Crypto Markets Daily Nov 11 2024

Another Day, Another All-Time High

BTC hit new all-time highs again over the weekend, currently trading near its high at $82.2K. ETH continued to enjoy a new period of outperformance. This post-election rally has kept positioning in derivatives markets at extreme levels for both majors – funding rates are strongly positive, futures prices range further above spot, and the term structure of implied volatility has reinverted after collapsing at the front end following the election.

Altcoins in general are enjoying this rally even beyond the performance of majors BTC and ETH – key outperformers are memecoins (led by Dogecoin +86% over the last 7 days) and smart contract-enable L1s, whose ecosystems stand to be buoyed by the increased regulatory clarity afforded by the incoming administration. Cardano (ADA) was a particularly strong out-performer over rumours that its founder, Charles Hoskinson, will be given a position in Trump’s cabinet to work on crypto regulation.

As an indication of that activity, the TVL in EVM blockchains has increased over the last week. Ethereum has had a +22.15% (7d) change, compared to the layer 2’s including Arbitrum at a similar +17.58%(7d) and Base +21.31%(7d). In contrast, Polygon was down -10.31%(7d) and Tron, although positive, was at a humble +1.25%(7d).

The National People’s Congress Standing Committee in China confirmed a 10 trillion yuan ($1.40 trillion) fiscal stimulus package on Friday Nov 8th. The package has allocated 6 trillion yuan for local governments to swap their hidden debts and free up funds for economic growth but has underwhelmed markets as it does not directly tackle the deflation problem in China. Currently, the stimulus also lacks a direct path to crypto-assets.