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Highlights of the crypto market news today
As the crypto industry continues to grow after the victory of former President Donald Trump on Tuesday, the renowned venture capital firm a16z has sent a message to crypto project founders: Be more confident about the regulatory issue. In a new post, a16z said: "The good news is that there is now a roadmap to actively engage with regulators and build clear regulations." The firm encourages founders: "You should feel more confident in exploring all the breakthrough products and services that blockchain brings, including tokens."
The post, written by a16z's policy and regulatory leaders along with the firm's legal counsel, expresses optimistic expectations about reduced regulations and governance for the crypto space under the new administration. However, the article also emphasizes that "most predictions about the details of this regime are just 'noise' at the moment." a16z particularly emphasizes token issuance as an activity that founders can now pursue with greater confidence.
"For many of you who have delayed using tokens to distribute project control and build community due to over-regulatory concerns, you should now have greater confidence in using tokens as a legitimate tool," the post affirms. The post also reveals a16z's plans for the coming year: "We will push for clear legal frameworks to drive innovation and decentralization. We will also soon release new guidance on using the Decentralized Autonomous Non-Profit Association (DUNA) for projects wanting to be based in the US, protecting token holders from legal liability, managing tax requirements and compliance, and boosting economic activity," the authors write, referring to Wyoming's unique DAO law.
While optimistic, the article also warns that some behaviors may still violate regulations. "While we may have more flexibility to experiment, don't forget that the basic regulatory principles that apply to blockchain systems remain unchanged," the authors caution, encouraging founders to "continue to focus on eliminating centralized elements or trust dependencies in your projects, as these are areas that continue to draw regulatory attention."
Miles Jennings, a co-author of the X post, further shared: "We are optimistic that with clearer rules, it will be easier to identify and weed out bad actors, while enabling legitimate projects to thrive."
Read more related articles:
- Detroit Will Become the Largest US City to Accept Tax and Fee Payments in Crypto
- Brian Armstrong: "Crypto Will Exist According to Policy Perspective"
- Robinhood's Q3 Crypto Trading Volume Rises to $14.4 Billion, Doubling Last Year
BingX Bitcoin Chart
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Bitcoin is on track to post its best weekly performance since February after Trump's re-election victory. Bitcoin price has surpassed the $80,000 mark for the first time in history, with its market capitalization crossing $1.5 trillion just days after the US presidential election. On November 10, the top cryptocurrency rose nearly 4.50% to reach a new all-time high (inflation-adjusted) of $80,116 (according to data from Bitstamp).
Smaller tokens, including Ether, Dogecoin, and Cardano ADA, have also seen strong gains. During the campaign, Trump pledged to make the US a leader in the crypto industry, proposing to develop a strategic Bitcoin reserve and appointing crypto-friendly regulators. After his victory on November 6, Bitcoin surged 15.65% and is on track to post its best weekly trading since February.
Bitcoin has risen around 80% this year, driven by strong demand from US Spot ETFs and the Federal Reserve's interest rate cuts. This has helped Bitcoin outperform traditional investments like stocks and gold. Spot Bitcoin ETFs, such as the $35 billion iShares Bitcoin Trust from BlackRock Inc., have played a key role in the current BTC rally. According to data from Farside Investors, this fund recorded nearly $1.4 billion in net inflows on November 8.
The previous day, the iShares ETF's trading volume hit a record high, reflecting the positive impact of Trump's political return on the crypto industry. Bitcoin's breach of the $80,000 mark has raised expectations of a continued price surge in the coming weeks, with many analysts predicting it could reach $100,000. Crypto Rover, for instance, said Bitcoin tends to set new all-time highs "50-60 days after the US election," and the price could reach $100,000 by January 2025 if the trend plays out as expected.
The current support level for BTC is $79,500, while the resistance level is $82,500.
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