lookonchain data, the wallet's last significant activity occurred about three months ago, when it received a small deposit of Ether from a Binance hot wallet. At the time, the wallet accumulated 100 and 109 Ether in two transfers, with a total value of about $541,000. Previous activity was significantly more conservative, suggesting that the latest accumulation may reflect a change in strategy or a reaction to market conditions.
Arthur’s renewed interest in accumulating Ether could signal bullish sentiment in the Ethereum market, and given his influence in the cryptocurrency community, his move could have an impact on Ether’s market dynamics and investor sentiment, especially considering that his wallet has been relatively quiet in recent months.
Bitcoin Technical Analysis
Economies.com said that short trading losses on cryptocurrencies exceeded $280 million, including $130 million worth of Bitcoin short trades and $70 million worth of Ethereum short trades.
Cryptocurrency short trades were liquidated as traders failed to provide enough margin to offset the massive gains in cryptocurrencies over the past few days. Bitcoin surged past the awaited $80,000 target and continues to set new all-time highs.
“More upside seems to be on the cards in the coming period, watch out for the next leg to hit the $81,000 mark, while a break above $78,650 would halt the bullish rally and push prices towards some bearish correction.”
