Bitcoin hits new all-time high amidst hopes for a friendly regulatory environment

On 10 November, Bitcoin (BTC) surged by 6.15%, setting a new record high as prices scraped $82,000. The bullish momentum comes in anticipation of a theoretically crypto-friendly administration in the United States, with BTC and many altcoins riding the wave to higher prices.

Market sentiment shows "extreme greed"

Bitcoin's sudden meteoric rise pushed the Crypto Fear and Greed Index, a tool measuring sentiment across the crypto market, to its highest level in nearly seven months, reaching a "greed" rating not seen since April. The index calculates an overall sentiment score based on several factors: market volatility (25%), trading volume (25%), social media sentiment (15%), Bitcoin dominance (10%), and trend data (10%). A survey metric previously weighted at 15% is currently paused.

The index, which peaked at a score of 78, entered the "extreme greed" range (75-100) as Bitcoin's price moved past $81,000 on 31 October. The last time the index hit this level was on 12 April, when Bitcoin was trading around $70,000. The recent rally following Donald Trump's victory in the United States presidential election has been a significant factor in sustaining this sentiment.

Retail interest in Bitcoin picks up as ETF inflows surge

Bitcoin's price rally has renewed interest from retail investors, with Google searches for "Bitcoin" rising substantially over the past week. Despite the uptick, current search volumes still lag behind the last major bull market in May 2021.

Bitcoin's open interest has reached record-high levels, now nearing $50 billion, according to data from CoinGlass. This increase reflects a significant surge in active positions in Bitcoin derivatives markets.

Meanwhile, the situation with institutional investors isn't too different. Another factor behind Bitcoin's price gains is a significant inflow into Bitcoin exchange-traded funds (ETFs). Last week, spot Bitcoin ETFs experienced $1.6 billion in net inflows, with a record day on 7 November, according to Farside Investors.

Bitcoin's supply is limited, and with increased demand, the trend for Bitcoin is only expected to move upwards. Despite previous cycles typically seeing 20-30% corrections, Bitcoin's recent pullbacks have been minor, ranging between 5% and 6%, highlighting the strength of the current market structure.

With the rising open interest and focus on the $80,000 level, market watchers expect increased volatility. However, optimism prevails, with the promise of crypto-friendly policies from the future US administration.

Political climate in the US fuels optimism in the crypto market

Bitcoin's rise has been further supported by Donald Trump's election win and the success of several pro-crypto candidates in the US Senate and House, creating optimism for a more crypto-friendly environment in the coming years.

Potential regulatory changes incoming?

Market participants are particularly hopeful for a more favourable stance from the Securities and Exchange Commission (SEC). The US regulatory body has had several high-profile conflicts with cryptocurrency entities, most notably Ripple (XRP). Trump has previously vowed to replace current SEC Chair Gary Gensler, who has taken a stringent approach to crypto regulation. Mark Uyeda, a current SEC commissioner critical of the SEC's "regulation by enforcement" approach, is seen as a potential successor.

Major altcoins lifted on Bitcoin's rising tide

Ethereum surges 30% in a week

Ethereum (ETH) reached a significant milestone on 10 November, trading at $3,200. That's its highest price since August and pushes it past Bank of America's market cap by $40 billion. With its market cap now standing at approximately $383 billion, Ethereum's valuation underscores the growing impact of blockchain and decentralised finance (DeFi) as they challenge traditional financial (TradFi) institutions. This shift comes as the US Securities and Exchange Commission (SEC) considers the first spot ETH exchange-traded funds (ETFs), which could potentially pave the way for further institutional adoption.

The recent price surge also highlights Ethereum's renewed momentum, even as the network's supply turns slightly inflationary, with a current annual increase rate of 0.42%. While ETH was previously deflationary, recent data show that issuance now surpasses the burn rate, resulting in modest supply growth. Market sentiment is mixed but optimistic, with some analysts predicting a smooth run past the $4,000 mark, while others anticipate a brief pullback before breaking through to new all-time highs.

Adding to the innovation in the Ethereum ecosystem, co-founder Vitalik Buterin recently introduced the concept of "info finance". This framework seeks to gather public insights on future events through prediction markets and aims to harness collective intelligence without media influence. With these developments, Ethereum's ecosystem continues to expand, capturing both investor interest and broader financial relevance.

Solana outshines top cryptos with 34% gains

Solana (SOL) has surged to new heights, reaching $212 on 10 November, marking its highest price since the 2021 bull market. Benefiting from Bitcoin's record-breaking rally and a broader market upswing following Donald Trump's election victory and the Fed's rate cut, SOL led the market with a 34% weekly gain, outperforming Bitcoin and Ethereum. This impressive growth pushed Solana's market capitalisation past the $100 billion mark, placing it alongside Bitcoin, Ethereum, and Tether as one of only four cryptocurrencies above that threshold. The token is now within striking distance of its all-time high of $260, with analysts predicting it could reach that level soon, given its momentum.

The Solana blockchain has rebounded significantly since 2022, establishing itself as a popular platform for retail users, memecoin projects, and a rapidly growing DeFi ecosystem. Solana's network activity has propelled it to become the third-most profitable on-chain trading ecosystem, underscoring its appeal in the current market cycle. This surge has sparked discussions about SOL potentially surpassing Ethereum's market cap in the future, highlighting the shifting dynamics in the layer-1 blockchain space.

Dogecoin shoots for the moon

Dogecoin (DOGE) has experienced an impressive 62% price increase this week, marking its strongest performance since February. This rally comes as Dogecoin's price chart reflects a pattern similar to late 2020, a period that led to a 1,500% surge by early May 2021.

Adding to this bullish setup, a technical indicator known as the "bull cross", where the 50-week simple moving average (SMA) crosses above the 100-week SMA, is poised to materialise for the first time since early 2021. This crossover is often viewed as a signal of upward momentum and has drawn renewed interest from traders. Further reinforcing the bullish outlook, Dogecoin's 14-week relative strength index (RSI) has surpassed 70, an indication of robust upward momentum often associated with FOMO (fear of missing out) phases.

While Dogecoin shows promising potential, its high volatility compared to more stable assets like Bitcoin and Ethereum calls for careful risk management by traders, including close position monitoring and strategic use of stop-loss orders.

Trade Bitcoin and other cryptocurrencies with StormGain

As of the time of writing on 11 November, Bitcoin continues to flirt with $82,000, with the markets still gripped by greed. As the crypto feeding frenzy continues, traders are advised to play it smart and choose their digital trading tools carefully. It's crucial to use a reliable trading platform, one that will help maximise your returns while keeping your assets secure.

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