Bitcoin Tops $38K, Solana Leads Gains
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Today's Market Overview
Solana Leads Layer-1 Token Gains as Bitcoin Crosses $38K
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This episode was hosted by Noelle Acheson. “Markets Daily” is executive produced by Jared Schwartz and produced and edited by Eleanor Pahl. All original music by Doc Blust and Colin Mealey.
Audio Transcript: This transcript is unedited and may contain errors.
It’s Wednesday, November 29th, 2023, and this is Markets Daily from CoinDesk. I’m Noelle Acheson, CoinDesk collaborator and author of the Crypto is Macro Now newsletter. Today, we discuss Bitcoin above $38,000, rate expectations, SEC influence, and more. Follow the podcast on your preferred platform and enable notifications.
Market Roundup
Crypto markets are rising. At 9 a.m. ET, Bitcoin was up nearly 2% in the past 24 hours, trading at $38,118. Ether was up 1% at $2,054. Solana surged almost 8%, Dogecoin rose 5%, and RUNE climbed over 11%. Coinbase's share price increased 7% yesterday.
Bitcoin's sustained presence above $38,000 is significant. While it's approached this level recently, this marks the first time since May 2023 it's remained above this point for more than a few hours. While volatility remains, this feels different. Several factors contribute: resolution of the Binance lawsuit, anticipation of spot ETF approval, and macroeconomic shifts.
Macroeconomic Influences
The sharp shift in rate expectations is crucial. Federal Reserve officials reinforced expectations that the rate peak has been reached. Even hawkish members signaled less need for further hikes, contingent on data. The 10-year U.S. Treasury yield fell below 4.3%, the DXY dollar index declined, and futures markets indicate a high probability of rate cuts in 2024.
This benefits assets, especially those without earnings or cash flow concerns, and those with no yield. Gold neared its all-time high, and this is positive for Bitcoin and the crypto market. Stock market reactions were muted, though futures point to modest gains.
SEC's Diminishing Influence
Kaiko data reveals the impact of SEC actions on crypto asset prices. The SEC has sued several platforms, designating certain tokens as securities. Kaiko analyzed a portfolio of frequently cited tokens (Solana, Cardano, Filecoin, Sandbox, and Polygon's MATIC) and found their aggregate performance is up nearly 30% since January. While initial SEC actions triggered sell-offs, the recent Kraken suit resulted in only slight, temporary price drops.
This suggests investors are assigning a lower probability to the SEC winning these suits, especially after the Ripple case ruling. The regulatory headwind appears to be easing. Investors increasingly believe the SEC's ability to significantly damage the crypto market is waning.
Thank you for listening. That concludes today's show.