Matrixport Market Observation: BTC briefly breaks through 89K ATH, can it reach a new high before the end of the year?

With the victory of crypto-friendly President Trump, crypto assets led by BTC have seen good gains recently. Since November 11, BTC has entered a rapid upward channel, breaking through the resistance levels of $80,000 and $82,000, and then the upward trend is unstoppable, with an amazing increase of more than 10%, standing strongly above $89,000, and reaching a maximum of $89,940. At the same time, ETH also broke through the resistance level of $3,000, forcing a 6.4% increase. As of the publication of this article, the price of BTC has slightly adjusted and fluctuated around $88,000 (the above data is from Binance spot, November 12, 17:00).

The total market value of cryptocurrencies has exceeded $3.1 trillion for the first time since November 2021 (the peak of the last bull market). In addition to crypto assets, U.S. stocks also rose sharply yesterday. Not only did the three major stock indexes hit record highs, the Dow Jones Industrial Average stood above 44,000 points for the first time, and the SP 500 broke through 6,000 points for the first time. As the markets attention to crypto assets gradually increases, the net inflow of US dollars into crypto assets has also exceeded ATH. In the crypto FOMO sentiment caused by Trump, investors should treat it rationally, reasonably regulate risks, and make risk allocations.

Market Analysis

The market acceptance of crypto assets is gradually increasing, and the increase in BTC holdings by institutions may further boost the enthusiasm of traditional capital to hold crypto assets. Devcon opens this week, and the collision of technologies is worth paying attention to.

Last week, the net inflow of US dollars was 6.283 billion US dollars, which is the highest weekly inflow of US dollars in the crypto market since January 2022.

SoSoValue data shows that last week (November 4th – November 10th, US Eastern Time), the net weekly inflow of US dollars into the cryptocurrency market reached 6.283 billion US dollars. Among them, the weekly net inflow of US Bitcoin and Ethereum spot ETFs reached 1.792 billion US dollars; the weekly net inflow of fiat-backed stablecoins (USDC, USDT, FDUSD, TUSD, PYUSD, USDP, GUSD) reached 4.492 billion US dollars. As of 18:00 on the 12th, the total cumulative net inflow of the cryptocurrency market reached 184.04 billion US dollars.

Institutions continue to increase their holdings of BTC, MicroStrategy purchases 27,200 BTC

MicroStrategy founder Michael Saylor published an article on the X platform, revealing that MicroStrategy purchased 27,200 BTC at a price of approximately US$2.03 billion, with an average purchase price of US$74,463. This information is another positive news for BTC after MicroStrategy announced a three-year 42 billion BTC investment plan last week.

Ethereum Foundation (EF) core researchers will release a proposal to redesign the Ethereum consensus layer

Justin Drake, a core researcher at the Ethereum Foundation (EF), said in a post on X: Tomorrow at 5 pm, I will announce a major plan on the Devcon main stage. For a year, I have been thinking about what an Ethereum consensus layer redesigned from scratch would look like. My goal is to come up with a reliable strategy to launch an ambitious and exciting beacon link map within a reasonable time frame. After months of brewing with researchers and consensus developers, I am finally ready to publicly propose my proposal. It is still early, and if this new approach to solving the consensus layer roadmap can reach a preliminary consensus, your participation is crucial.

The total open interest of BTC contracts on the entire network exceeded 50 billion US dollars, setting a new record high

On November 12, real-time data from Coinglass showed that the total open interest of BTC futures contracts across the entire network was 612,630 BTC (approximately US$53.3 billion).

Macro dynamics

Biden and Trump will meet at the White House on the 13th

According to Jinshi News, the White House issued a statement on the 9th saying that at the invitation of President Biden, Trump, who won the 2024 presidential election, will meet with Biden at the White House at 11:00 Eastern Time on the 13th (0:00 next Thursday Beijing Time).

Federal Reserve officials will make speeches intensively, and the US October CPI data will be released on November 13.

According to Jinshi News, this week, many Fed officials will make speeches, and the most important one may be Powells speech next Friday. Given that the latest Fed policy statement deleted the statement about progress in inflation and greater confidence in achieving the goal, emphasizing the dual risks of employment and inflation, investors need to pay close attention to their views on Trumps return and whether the Fed will suspend interest rate cuts in the future.

At the same time, on November 13, the US October CPI data will be released, which will also have a significant impact on the markets expectations of interest rate cuts.

Investment advice

The current market FOMO sentiment is serious. Investors are advised to remain rational, properly allocate assets while ensuring perfect risk control, and further avoid risks while capturing returns.

Recently, Matrixport launched a new structured product Installment Purchase. By combining crypto assets with traditional financial investment tools Installment Warrants, investors can use installment payments to lock in potential gains from crypto assets in advance, and the settlement method is flexible after maturity. Investors can choose to pay the balance to obtain the full investment target share, or directly settle the cash value without paying the balance, or directly extend the term according to the current cash value. Installment Purchase is equivalent to providing investors with a low-risk leveraged product with limited losses and no need for additional margin.

As the worlds leading one-stop crypto financial service platform, Matrixport provides users with diversified asset management products, including structured products such as dual-currency investment, Snowball, Shark Fin, Trend Profit, Seagull, and installment purchase; quantitative strategy, passive strategy and other strategic investments. The above products support multi-currency investment and a wide range of investment cycles.

Disclaimer: The above content does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy to residents of the Hong Kong Special Administrative Region, the United States, Singapore, and other countries or regions where such offers or solicitations may be prohibited by law. Digital asset trading may be extremely risky and volatile. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.

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