Market Update: Bitcoin and Stock Adjustments

Bitcoin saw a slight pullback recently, settling around $87,000, while major altcoins also saw mild declines, keeping the crypto market cap above $3 trillion.

This adjustment followed gains in the U.S. stock market, with stocks dipping on Tuesday, November 12. Meanwhile, futures and oil prices rose modestly, with gold up to around $2,611 per ounce and oil at $68 per barrel.

Despite this pause, the U.S. remains in the spotlight for crypto, with large inflows into Bitcoin spot ETFs still making waves. Monday marked a record for BTC’s largest one-day gain in history, with prices rising by over $8,300.

With a recent rally, BTC saw profit-taking, yet 99.25% of holders remain in profit at $88,000. U.S.

Record BTC and ETF Inflows

Bitcoin spot ETFs continued to receive significant inflows, though at a lower rate than previous days, totaling $817 million. Leading funds include BlackRock’s IBIT with $778 million and Fidelity’s ETH spot ETFs with $135.9 million in inflows, showing strong market enthusiasm.

Dogecoin Resurgence and Institutional Interest

Dogecoin has also seen renewed interest, particularly following Elon Musk’s tweet about President-elect Trump appointing him and Vivek Ramaswamy to lead a new Department of Government Efficiency (DOGE). This, along with news that Canadian investment firm Spirit Blockchain Capital is accumulating Dogecoin as a reserve asset, boosted DOGE’s price.

Emergency Bitcoin Accumulation by the U.S.?

Senator Cynthia Lummis suggests that a bipartisan bill supporting Bitcoin accumulation could pass within the first 100 days of the new administration. The goal: amass 1 million BTC within five years and hold it as a long-term reserve to help reduce national debt. Should the U.S. proceed, this may compel countries like China and Russia to follow suit, sparking a new wave of national Bitcoin accumulation.

With public interest surging, searches for “bitcoin” on Google Trends have spiked, while altcoins have also shown notable gains. Coinbase, now the second most popular financial app in the U.S., reflects rising investor engagement.

Will Trump Replace SEC Chair Gary Gensler?

Trump’s re-election has sparked discussions about replacing SEC Chair Gary Gensler. Historically, SEC Chairs often resign when administrations change:

• 2016: Donald Trump’s election led then-SEC Chair Mary Jo White to resign.
• 2020: Joe Biden’s election saw SEC Chair Jay Clayton step down shortly after.

This pattern stems from differing financial policies between administrations. When a new administration with opposing priorities takes office, SEC Chairs, appointed by prior presidents, may face pressure to resign, enabling the new administration to implement its economic agenda more effectively.

Presidential Power Over SEC Dismissals

While no Supreme Court ruling explicitly grants the President authority to dismiss the SEC Chair, some legal scholars believe it’s within the President’s power if necessary. Trump might bypass traditional Senate approval using a “recess appointment,” allowing temporary appointments when Congress is in recess, enabling rapid personnel changes to support his administration’s financial policies.

Bitcoin’s Cyclical Patterns: Still on a Four-Year Track?

With BTC’s recent sharp price rise, some question whether Bitcoin’s four-year cycle still holds. A comparison of current price movement to past cycles suggests BTC’s value remains cyclical, with phases of deep bear markets (crypto winter), accumulation, and sharp growth. Despite varied economic events, investor sentiment—driven by fear and greed—remains a fundamental factor shaping Bitcoin’s cyclical nature.

Key Industry Updates

• New HBAR ETF Proposal: Canary recently filed for an HBAR (Hedera) ETF, signaling growing crypto ETF interest as Trump’s administration is expected to take a crypto-friendly stance.
• Genius Group’s Bitcoin Strategy: Singapore-based AI firm Genius Group announced a $120 million initial Bitcoin purchase as a strategic treasury reserve.
• Nano Labs’ BTC Payments: Chinese microchip maker Nano Labs, listed on Nasdaq, will begin accepting Bitcoin payments.
• Bhutan’s Bitcoin Holdings: Government-owned Druk Holdings in Bhutan has accumulated over 12,500 BTC, valued around $1 billion, joining other countries like UAE and Norway in considering Bitcoin as a national reserve asset.

Potential Policy Shifts and Crypto Growth

• Scott Bessent as Treasury Secretary: Trump is reportedly considering hedge fund billionaire Scott Bessent, a strong crypto advocate, for Treasury Secretary.
• Ethereum Foundation Sells ETH: The Ethereum Foundation recently sold 100 ETH for 334,315.7 DAI, marking its first significant ETH sale since the 2024 annual report.
• Italy’s Crypto Tax Reduction: Italy’s government is set to reduce capital gains tax on crypto transactions from 42% to 28%, a move aimed at attracting more crypto investors.

Conclusion: New Growth Cycle for Bitcoin and Crypto?

The market appears poised for a new growth cycle, with Bitcoin and altcoins drawing more investor interest. From potential Bitcoin accumulation by the U.S. government to Dogecoin’s resurgence, these signals indicate a growing crypto momentum. As the market heats up, the next phase of Bitcoin’s journey could bring fresh highs, much like previous cycles.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult a financial professional before making investment decisions.

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