How Cryptos Fared In November?
For crypto world, November was a period of unprecedented regulatory action, renewed ETF frenzy and mixed macro-economic scorecard. Nevertheless, market capitalization surged more than 13 percent during the month.
November was witness to an unprecedented regulatory action against Binance.com, the world’s largest cryptocurrency exchange. SEC action against Kraken also happened during the month of November. Markets also digested the ‘guilty’ verdict to Sam Bankman Fried in the FTX fraud trial. The Securities and Exchange Commission’s subpoena against PayPal also weighed on sentiment during this month.
Nevertheless, the dominant theme for the month was a renewal in hopes of a massive mainstream crypto adoption that would ensue with Bitcoin and Ethereum spot ETF product approvals. Excitement over asset management giant BlackRock backing Ethereum with an ETF product added fire to the frenzy. False Spot ETF news related to the XRP cryptocurrency also caused wild price swings and massive liquidations.
The highlight of the macroeconomic picture was the flat reading recorded in the headline month-on-month CPI for October.
Overall crypto market capitalization increased to $1.42 trillion, from $1.27 trillion a month earlier. Market capitalization ranged between $1.27 trillion and $1.45 trillion during the course of the month.
To make sense of the crypto rally, it would be necessary to contrast crypto’s gains with the price moves in other asset classes over the same period. Here is an attempt to put into perspective the rebound or relapse in an array of assets during the month of November.
Gold Futures increased to $2,038.10, from the level of $1,994.30 at close on October 31. The yellow metal’s gain in the month was 2.2 percent.
The Dollar Index, a measure of the Dollar’s strength against a basket of 6 currencies slipped close to 3 percent in November. The index, which was at 106.66 on October 31, tumbled to 103.50 by November 30. The more-than-expected decline in inflation and the renewed rate cut hopes dragged the Dollar and the Dollar Index lower.
Bond yields too heavily whipsawed in the month of November amidst status quo by the Fed as well as the Fed commentary that mellowed over the course of the month. U.S. ten-year bond yields ranged between 4.247 percent and 4.935 percent in the month of November. Yields eased 60 basis points during November, dropping to 4.330 percent from 4.926 percent at the end of October.
During the month of November, the Dow Jones Industrial Average surged 8.8 percent, from the level of 33,052.74 at close on October 31. DJIA closed at 35,950.96 on November 30.
Brent Crude Oil prices slipped 7.5 percent during the month of November. Brent Futures closed at $80.86 on November 30, versus $87.41 at close of trading on October 31.
Here is also an attempt at dissecting the monthly performance of the digital assets.
Among the top 10 cryptocurrencies, Bitcoin gained a little over 10 percent in the past 30 days. Ethereum, the leading alternate coin outperformed Bitcoin with a surge of more than 16 percent.
Despite the regulatory action against Binance, BNB (BNB), the native token of the cryptocurrency exchange gained close to 2 percent.
Among the top 10 non-stablecoin cryptocurrencies, Solana (SOL) topped with gains of close to 60 percent over the 30-day horizon. Cardano (ADA) and Chainlink (LINK), both added 32 percent, followed by Dogecoin (DOGE) that gained 26 percent. Toncoin (TON) recorded an uptick of close to 12 percent whereas TRON (TRX) gained more than 6 percent. XRP (XRP) recorded gains of 3.5 percent.
93rd ranked TerraClassicUSD (USTC), an algorithmic stablecoin topped gains over the past 30 days with a surge of close to 360 percent. The price movement for the cryptocurrency, which is the rebranded version of TerraUSD, the failed stablecoin that caused Terra’s collapse in May 2022 came amidst speculations about the re-peg potential for the USTC stablecoin.
45th ranked FTXToken (FTT) followed with gains of more than 240 percent. The rally comes amidst reports that the SEC Chair Gary Gensler was in favor of a reboot of the FTX cryptocurrency exchange under a new leadership and within the confines of the law.
52nd ranked Celestia (TIA) added 217 percent during the past month. 27th ranked Kaspa (KAS), 84th ranked Sei (SEI), 30th ranked THORChain (RUNE), 100th ranked Helium (HNT), 83rd ranked Blur (BLUR), 37th ranked Immutable (IMX) and 13th ranked Avalanche (AVAX) are the other cryptocurrencies among the top 100 that have added more than 100 percent over the past 30 days.
Only 5 cryptocurrencies among the top 100 have lost more than 1 percent over the past 30 days. 87th ranked Conflux (CFX) topped losses with a decline of 7.6 percent. 19th ranked Bitcoin Cash (BCH) followed with losses of 7.5 percent. 73rd ranked XDC Network (XDC) slipped more than 5 percent whereas 99th ranked Peppe (PEPE) declined 2.7 percent.
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