Market Overview

On Sunday, November 17, futures contracts for U.S. stocks rose slightly across all three major indices. Crude oil futures fell to $66.9 per barrel, while gold held steady at $2,593 per ounce.

Bitcoin remained stable around $90,000. Most altcoins also saw positive growth, both daily and weekly. Notable increases were observed in XRP and ADA. The total cryptocurrency market capitalization stood at $3.18 trillion.

BTC Hits Historical Weekly Close

Last week, BTC reached a record-high weekly close. Despite this milestone, the market has quickly normalized to these elevated prices, reflecting a significant shift in market sentiment.

The week ahead in the U.S. is expected to be relatively quiet, with little market-moving news anticipated apart from some speeches from Federal Reserve officials and the release of weekly initial jobless claims data.

U.S. Administration and Crypto: Anticipated Changes

Many anticipate that SEC Chairman Gary Gensler will step down once President Trump assumes office. Trump has been actively planning and proposing personnel changes for key positions, including Treasury Secretary. Elon Musk has publicly endorsed Howard Lutnick for the role. Lutnick, CEO of Cantor Fitzgerald, holds hundreds of millions of dollars in Bitcoin and oversees asset storage for Tether.

While no official nomination has been made for Treasury Secretary, crypto enthusiasts eagerly await these decisions as they could significantly impact Bitcoin’s trajectory.

Will Bitcoin Reach $100,000 in 2024?

With BTC hovering around $90,000, speculation abounds about whether it can break the $100,000 mark before the year's end. Predictions on platforms like Polymarket estimate a 65% likelihood of this happening, while Kalshi and other sources suggest a 57% probability.

In a recent poll conducted on Polymarket, 56% of respondents believed BTC would surpass $100,000. However, nearly a third of participants admitted they are still holding and waiting for altcoins to recover from losses.

For BTC to usher in a robust altcoin season, prices need to surge past $100,000, drawing new participants and capital into the crypto market, which would, in turn, lift altcoin valuations.

Reassessing BTC and USD Valuations

Historically, Bitcoin has been viewed as volatile, primarily because its value is measured against the U.S. dollar, considered a “stable” currency. Ki Young Ju, CEO of CryptoQuant, offers a different perspective.

Ju suggests that rather than BTC fluctuating wildly, it’s the USD’s value that consistently declines over time.

The Reality of USD Devaluation

According to the U.S. Department of Labor, $100 in 2020 is equivalent to $121.23 in purchasing power in 2024, reflecting over 20% inflation in just four years. While official figures suggest modest inflation, real-world impacts are often more significant.

Inflation is an intrinsic part of a debt-driven global financial system. While moderate inflation stimulates economic growth, it also erodes the purchasing power of fiat currencies like the USD. This makes Bitcoin an increasingly attractive store of value.

Comparing Investment Options

Investors often consider assets like gold, real estate, and stocks to hedge against inflation. However, these come with limitations:

• Stocks: Average annual growth of 9-10%, barely outpacing inflation after adjustments.
• Real Estate: Growth rates in the U.S. are generally lower than stocks, with low liquidity.
• Gold: Underperformed over the past decade, with stagnant or declining value over long periods.

Bitcoin, on the other hand, offers unparalleled growth potential. As a new asset class, it has consistently outperformed traditional investments since its inception, attracting interest from institutional investors and corporations alike.

Institutional Adoption on the Rise

Corporations increasingly view BTC as a strategic investment, either for portfolio diversification or as a long-term store of value. This trend is likely to continue as awareness and acceptance of Bitcoin grow.

Additional Updates

1. Bernstein Advocates for Bitcoin Reserves: The firm suggested India consider holding Bitcoin in its national reserves, inspired by Trump’s proposed Bitcoin reserve strategy.
2. Poland’s Presidential Candidate Supports Bitcoin: Presidential candidate Sławomir Mentzen pledged to include Bitcoin in Poland’s national reserves if elected.
3. Thumzup Adds Bitcoin to Reserves: Social media branding company Thumzup announced plans to purchase up to $1 million worth of Bitcoin, approved by its Board of Directors.
4. Dogecoin Investor Lawsuit Against Elon Musk Concludes: After four amended complaints and a $258 billion damages claim, the lawsuit was dismissed due to insufficient evidence of market manipulation or insider trading.

Conclusion

Bitcoin’s record weekly close underscores its growing role as a store of value amid USD devaluation and global economic uncertainty. As market dynamics evolve, Bitcoin continues to demonstrate resilience and potential for significant gains, while institutional and national interest further solidify its place in the global financial ecosystem.

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