Author: 1912212.eth, Foresight News
Although Bitcoin has been blocked at the $100,000 whole number mark, funds have clearly flowed into the altcoin market. Data shows that Bitcoin's market share has dropped to 55.25%, while Ethereum has risen to 12.74%, and the ETH/BTC exchange rate has stabilized above 0.037, with smaller market cap altcoin sectors also starting to perform.
In the public chain sector, ADA rose again by more than 15% today, trading around $1.3. The weekly chart has even seen a rare five consecutive increases, realizing a return of over 400% from the bottom of $0.3. FTM rose by more than 17% today, trading around $1.2. AVAX rose by more than 10% today, and by more than 20% in 7 days, XRP rose by more than 85% in 7 days, currently trading at $2.7.
In the RWA sector, ONDO even hit a new all-time high, currently trading at $1.65, up more than 35% in 24 hours and more than 64% in 7 days. In the DeFi sector, LINK rose by 24.49%, MKR rose by 16.08%, and AAVE also recorded an increase of over 11%.
What is the reason for the bullish market?
Tether Mints 16 Billion USDT on Ethereum and TRON
Lookonchain monitoring shows that Tether Treasury minted another 1 billion USDT around 6 am this morning. Tether Treasury has cumulatively minted 16 billion USDT on Ethereum and Tron since November 6.
The market cap of USDC has also risen from $15 billion at the beginning of the month to around $40 billion.
Currently, the total market cap of stablecoins has risen to over $193.9 billion, a new all-time high, with a total increase of 2.3% in 7 days.
The continuous growth of the stablecoin market cap represents that incremental funds are still entering the market to chase smaller market cap project tokens, and after the pursuit of new projects, old projects are also ushering in their own spring.
Favorable US Regulatory Policy Shift
Bitwise CEO Hunter Horsley recently stated that "in the past 30 days, Coinbase's market cap has increased by about $30 billion, and XRP's market cap has increased by about $100 billion. The shift from regulatory resistance to regulatory support in the US is one of the biggest and most important structural catalysts seen in the crypto space, and its impact is just beginning."
Trump is set to officially take office as the next president on January 20 next year, but has been very active in personnel arrangements recently, not only planning to expand the CFTC's regulatory authority over the crypto market and delineate the responsibilities with the SEC. In addition, according to a FOX Business reporter citing sources, Trump will also announce the successor to the SEC chairman tomorrow.
Since SEC Chairman Gary Gensler announced that he will step down when Trump takes office, the market has been eagerly awaiting the successor to the SEC. Although the specific candidate is still unknown, the market generally believes that the next SEC chairman will change the harsh style and turn to a crypto-friendly attitude.
Astute market investors have found that the leading coins in the current market rally, such as ADA and XRP, have also benefited from the US policy shift and soared. On the news front, there are constant positive news, with WisdomTree filing an XRP ETF S-1 registration document with the US SEC. ADA has also been listed on Robinhood US along with XRP and SOL.
As early as November 25, DWF founder Andrei Grachev wrote an article analyzing that the US election will have a huge impact on the market, and in the short term, domestic projects and top-tier VCs in the US will be the most profitable.
Influx of Korean Market Buying
The frenzy of cryptocurrency trading in Korea was already renowned during the previous bull market cycle. After the recent market rally, Korean buying power has been pouring in.
On the major Korean cryptocurrency exchanges Upbit and Bithumb, the number of user accounts for those over 60 years old reached 775,700 (as of the end of September), an increase of 30.4% compared to the end of 2021. This age group holds 67.609 trillion won in cryptocurrency assets, with an average investment of about 8.72 million won per person. At the same time, the demand deposit balance of the five major Korean banks was 592.67 trillion won, a decrease of 26.95 trillion won from the end of June, a new low since January this year.
CryptoQuant data shows that the total monthly trading volume of stablecoins on the top five CEXs in Korea - Upbit, Bithumb, Coinone, Korbit and GOPAX - was about 16.17 trillion won (115 billion USD) in November 2024. This figure includes the total trading volume of stablecoins such as Tether (USDT) and USDC issued by Circle, and is 7 times the around 2 trillion won recorded at the beginning of the year, marking the first time the monthly stablecoin trading volume in Korea has exceeded 10 trillion won.
XRP buying has also been frenzied. Hashed, the largest crypto venture capital firm in Korea, partner Ryan Kim posted on social media that in 2014, Ripple Labs sold XRP to Korean investors through the "Ripple Market Korea" project in a Ponzi scheme manner, and these early investors may have already gained considerable returns, so there is a real XRP community in Korea, which is the reason for the large-scale purchase of XRP by Koreans.
CoinGecko data shows that the 24-hour trading volume of the Korean CEX Upbit reached $18.449 billion, ranking second among CEXs, while the trading volume of the top-ranked CEX Binance was $50.572 billion yesterday.
The Trump effect combined with the expectation of rate cuts has accelerated the transfer of Korean funds from banks to risky assets.
Summary
Bitcoin spot ETFs saw inflows of $6.5 billion in November alone, a new all-time high, far exceeding any other month this year. Currently, with the continuous support of spot ETF buying, large amounts of market funds have flowed out of Bitcoin and Ethereum to various sectors and new and old projects. Matrixport analysis suggests that if Trump's nominations for the Treasury and SEC materialize, the crypto market narrative may evolve into a DeFi revival. The crypto market may maintain a volatile upward trend until Trump's formal inauguration.
