Key Takeaways
What led to the volatility of the past 36 hours?
Rumors of a government shutdown sparked a brief rally, but as the reports solidified into fact, bullish weakness emerged, retracing the bounce.
What are the notable recent developments in crypto?
The Square Bitcoin payment feature, ETPS cleared to stake their digital assets, the onchain strength of BTC, and the strong Solana fundamentals were some noteworthy developments.
The crypto market cap slid by 1.06% on the 11th of November, falling to $3.54 trillion.
Bitcoin [BTC] and Ethereum [ETH] were down 0.94% and 1.28% respectively, in the past 24 hours. In the early hours of the 10th of November, Bitcoin and Ethereum rallied 1.7% and 2.1% respectively.
These gains came as rumors that an end to the U.S. government shutdown was approaching. On the back of this news, S&P Futures rose, leading crypto higher, but the past 24 hours showed that these short-term gains were mostly retraced.
Moreover, the U.S. Senate passed the funding bill that would cover most of the government’s expenses through to the end of January next year. It goes to the House of Representatives next, and if it goes to plan, it should bring an end to the longest government shutdown on record by the 12th of November.
The past 36 hours saw heightened volatility without the market really going anywhere, hunting down liquidity instead. The news developments recently have been bullish, though.
There is reason for optimism in crypto markets
Payment processor Square launched its own Bitcoin payment feature for sellers.
Jack Dorsey, Co-Founder of Block, which owns Square, said in a post on X that their sellers can now “receive BTC to BTC, BTC to fiat, fiat to BTC, or fiat to fiat.”
In a move that is seen as bullish and could lead to improved Bitcoin treasury flows, famed Wall Street trader James Chanos closed his short position on Strategy [MSTR].
The company’s mNAV contraction was the thesis behind the short. It was prudent to close the position since this thesis has largely played out.
On-chain metrics support accumulation trend
AMBCrypto’s analysis of the Bitcoin onchain metrics showed institutional accumulation and investor confidence.
The Network Value to Transactions metric highlighted growing network activity, while the liquidation heatmap revealed that $108k is the next BTC target.
In the coming weeks, a pronounced shift toward bullish sentiment is possible if BTC climbs back above the $117k local resistance. This would also benefit the altcoin market.
Ripple [XRP] rallied 6.75% on the 10th of November, and had embarked on a $4 billion acquisition spree aimed at building a financial services powerhouse.
Solana [SOL] has generated $2.85 billion in revenue for the year. Strong fundamentals meant Solana saw more building from developers, creating a positive loop.
The landmark guidance issued on the 10th of November by the U.S. Treasury and IRS will allow crypto exchange-traded products (ETPs) to stake digital assets and share rewards with investors.
This allows ETF holders of proof-of-stake assets such as Ethereum and Solana to earn staking yields through traditional brokerage accounts.
Source: https://ambcrypto.com/crypto-news-today-u-s-senate-funding-bill-squares-bitcoin-update-more/