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Nov. 4th, 2024

Nov. 4th, 2024

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Today's focus shifts heavily towards the U.S. election's impact on the crypto markets, with Bitcoin, Ethereum, and Solana experiencing various degrees of volatility as the election enters its final stretch. Bitcoin has shown intra-day change, currently hovering around $68,000, while Ethereum has dipped slightly to $2,440. Solana, on the other hand, has shown some resilience, trading at $163.

In the midst of election tensions, CoinDesk has provided an insightful update on the broader crypto market dynamics. The CoinDesk 20, which tracks major cryptocurrencies, noted a decline, with Bitcoin slightly down by 0.1% and Ethereum seeing a more significant drop of 1.4%. Uniswap and Aptos were the notable underperformers in this index.

The political landscape is also influencing crypto-based prediction markets. Platforms like Polymarket and Kalshi are bracing for potential disputes in election outcomes, reminiscent of past contentious elections. This scenario presents a complex challenge in resolving market bets, with potential legal and operational hurdles.

On a related note, the Monetary Authority of Singapore has announced new initiatives to promote the tokenization of financial services, aiming to enhance liquidity and develop industry frameworks for tokenized assets. This move is part of a broader trend where traditional financial institutions, like Citigroup and Fidelity International, are also exploring blockchain solutions for real-time forex swaps and money-market funds.

Venture capital firms are not staying behind in the crypto race either. Andreessen Horowitz has made a significant donation of 23 million dollars to the pro-crypto super PAC Fairshake, aiming to influence future U.S. elections and promote crypto-friendly policies. This reflects a strategic push by the crypto industry to shape regulatory frameworks through political contributions.

Amidst these developments, analysts predict that Bitcoin could see a post-election rally, irrespective of the election's outcome. Historical data suggests that Bitcoin tends to perform well after elections, which could mean potential gains for investors in the coming months.

That’s a wrap for today’s edition of Chain Reaction by Capital Copilot. We hope you’re feeling more informed and ready to navigate the cryptoverse. Until next time, keep your digital wallets ready!

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