The November 2024 report from CoinEx Research highlights a historic month for the cryptocurrency market, with Bitcoin reaching an unprecedented high of $99,500 after Donald Trump's victory in the US presidential election. Trump's support for the crypto industry, combined with institutional confidence and innovation in the AI-crypto space, set a bullish tone for the market, with Altcoins also experiencing significant growth.
Trump's Victory Leads to Bitcoin's All-Time High
Bitcoin soared from a monthly opening price of $70,300 to a record-breaking $99,500, nearing the symbolic $100,000 milestone. Trump's victory brought optimism, particularly due to his policy implications, which suggest potential regulatory reforms, including the replacement of the SEC chair and discussions around a Bitcoin strategic reserve.
The 2024 Election Ignites the Crypto Boom
Trump's defeat of Kamala Harris, winning all swing states and securing Republican control of Congress, laid the groundwork for crypto-friendly policies. Trump's famous supporter and Dogecoin enthusiast, Elon Musk, sparked interest in the entire crypto ecosystem for Elon-themed MEME tokens.
Institutional Inflows: Bitcoin Spot ETF and Microstrategy Buying Frenzy
In November, institutional support became more evident, with Bitcoin spot ETFs seeing inflows of $6.1 billion, the largest single-month inflow to date, and Microstrategy accumulating an additional 134,480 BTC, equivalent to a cost basis of around $12 billion, further solidifying its market-leading position and supporting the upward price momentum.
When AI Meets Crypto
The convergence of AI, crypto, and MEME has led to innovations in autonomous AI assistants, with examples like Truth Terminal and Goatseus Maximus. These assistants possess advanced functionalities, such as social media engagement and autonomous decision-making. A key driving factor is the open-source Eliza contributed by a16z, which has become one of the most popular projects on GitHub. Building on this, VVAIFU leverages the technology to provide a platform for users to create custom AI assistants and launch MEME tokens through the PumpFun ecosystem. The platform's success is evident in its token burn mechanism, which has already destroyed over 4 million tokens since its launch.
AI Assistants Shaping the Future
The Base ecosystem is continuously expanding, with a focus on AI assistant development. Coinbase's template-based approach allows for the creation of autonomous AI assistants with crypto wallet and on-chain access capabilities, laying the foundation for AI's integration into the crypto space.
Virtual Protocol focuses on game AI agents in 3D environments, while Clanker simplifies token creation through the Farcaster protocol, with over 4,700 tokens deployed and $835.9 million in net inflows.
As Bitcoin's market share declines, altcoins shine
Bitcoin's market share has reached a pressure point, paving the way for a potential altcoin season. Notable altcoin performances include a 4.5x surge in XLM and significant gains in XRP and ADA, doubling in value this month.
The increasing activity of altcoins signals diversification of investor interest and market dynamics. Meanwhile, Bitcoin's market share has reached a critical pressure point and has started to decline rapidly over the past two weeks.
Source: TradingView
Data as of 29 Nov 2024
Stablecoins and liquidity grow rapidly
Stablecoin issuance also saw explosive growth in November, adding $14 billion, reaching the levels of April 2021, reflecting ample market liquidity. This surge parallels the bullish trajectory of the market and suggests the upcoming cycle will continue to grow.
Outlook for December
While Bitcoin reaching the $100,000 milestone, recent risks such as profit-taking, deleveraging, and seasonal slowdown may bring volatility. However, the market's robust liquidity and growing institutional interest suggest a solid foundation for continued expansion towards 2025, with a long-term target of $150,000.
About CoinEx
CoinEx was founded in 2017 and is a global cryptocurrency exchange committed to making crypto trading simpler. The platform provides a range of services, including spot and margin trading, futures, swaps, automated market maker (AMM), and financial management services, to over 10 million users across more than 200 countries and regions.
CoinEx Research remains dedicated to providing in-depth analysis and insights for the evolving cryptocurrency market, helping investors navigate the complexities and opportunities ahead.
