The crypto market stands on top

Market picture

The cryptocurrency market is consolidating near the $2.5 trillion mark after pulling back slightly from the local peak. Judging by intraday performance, the market is undergoing a shakeout of positions as some players close positions related to the idea of a Republican victory. The market's further momentum will depend on whether politicians continue to support crypto, which creates the risk of volatility.

Bitcoin is hovering around $75.7K, close to the highs. This stabilisation in the 3% range is helping to blow off steam for short-term speculators who were closing in on the idea of a Trump victory. The technical picture has changed a little: Bitcoin is close to the upper boundary of the upward channel, which raises the risk of a corrective pullback. At the same time, after rising above 72, the first cryptocurrency has broken through the upper boundary, suggesting further growth.

Solana is attempting to copy Bitcoin's momentum this year, having reached the March highs. However, trading close to $200, it has yet to break through resistance. It is also still below the 2021 high of $260.

News background

After updating its record in the wake of the US election, Glassnode believes that bitcoin can continue to grow thanks to fresh capital inflows. It has strengthened significantly since the beginning of September, suggesting a growing appetite for risk among investors.

According to CoinShares, Donald Trump's administration is likely to create a more favourable environment for cryptocurrencies, including the passage of the Bitcoin Act. BTC could be approved as a strategic reserve asset, with the US government able to purchase up to 5% of the available issue.

Ethereum developers launched the first test network as part of the Pectra hardfork. The aim is to assess the impact of the EIP before the main network launches in the first half of 2025.

According to Lookonchain, the Ethereum Whale, which holds 398,891 ETH ($1.14 billion), has started selling assets after eight years of inactivity. On 7 November, it sold 13,400 ETH ($37.38m) against a backdrop of ETH rising to $2800.

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