- November 2024 has been one of the most profitable months in cryptocurrency history, with Bitcoin nearing $100,000.
- The Fear and Greed Index indicates extreme optimism among investors, suggesting a potential market correction.
- The appointment of a new SEC Chair by President-elect Trump could significantly impact the future of cryptocurrency regulation in the U.S.
November of 2024 has undoubtedly been one of the most profitable months in the history of cryptocurrencies. Led by Bitcoin which is close to reaching the historic mark of $100,000 per coin — crypto as a whole has seen an outstanding growth since the start of the month.
In that timeframe, the total cryptocurrency market capitalization grew by nearly $1 trillion, going from $2.24 trillion on November 4 to today’s $3.23 trillion.
Assets like DOGE and XRP have reached new heights in the year, leading to an immense popularization of these currencies. This optimism is reflected in the investors’ sentiment as recent reports reveal that BTC holders continue to believe in the currency’s growth past $100k despite it trading at a historic high.
In fact, the cryptocurrency data analysis platform ‘Coinglass’ reveals that this optimism is also reaching near its highest level in history. The ‘Fear and Greed Index’ — an analysis tool that measures the overall market sentiment in cryptocurrencies.
As per the index — current crypto greed levels are around 90 points, with a recent peak at 94 points on November 21st. In context, Coinglass’ highest-ever mark is 95 points, and happened a handful of times during the 2020/2021 market boom and in June of 2019.
In general, extreme greed levels generally precede a market correction, indicating that a potential bearish downturn is imminent. However, as it is the story with all technical indicators — they do not include the context of why an asset behaves as it does.
Despite the outstanding growth this month, there is still a lot to look forward to in the upcoming months. In recent years, cryptocurrency growth has been believed to be hindered by negative pressure from U.S. government agencies like the SEC, particularly for altcoins.
However, the overwhelming majority of investors believe that a more ‘pro-crypto’ government leader will be taking office in January of 2025 when Donald Trump takes office. While the bulk of this market optimism stems from that fact, nothing is to say digital assets can’t sustain this growth if the Republican implements ‘crypto-friendly’ policies during its first year.
A great indicator of what to expect from the future President is his upcoming assignment of the next Securities and Exchange Chair who’ll be replacing Gary Gensler. While there is no specific date for the announcement, Trump is expected to appoint a new Chair before the end of 2024.
So while greed levels are high, the market could find a new equilibrium if positive developments continue to bolster investor confidence.
