Key Takeaways
What led to the volatility of the past 36 hours?
Rumors of a government shutdown led to a brief rebound, but when the reports became reality, bullish weakness emerged, mirroring the rebound.
What are the notable recent developments in crypto?
The Square Bitcoin payment feature, ETPS getting permission to stake their digital assets, BTC’s onchain power, and strong Solana fundamentals were some notable developments.
The crypto market cap fell 1.06% on November 11, falling to $3.54 trillion.
Bitcoin [BTC] and ether [ETH] fell by 0.94% and 1.28% respectively over the past 24 hours. In the early hours of November 10, Bitcoin and Ethereum rose 1.7% and 2.1% respectively.
These gains came on the back of rumors that the US government shutdown was coming to an end. On this news, S&P Futures rose, sending crypto higher, but the past 24 hours have seen most of these short-term gains being reversed.
Moreover, the US Senate passed the financing law that would cover most of government spending until the end of January next year. It then heads to the House of Representatives, and if it goes as planned, it should end the longest government shutdown in history. by November 12.
The last 36 hours have seen increased volatility without the market really going anywhere and instead looking for liquidity. However, news developments have been bullish lately.
There is reason for optimism in the crypto markets
Payment processor Square launched its own Bitcoin payments feature for merchants.
Jack Dorsey, co-founder of Block, which owns Square, said in a message on X that their sellers can now receive “BTC to BTC, BTC to fiat, fiat to BTC or fiat to fiat”.
In a move seen as bullish and could lead to improved Bitcoin treasury flows, famed Wall Street trader James Chanos closed out his short position Strategy [MSTR].
The company’s mNAV contraction was the thesis behind the short. It was wise to do that close the position as this thesis has largely been completed.
Statistics in the chain support the accumulation trend
AMBCrypto’s analysis of Bitcoin onchain metrics showed institutional accumulation and investor confidence.
The Network Value to Transactions metric highlighted growing network activity, while the liquidation heatmap revealed $108,000 as the next BTC target.
A pronounced shift to bullish sentiment is possible in the coming weeks as BTC climbs back above the local resistance at $117,000. This would also benefit the altcoin market.
Ripple [XRP] rose 6.75% on November 10 and had started a A $4 billion takeover wave aimed at building a powerhouse in the field of financial services.
Solana [SOL] has generated $2.85 billion in revenue this year. Due to the strong foundations, Solana saw more building from developers, creating a virtuous cycle.
The groundbreaking guidance issued by the US Treasury Department and the IRS on November 10 will allow crypto exchange-traded products (ETPs) to stake digital assets and share rewards with investors.
This allows ETF holders of proof-of-stake assets like Ethereum and Solana to earn staking returns through traditional brokerage accounts.