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, representing a reversal of the giant whales that purchased hundreds of thousands of Bitcoins in October. Insider sources disclosed that the elected President Donald Trump may transfer cryptocurrency regulatory authority to the CFTC, undermining the SEC's functions.
A large number of giant whales are awakening to offload, selling 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, equivalent to nearly $67 billion. 'This is the largest sell-off since April, and it also represents a reversal of the trend where whales purchased a significant amount of Bitcoin in October, when inflows were close to 250,000 Bitcoins.'
This significant sell-off coincides with a comprehensive rebound in the cryptocurrency market, following Trump's presidential election and his strong support for the blockchain industry during the campaign. In particular, Bitcoin's price soared to an all-time high, just a few dollars shy of $100,000.
TradingView data shows that Bitcoin's dominance (measuring its share of the total cryptocurrency market capitalization) is currently around 58%, down from recent highs of over 60%.
Insider sources: Trump will transfer cryptocurrency regulatory authority to the CFTC.
US media cited insiders revealing that Trump and the incoming government may grant the CFTC authority to regulate certain digital assets.
Fox Business reports that the CFTC's changed responsibilities may include regulating cryptocurrency exchanges and handling spot markets for digital assets (such as Bitcoin and Ethereum) considered commodities, thereby undermining the SEC's authority over the industry.
In March this year, the CFTC referred to cryptocurrency exchanges as commodities in a complaint, rather than the 'securities' advocated by SEC Chairman Gary Gensler.
Trump has pledged to strengthen the US cryptocurrency industry, including establishing a federal Bitcoin reserve, appointing the first White House position dedicated to cryptocurrency, and firing Gary Gensler, who has a strong opposition to cryptocurrency.
Last week, Gensler announced his intention to resign as SEC chairman 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.
The newly proposed bill in the Brazilian Congress plans to establish a sovereign federal Bitcoin reserve, which could reshape the country's attitude towards digital assets. The bill was introduced by Congressman Eros Biondini on Monday and aims to create a sovereign strategic Bitcoin reserve called RESBit.
According to the legislation, Bitcoin reserves can protect the country's sovereign reserves from currency fluctuations and geopolitical risks while serving as collateral for the country's upcoming central bank digital currency (called 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 backed by assets pegged to global fiat currencies such as the US dollar.
According to the proposed legislation, Bitcoin reserves will complement existing financial assets through phased purchases, up to 5% of the country's reserves. The central bank will still manage these assets through a public system supported by blockchain and artificial intelligence (AI) technology, with assistance from a technical advisory committee composed of security experts.
The bill positions El Salvador's entry into the Bitcoin sphere as a model of progress, as this Central American country adopted Bitcoin alongside the US dollar as legal tender in 2021, aiming to enhance financial inclusion and encourage foreign investment. Since then, the El Salvador government has been actively purchasing Bitcoin, currently holding nearly 6,000 Bitcoins, valued at $542 million as of November 26.
According to the proposed bill in Brazil, Bitcoin has helped El Salvador achieve economic diversification over the past four years. The bill also stipulates penalties for non-compliance or mismanagement of RESBit, with violators potentially facing administrative or criminal sanctions. The bill is currently under review by the Speaker of the Brazilian Chamber of Deputies and, if approved, will be submitted to a committee for debate.
Bitcoin Technical Analysis
Economies.com states that Bitcoin successfully dipped to reach the awaited target of $91,855, finding solid support there.
It is now necessary to monitor the price, as breaking this level will push the price to realize additional negative targets, reaching $89,410 as the next negative position.
Consolidation above this level will lead to price recovery attempts and establish a bullish wave, with the main target being to test $95,820.
