In the past week, Bitcoin continued its rapid ascent, surpassing and stabilizing above $90,000. This was followed by a surge in other cryptocurrencies, pushing the total market capitalization above $3 trillion, reports a correspondent from the Kapital.kz business information center.
Experts saw no reasons to halt the growth. Analysts from Bernstein pointed to key factors that they believe will drive Bitcoin to a target level of $200,000 by 2025, as reported by The Block. They emphasized the importance of the positions of the SEC chair and the Treasury Secretary in the new Donald Trump administration after January 20. According to Polymarket, the most likely candidate for Treasury Secretary is Howard Lutnick, CEO of Cantor Fitzgerald. His main competitor was hedge fund manager Scott Bessent, who strengthened his position after gaining support from Elon Musk and nominee for Health Secretary Robert Francis Kennedy Jr. Former Federal Reserve Board member Kevin Warsh has also gained traction.
“The stock markets favored Scott Bessent due to his better positioning on macroeconomic and fiscal stabilization, but Howard Lutnick was considered a more committed Bitcoin bull. In any case, we expected that the chairs of the SEC and Treasury would be those who support cryptocurrencies,” analysts noted in their review. “In the current cycle, demand has been led by institutional investors, corporations, and retail players. In the next phase, sovereign funds will take the lead. The 'seeds' have already been sown. The political winds of change favor candidates who prefer deregulation of cryptocurrencies and oppose CBDCs,” experts explained.
A relaxation of regulatory oversight could simplify token registration and lead to the creation of actively managed digital asset funds, as opposed to passive crypto ETFs. Additional incentives will come from coin purchases for exchange products, as well as by miners and corporations like MicroStrategy. “The new era of cryptocurrency regulation has yet to be properly assessed. We believe that investors should continue to hold Bitcoin proxy stocks for a longer period—at least 12-18 months. If you are in a long position, we expect you to be on the right side of the digital gold story,” the specialists concluded.
If the United States establishes a strategic reserve in Bitcoin, its price could reach $500,000. This conclusion was made by Galaxy Digital CEO Mike Novogratz. “If we get a reserve of Bitcoins, as someone who owns a significant amount of coins, I won't complain. I believe Bitcoin is heading to the $500,000 mark,” the investor stated on Bloomberg Television.
The proposal to create a national strategic reserve of digital gold to strengthen the dollar's position was voiced by newly elected U.S. President Donald Trump during his campaign. He promised not to sell Bitcoins already owned by the government or those that would be obtained in the future. However, Mike Novogratz expressed doubts about the establishment of a strategic Bitcoin reserve under Donald Trump's administration, suggesting that disagreements among power structures could hinder the initiative. Additionally, he believes that the dollar—the currency of the country with the strongest military and largest economy in the world—does not need support. “It would be wise for the U.S. to use the existing Bitcoin, possibly buy more, and show the world its intention to be a country where technology, cryptocurrencies, and digital assets are a priority. I do not believe the dollar needs any support,” he added.
If the reserve is indeed created, it could trigger a new “arms race,” where governments of many countries begin actively acquiring Bitcoin. However, while Mike Novogratz expressed doubts about the creation of a strategic reserve, some other industry leaders have shown a more optimistic view. MicroStrategy's CEO is more optimistic. Establishing a strategic reserve in Bitcoin is “the best deal of the 21st century,” said the company's founder, Michael Saylor, at the CantorCrypto conference. He is confident that such a structure will emerge in the U.S., emphasizing that acquiring strategic assets is not new for the government. As an example, Michael Saylor cited the purchase of the territories of Manhattan, Louisiana, California, and Alaska in the 19th century. Additionally, the government has repeatedly purchased raw materials such as oil, grain, and uranium.
“This has been done before. The idea is very simple: identify where value will be, acquire it at a low price, and hold it. You are a nation, and that's what nations do. Bitcoin is destiny for the United States. I believe the administration of future President Donald Trump understands this, and I think Senator Cynthia Lummis understands this, so it will happen,” noted the founder of MicroStrategy. According to Mike Saylor, if Cynthia Lummis's proposal to acquire 1 million BTC is accepted, the benefit to the government would be about $16 trillion. However, he also entertained a “maximalist scenario” in which the U.S. would acquire 4 million BTC with the prospect of receiving $81 trillion. Current government holdings exceed 208,109 BTC.
Regarding other leading cryptocurrencies, the week was also eventful for them. The SEC is expected to approve spot Solana ETFs by the end of 2025. This opinion was expressed in a comment to the Financial Times by Matthew Sigel, head of digital asset research at VanEck. “I believe the chances of Solana ETF approval by the end of next year are extremely high,” Matthew Sigel stated. He suggested that changes in SEC leadership would create opportunities for more innovations in the crypto industry and an increase in the number of exchange-traded funds based on digital assets. “We expect the SEC to approve more crypto products than in the last four years,” the expert added.
On November 16, the price of the XRP token exceeded the psychological mark of $1 for the first time since December 2021. The asset showed the greatest sensitivity to news about the possible departure of Gary Gensler from the SEC due to the years-long litigation between Ripple and the regulator. The catalyst was a statement from the official, which many viewed as preparation for such a scenario. In December 2020, the SEC accused Ripple of selling unregistered securities in the form of XRP worth $1.3 billion. The defendants in the case also included CEO Brad Garlinghouse and co-founder Chris Larsen. Additionally, the market's growth positively impacted cryptocurrency miners. In the first half of November, the profitability of Bitcoin mining—hashrate—increased by 29%, CoinDesk reported, citing a JPMorgan report. Analysts Reginald Smith and Charles Pierce noted that the significant improvement in mining economics was driven by two main factors: the rally in Bitcoin prices outpacing the growth in hashrate, and an increase in the share of transaction fees in block rewards. The total computational power of the network during this period grew by 2%, reaching an average of 718 EH/s. By the end of the reporting period, due to another recalculation, mining difficulty increased by only 0.63%, confirming the slowdown in hashrate growth. However, the figure, which remains at a record level of 102.29 T, continued to exert pressure on mining profitability. According to JPMorgan, 14 mining companies listed in the U.S., tracked by the bank, still account for about 28% of the network's total capacity. The total capitalization of these enterprises increased by 33%, or approximately $8 billion, from late October to mid-November.
As a result of the past week-long reporting period, the total capitalization of the cryptocurrency market continued its explosive growth following Donald Trump's victory in the U.S. presidential election. As of the evening of Wednesday, November 20, 2024, it surpassed the crucial psychological mark, reaching $3.08 trillion, which is 6.57% higher than the values recorded at the end of the previous reporting period.
1. Bitcoin (BTC). As of the evening of Wednesday, November 20, 2024, the price of Bitcoin was $92,578, having risen by 5.87% over the week. Bitcoin continued to dominate the market, stabilizing above $92,000 and demonstrating a strong upward trend. Despite local pullbacks, the overall BTC dynamics remain positive. Bitcoin's share of the total cryptocurrency market capitalization decreased by 0.52 percentage points to 59.38%. However, BTC's market capitalization reached $1.831 trillion, underscoring its market influence and high investor interest.
2. Ethereum (ETH). As of the evening of Wednesday, November 20, 2024, the price of Ethereum was $3,110, having decreased by 1.64% over the week. Ethereum faced clear resistance at levels above $3,200, triggering a correction. Ethereum's market share dropped by 1.03 percentage points to 12.16%. Despite the price decrease, interest in Ethereum remains stable, but compared to other assets, there is a noticeable out