Market Picture
The crypto market cap fell to $2.88 trillion, down 5% over the day. It appears that the market has started to take profits after a week of rallying. The first target for such a pullback appears to be the March-June resistance area around $2.70 trillion. However, we are optimistic that the market may well pick up cryptocurrencies at higher levels and trigger FOMO.
Bitcoin kept things interesting on Tuesday, starting the day by testing the $90K level, then dropping to $85K before testing $90K again. On Wednesday morning, the price pulled back to $87K, the first significant daily decline in eight days. Technically, a pullback to $84K or even $81K would fit within the correction pattern of the last impulse. In that case, a broader correction could begin. For now, however, we believe the market has stumbled and could quickly return to growth.
News Background
Amid the rapid rise of cryptocurrencies, tech analyst Ali Martinez noted an ‘explosion of institutional FOMO’, citing Bernstein’s recent positive report. ‘We are literally starting the dot-com cycle for cryptocurrencies,’ said Michael van de Poppe, founder of MN Trading.
On 11 November, MicroStrategy shares hit a new all-time high of $351.7, taking its YTD growth rate to 438%. Coinbase shares have been at their highest since November 2021. The exchange’s shares have jumped 75% in the last five days.
Arkham Intelligence notes that 2,500 BTC ($222m) were sent to two unknown addresses from the wallets of the former Mt.Gox. This is the fifth Bitcoin transaction in the last two weeks, totalling more than $2 billion.
Polymarket users are betting that bitcoin will reach $100K by the end of November. The proportion of such bets has reached 57%.
Tesla’s Bitcoin value has exceeded $1 billion. The company holds 11,509 BTC. According to Arkham data, El Salvador’s Bitcoin assets exceeded $500 million. The country holds 5,932 BTC.
