Daily News | BTC Has the Potential to Rebound, Market Buying Remains Strong

Crypto Daily Digest: BTC ETFs resumed large net inflows, SHAR collapsed due to internal sales

According to Farside Investor data, the US Bitcoin spot ETFs had a net inflow of $190 million yesterday. IBIT had a net inflow of $315 million and ARKB had a net outflow of $99 million. Yesterday, there was a small net inflow of $1.26 million into the US Ethereum spot ETF.

Trader: Whether Trump or Harris wins, Bitcoin will rise to $80,000

According to CoinDesk, some traders stated that regardless of which candidate becomes the President of the United States, Bitcoin (BTC) may break through its previous highs in the coming weeks, marking a shift in attitude ahead of the November 5 election.

Traders have long believed that Republican Donald Trump’s victory will be a positive factor for the industry, as he supports cryptocurrency and promises to build the United States into a Bitcoin powerhouse. On the other hand, Democrat Kamala Harris did not make similar commitments, but stated that she would introduce regulations to protect specific groups.

These positions have led people to generally believe that Republicans’ victory is more advantageous than Bitcoin’s. However, some people believe that due to several macroeconomic factors, Bitcoin is expected to rise regardless.

An insider sold 50% of the total amount of SHARE in a transaction, causing a price collapse and earning a profit of $2.4 million

According to Lookonchain monitoring, an insider sold 500 million SHARs (50% of the total supply) in a transaction for 19,620 SOLs (approximately $3.38 million), causing the price of SHARs to collapse by 96%.

The insider used 5,710 SOLs (approximately $948,000) in 16 wallets for sniping, obtained 665.6 million SHARs (66.56% of the total supply), and distributed them to over 100 wallets.

Four hours ago, it collected 500 million SHARs from 104 wallets and sold them all in one operation, earning 13,910 SOLs (approximately $2.4 million).

Bloomberg: BTC options market data shows traders are currently more inclined to bullish

According to Bloomberg, Yev Feldman, co-founder of SwapGlobal, said, “We see traders buying call options around $68,000 and putting options around $66,000 in Bitcoin. In other words, many people keep building and rebuilding positions in hopes of breaking through either direction. However, after the election, the reasons for the decline are limited, so the rise is more meaningful.”

According to data compiled by Deribit, the ratio of put to call options shows a downward trend at the end of the year, with more traders purchasing call options than put options. The open contracts (i.e. total open contracts) of call options expiring on November 29 are concentrated around $80,000, while the open contracts of call options expiring on December 27 are concentrated around $100,000 and $80,000.

David Lawant, head of research at cryptocurrency broker FalconX, said: “I believe the market consensus is that Bitcoin is likely to perform well regardless of the election outcome. The options activity surrounding the upcoming election shows a clear upward trend, indicating that investors are more inclined to use the options market as a tool to gain potential upside space rather than as a hedge against downside risk.”

Market Trends: POPCAT continues to hit a new historical high, GOAT continues to rise sharply

Market Hotspots

The strong performance of SOL prices has driven the collective increase of Solana Chain projects such as BOME, POPCAT, JUP, JTO, etc. POPCAT has once again broken through a historical high, with a market cap of $1.5 billion, becoming the largest cat meme coin by market cap, far ahead of other cat meme coins such as MEW and MANEKI;

The oracle protocol DIA surged by 15%, with DIA prices increasing by over 400% since September. The current circulating market cap of DIA is $135 million, which has a certain upward potential compared to the market cap of the leading protocol LINK, which is $7 billion;

GOAT, the leading AI meme token on the chain, continues to soar, achieving a 300% increase in the past 4 days. GOAT’s current circulating market cap is $630 million, which is already the ceiling for many meme coins that have not yet been listed on mainstream exchanges. Whether GOAT can break through the $1 billion mark requires launching more mainstream trading platforms.

Mainstream Coins

BTC is in a narrow range of fluctuations, with BTC falling to around $65,250 at one point but now rebounding above $67,250. BTC ETF continues to receive large inflows of $190 million, indicating strong market buying;

ETH rebounded after falling to $2,450 after three consecutive days of decline. The market’s attention to ETH has significantly decreased, and the ETH/BTC exchange rate has hit a new low since April 2021;

Altcoins generally fell, with Layer2 token SCR plummeting by 20% and HMSTR, the “click-to-earn” game on the Ton Chain, also plummeting by 12%.

Macroeconomics: US stocks collectively close lower, Tesla’s Q3 financial report falls short of expectations

The three major indexes of the US stock market collectively closed down, with the S&P 500 index falling 0.92% to 5,797.42 points; The Dow Jones Industrial Average fell 0.96% to 42,514.95 points; The Nasdaq index fell 1.63% to 18,276.65 points. The benchmark 10-year Treasury yield is 4.24%, while the 2-year Treasury yield, most sensitive to the Federal Reserve policy rate, is 4.07%.

Since the beginning of this week, several officials from European and American central banks have called for cautious interest rate cuts, and the market has begun to rethink its future policy path. The rise in US bond yields continues to suppress the performance of risk assets. As the US presidential election approaches, Trump’s deal has once again swept the market, and the strong US economic data has also weakened the Federal Reserve’s expectations of future interest rate cuts, both this year and next. The European Central Bank has also become cautious, with decision-makers divided on whether to significantly cut interest rates in December, and President Lagarde calling for “caution.” Overnight, major European stock indices collectively closed lower.

Brent Schutte, Chief Investment Officer of Northwestern Mutual, pointed out that this is all due to the impact of high interest rates. The market is repricing the possibility of a major interest rate cut by the Federal Reserve. Some economic sectors have not yet felt the impact of the rate hike, but the longer interest rates remain high, the more these sectors need to readjust to adapt to this reality, and the economy is already imbalanced. The most highly valued US stocks are large-cap stocks, and due to the ongoing risk of economic recession, the market may experience a short-term downturn.