Central Banks USD Reserves Drop To New Lows As Dedollarization Continues

The strong performance of Bitcoin (BTC) continued yesterday, reaching a new all-time high above $79,000 before experiencing a slight pullback. Still, some altcoins have emerged as the top performers today, with Ethereum (ETH), which had been relatively slow until this week, making notable gains.

The total market capitalization of Bitcoin has also now surpassed $1.5 trillion, making it the ninth-largest financial asset globally. However, its dominance over altcoins has decreased to 55.5%, with its peak being 57%.

A Recent Surge

At the start of the week, Bitcoin had a lackluster performance, dipping below $67,000 on Monday and staying around that level on Tuesday, but things quickly changed as the week progressed. After Donald Trump won the U.S. presidential race on Wednesday morning, Bitcoin surged, climbing by $8,000 to hit a new all-time high above $75,000. The momentum continued, and Bitcoin reached $77,000 on Thursday following the announcement of yet another interest rate cut.

Friday began with less volatility, with Bitcoin hovering around $76,000, but it spiked again in the evening to reach $77,240, marking its latest peak. Although it has retraced slightly to around $76,500, Bitcoin is still up 10% over the past week and more than 25% in the last month.

Altcoins Make a Comeback

While Bitcoin led the charge mid-week, altcoins have started to shine as well. Ethereum, which had been relatively flat until recently, has seen a significant rise, gaining over 4% in the last 24 hours and 21% over the past week. Ethereum is now trading above $3,000, its highest price in over three months.

Binance Coin (BNB), which was recently overtaken by Solana (SOL) for the fourth-largest cryptocurrency spot, has climbed 6% to reach $630. Other notable gainers include Avalanche (AVAX), Chainlink (LINK), and NEAR Protocol (NEAR). The total cryptocurrency market capitalization has increased by around $50 billion, now sitting at $2.73 trillion.

Other Markets

A recent cyberattack has disrupted the $1.2 trillion car market, while U.S. inflation showed little change in October. A wave of mergers and acquisitions is also expected to benefit debt bankers, and the S&P 500 recently hit its 50th all-time high of 2024. Wall Street remains optimistic, particularly with the influence of Donald Trump driving stock and dollar movements.

The Trump effect continues to shape the markets, drawing comparisons to the 2016 landscape, but with new challenges in 2024. Iran faces power plant issues, and last but not least, the oil and gas sector leads the U.S. in labor productivity growth over the past decade.

Richard Farley of Kramer Levin Naftalis and Frankel and Norm Champ of Kirkland and Ellis are among the individuals being considered for the position of U.S. SEC Chair. The development comes shortly after Donald Trump once again won the United States presidency and one of his main promises was replacing current SEC Chair, Gary Gensler.

Potential Candidates

Farley has worked with major investment banks such as Goldman Sachs, Credit Suisse, and UBS on several significant transactions. He also has connections to Robert F. Kennedy Jr., a prominent ally of former President Donald Trump.

Other potential candidates for the role include Robinhood Chief Legal Officer Dan Gallagher, SEC Commissioner Mark Uyeda, and Heath Tarbert, the former chairman of the Commodity Futures Trading Commission (CFTC).

Still A Ways To Go

The leadership shift of the SEC is expected to significantly impact the future of cryptocurrency regulation. Although talks with potential candidates began shortly after the election, an appointment is not expected for several weeks.

Under the Trump administration, a major focus is expected to be centered around revising current crypto regulations, particularly those that have been viewed as burdensome for the digital assets industry.

The hyper aggressive enforcement approach by Gensler has resulted in multi-billion-dollar penalties against some of the largest cryptocurrency firms. In contrast, the incoming Trump administration is likely to take a more relaxed approach to regulation.

The CEO of WonderFi, a leading Canadian crypto firm, was recently kidnapped during rush hour in Toronto. Many have been wondering as to how the kidnappers managed to pull this off in such a crowded area.

A Close Call
Toronto police were quick to respond after receiving a call about the kidnapping. They located CEO Dean Skurka in Centennial Park, safe but visibly shaken. He later described the ordeal as an incident but reassured the public that neither WonderFi employees nor client assets were harmed. Interestingly, the ransom was paid electronically, which was a significant but effective move to secure his release.

For those following the crypto space, this event serves as a stark reminder of the unique security risks faced by crypto executives. Skurka, who oversees a company with over a billion dollars in assets, experienced the threat firsthand.

Appealing to Criminals
Jameson Lopp, co-founder of security-focused Casa, pointed out that the kidnapping is not an isolated case. As Bitcoin (BTC) recently surged above $75,000, attacks targeting crypto holders tend to spike. The largely untraceable nature of crypto makes it an attractive target for criminals. Moreover, many crypto executives lack robust physical security measures, making them easier targets.
In a strange twist, the kidnapping occurred on the same day WonderFi announced a remarkable 153% increase in its Q3 earnings compared to the previous year. WonderFi now controls more than $1.35 billion in assets and owns companies like Coinsquare and Bitbuy, which has elevated its position in the crypto market. This rapid growth may be one of the reasons criminals view executives like Skurka as valuable targets.

Detroit is introducing a new tax payment option in partnership with PayPal, allowing residents to pay municipal fees using digital assets. This service will be offered through a secure platform, marking the first time such payments are available for city taxes.

Enhancing Security And Transparency

Although the exact launch date is yet to be determined, Detroit plans to roll out the service in mid-2025. In addition to cryptocurrency payments, Detroit officials have been engaging with blockchain entrepreneurs to explore additional ways blockchain technology can be integrated into local government operations.

They are particularly interested in how blockchain can enhance transparency, secure data, and improve the efficiency of public services. In fact, quite a few U.S. cities, such as Williston, North Dakota, and Miami Lakes, Florida, have already enabled residents to pay utility bills with cryptocurrency. 

Rising Cryptocurrency Adoption

Besides Williston, North Dakota, and Miami Lakes, and Florida, other states like Colorado, Utah, and Louisiana also allow crypto payments for certain state taxes. While cities like Miami and New York have shown interest in adopting cryptocurrency, neither has implemented a crypto payment system yet.

Regardless, the initiative by Detroit comes amid growing momentum in the cryptocurrency sector, especially with the election of pro-crypto president Donald Trump. This development is expected to drive broader adoption of crypto and inspire more innovative solutions for civic services. As blockchain technology continues to advance, it holds the potential to significantly improve efficiency and transparency in government administration.

Ripple Labs CEO Brad Garlinghouse has laid out a bold cryptocurrency agenda for President-elect Donald Trump, calling for significant changes to the Securities and Exchange Commission (SEC) and urging the administration to provide clarity on the status of ETH/USD.

After congratulating Trump on his victory, Garlinghouse outlined a set of priorities he believes should be tackled in the first 100 days of the new presidency. At the top of his list is removing SEC Chairman Gary Gensler, whom Garlinghouse criticized for his handling of crypto regulation.

Time For Change

Brad recommended replacing Gensler with one of three candidates he sees as more crypto-friendly, namely former CFTC Chairman Chris Giancarlo, former Acting Comptroller of the Currency Brian Brooks, or ex-SEC Commissioner Daniel Gallagher. According to Garlinghouse, any of these individuals would be a vast improvement in terms of restoring trust and clarity to the regulatory environment.

Garlinghouse also called on Trump to advance the digital asset market structure bill in the Senate, pushing for bipartisan support to ensure its passage. In addition, he urged the administration to clarify whether ETH should be classified as a security, an issue that remains unresolved and central to the ongoing debate around cryptocurrency regulation.

Why This Matters

The recommendations by Garlinghouse reflect his continued commitment to advocating for a regulatory environment that supports cryptocurrency innovation. His push for a bipartisan approach aligns with Ripple adopting a broader strategy of fostering cross-party collaboration on crypto policy.

Interestingly, Ripple has had a complicated political landscape, with executives making donations to candidates across party lines. While Ripple co-founder Chris Larsen supported Kamala Harris during the election, its legal head, Stuart Alderoty, made contributions to Trump-aligned groups.

Moreover, the advocacy by Ripple comes against the backdrop of its long-running legal battle with the SEC over the status of its native token, XRP. The outcome of this case could have far-reaching implications for the entire industry.

The French National Gaming Authority is reportedly considering blocking Polymarket, the blockchain-based platform for prediction markets that recorded $3.5 billion in trading volume during the U.S. Presidential Election.

Earlier this year, Societe Generale FORGE, a subsidiary under the umbrella of the venerable French banking institution Societe Generale, began working on EUR CoinVertible (EURCV), a stablecoin linked to the Euro and deployed on the Ethereum blockchain.

A Personal Gamble

Regulatory scrutiny arose after a French trader named Théo made multimillion-dollar wagers on Donald Trump winning the election, resulting in a $47 million payout when Trump won a second term. The potential ban is based on the ability of the regulator to block access and domain names, and it could also exert pressure on media outlets that direct users to the platform.

France is well known for its stringent policies and regulations, with Pavel Durov, the founder and CEO of Telegram, being detained in the country just a few months ago. Polymarket reportedly contacted Théo, noting his substantial trading experience and background in financial services. After investigating, the platform concluded that the betting activity was motivated by what Théo considers personal views on politics.

The Scrutiny Continues

Polymarket has also faced mounting scrutiny globally, with the U.S. Commodity Futures Trading Commission investigating the platform as early as 2021. The CFTC later proposed new rules aimed at regulating prediction markets to reduce manipulation risks.

Despite regulatory challenges, Polymarket continues to attract substantial betting volumes. The platform raised $74 million in early investments, including backing by Ethereum co-founder Vitalik Buterin, though it remains unavailable to users in the U.S.

Polymarket has also seen significant activity surrounding the 2024 U.S. election, with over $294 million in trading volume on November 5th, 2024 alone. While concerns about insider trading persist, Polymarket has successfully predicted major election outcomes, such as Biden withdrawing and Trump winning, weeks ahead of time.

Over the weekend, a major controversy erupted surrounding Binance and Coinbase, two of the largest centralized cryptocurrency exchanges, after accusations that they were demanding excessive listing fees.

The issue came to light when Simon Dedic, CEO of Moonrock Capital, questioned the listing practices of these exchanges. Dedic claimed that a Tier 1 project, which had raised nearly nine figures in capital, faced difficulties when trying to list on Binance.

The Controversy Continues

According to Dedic, after a lengthy due diligence process, Binance allegedly requested that the project give up 15% of its token supply in exchange for a listing. This fee, which could range anywhere between $50 million to $100 million, sparked significant debate within the crypto community, with many questioning whether such high charges were warranted.

The controversy intensified when Coinbase CEO, Brian Armstrong, responded to Dedic by asserting that Coinbase did not charge listing fees. This statement prompted a quick rebuttal by Andre Cronje, founder of Sonic Labs, who alleged that Coinbase had demanded up to $300 million in listing fees by his company.

Cronje also pointed out that Binance did not impose any fees on Sonic Labs. Supporting Cronje, Tron founder Justin Sun shared his own experience, revealing that Coinbase had requested 500 million TRX tokens (worth around $80 million) and a $250 million deposit in BTC for Coinbase Custody. These revelations raised concerns about potential inconsistencies in how different projects were treated.

Call For Unity

On Monday, former Binance CEO Changpeng Zhao (CZ) responded, expressing appreciation for what Sun had to say but advising against fueling public disputes within the industry. He stressed that projects should focus on development rather than prioritizing exchange listings, citing Bitcoin as an example, as it never paid any listing fees. Sun agreed, reinforcing that building strong projects was the key to success.

Binance co-founder Yi He also addressed the accusations, dismissing them as unfounded and urging the community to rely on factual research rather than rumors. She emphasized that the listing criteria for Binance are transparent and clear before outright rejecting the notion of a 20% listing fee.

On Wednesday morning, Bitcoin (BTC) surged to an all-time high (ATH), surpassing the $75,000 mark on CoinGecko, reflecting a robust 10% gain within just 24 hours. This impressive rally has been attributed to a wave of optimism sparked by early results in the U.S. Presidential Election, which has ignited hope among crypto investors about the potential for former President Donald Trump to once again secure victory.

The Trump Card

The new ATH marks the second record-setting milestone of the year for the flagship crypto, following a similar peak in March. The earlier rally was seen as the end of the prolonged crypto winter, a period of stagnation that had kept digital asset prices in check for several years. With this latest surge, Bitcoin is signaling continued strength and resilience, building on the momentum of its earlier recovery.

Investor excitement around this sharp rise has been closely tied to Donald Trump and his vocal support for cryptocurrencies. As part of his campaign platform, Trump has made it clear that he sees cryptocurrencies, particularly Bitcoin, as a powerful tool for the future of the U.S. economy.

His stance has resonated with many in the crypto space, who have grown frustrated with the U.S. Securities and Exchange Commission (SEC) under Chairman Gary Gensler. Trump has even pledged to replace Gensler, whose stringent regulatory approach has often been seen as a hindrance to the growth of the industry.

Politics And Crypto

In addition to his criticisms of the SEC, Trump has also proposed the creation of a national Bitcoin reserve, a bold idea that has captured the imagination of crypto enthusiasts. Such a move would undoubtedly be seen as a major win for the digital asset ecosystem, providing institutional legitimacy and potentially boosting the value of BTC even further.

The positive sentiment surrounding Bitcoin has also had a ripple effect on the broader cryptocurrency market, lifting the prices of various altcoins and tokens. However, after peaking above $75,000, Bitcoin has seen a slight pullback.

Overall, this recent surge highlights the growing influence of political events on the crypto market, as well as the increasing recognition of Bitcoin and other cryptocurrencies as key players in the financial landscape.

A group of companies spanning traditional finance and the crypto sector, including Robinhood, Galaxy Digital, Kraken, and Paxos, have come together to support a new stablecoin pegged to the U.S. dollar. Other countries such as the United Kingdom have also previously gotten involved with stablecoin regulation.

In a statement on November 5th, 2024, Paxos, a blockchain infrastructure provider, revealed that the newly established open network aims to boost the global adoption and usage of stablecoins. The network is intended to foster worldwide adoption of the new USDG stablecoin, which was launched on November 1st by Paxos.

A Disruptive Initiative

Kraken co-CEO Arjun Sethi commented that the absence of competition in the regulated stablecoin market has held back the industry and its potential. USDG disrupts this by offering a fairer model that will attract mainstream participants and spur new stablecoin use cases, he added.

Initially available only on the Ethereum (ETH) blockchain, Paxos intends to expand USDG to other networks as regulatory landscapes evolve. Paxos will issue USDG out of Singapore, with the firm stating that it fully complies with the stablecoin regulatory framework provided by the Monetary Authority of Singapore. Eligible participants, including custodians, exchanges, and fintech companies, will be able to join the Global Dollar Network by invitation.

Enabling Broader Adoption

The backing of the stablecoin with the U.S dollar will be managed by DBS Bank, the largest financial institution in Singapore. USDG will be fully backed on a 1:1 basis with USD, held in deposits, short-term U.S. government securities, and other liquid assets, ensuring that tokens can be redeemed for fiat currency when needed.

Ronak Daya, who serves as the Head of Product at Paxos, emphasized that the partnership with DBS will enable broader enterprise-level adoption of the stablecoin. In addition to USDG, Paxos offers other digital assets such as PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).

The launch of USDG and its Global Dollar Network will introduce competition in a market largely dominated by two main stablecoin issuers, namely USDT and USDC, which together account for 56% and 27% of the stablecoin supply on Ethereum, according to DefiLlama.

This year, crypto has seemingly finally found its political champion, Donald Trump. For years, the industry struggled to find a figure who could speak to its values of freedom and innovation. Now, Trump is stepping into that role, with promises like a Bitcoin Strategic Reserve, freeing Ross Ulbricht, and even launching his own DeFi project.

His actions and words align with the crypto crowd, drawing millions in donations and support. Trump has displayed a sense of political flexibility that makes him the ideal ally, especially as the crypto community seeks a friend in Washington. But as much as crypto might be excited about this new alliance, there are serious reasons to be cautious.

A Certain Risk

Trump has a history of changing his stance on key issues and this raises doubts about his commitment to crypto. His unprincipled nature is well documented, and he has also been criticized for undermining Constitutional norms to suit his needs. Given his track record and history of going back on his word, it is hard to believe he will follow through on his crypto promises.

Moreover, while crypto has aligned itself with the Republican Party, this can alienate potential supporters on the left. Many in the industry back conservative candidates, and inflammatory comments by crypto advocates only widen the divide. If crypto wants to grow beyond its current base, it needs to avoid divisive rhetoric that turns away key groups, especially liberals and the LGBTQ community, both of which despise Trump.

Controversial Policies

Supporting Trump means supporting more than just crypto-friendly policies. If the industry backs him, it could also be endorsing his stances on immigration, abortion, and other divisive issues. Indeed, associating with Trump and his broader political agenda could damage the crypto industry and its desire to appeal to a wider audience.

In short, while supporting Trump might seem like a win for crypto, it comes with certain risks, both in terms of his reliability and the broader political baggage he brings. Crypto should be careful what it wishes for, as this alliance could have unintended consequences.

As part of an ongoing detailed investigation, several digital analysts have accused YouTuber Jimmy Donaldson, better known as MrBeast, of amassing wealth through various cryptocurrency scams and exploiting his fanbase.

A Troublesome History

The team behind the website Loock.io claims to have uncovered connections to over 50 wallets tied to MrBeast, suggesting a history of insider trading, misleading investors, and promoting tokens only to sell them later. They assert that his public ties to crypto promoters indicate he was tipped off about projects before their values surged.

With alleged involvement in questionable ventures, MrBeast is said to have earned $23 million in digital currencies, a staggering amount given his existing wealth. Jimmy is not the only YouTuber to get in trouble for promoting crypto-based scams, as others like KSI and Logan Paul have found themselves in similar hot waters.

Hard To Digest

The Loock team, including analysts Kasper Vanderloock and others with cryptic handles, has tracked a significant network of wallets all linked to Jimmy for years, starting with his NFT purchases in 2021, when those assets still had value.

While this investigation is intriguing, Gizmodo notes that it can be difficult to digest, even for crypto-savvy individuals. The allegations are not surprising, considering the fact that Donaldson has a history of controversies, including misleading children in giveaways and creating a toxic workplace environment on his Beast Game show.

Meme coins inspired by the beloved pet squirrel and social media star Peanut have recently emerged as exciting new opportunities for cryptocurrency enthusiasts looking to capitalize on trends.

Notable Surges

In a striking development, a token named PEANUT on the decentralized exchange (DEX) Uniswap saw an impressive surge of over 58% in just 24 hours, elevating its market capitalization to around $2.2 million, as reported by CoinMarketCap.

Meanwhile, a similarly named coin launched on the Solana SOL/USD-based DEX Raydium skyrocketed by a remarkable 336% during the same period, though it holds a much smaller market cap of $33,790.

However, it is crucial to note that the liquidity of these tokens remains very low. They are not listed on major cryptocurrency exchanges and are only available on DEXs, leaving them vulnerable to dramatic price fluctuations. Think of it like a rare collectible, as while the excitement can drive up its value, the limited market can lead to significant swings.

Elon Chimes In

The significance of this trend has been amplified by recent events surrounding Peanut, whose untimely death has ignited passionate discussions just ahead of the U.S. Presidential Elections. New York state officials confiscated and euthanized Peanut, along with a raccoon named Fred, citing concerns about potential rabies exposure. This decision triggered an outpouring of outrage across social media, with influential figures and fans expressing their sorrow.

Notably, tech mogul and Republican supporter Elon Musk weighed in, tweeting that President Donald Trump will save the squirrels, along with a heartfelt message of condolence. His post resonated with many, highlighting the emotional connection people have formed with Peanut, who had amassed 666,000 followers on Instagram.

As the conversation surrounding Peanut continues to unfold, it serves as a poignant reminder of the intersection between digital culture and real-world events, reflecting how a small creature can capture hearts and influence trends in unexpected ways.