📊 What Happened Last Week?

Last week was eventful for the crypto market: from Donald Trump’s historic victory to record inflows into Bitcoin ETFs. All of this occurred against the backdrop of growing interest in DeFi.

Let’s break down the key events that impacted the market and what to expect next.

1️⃣ Trump Back in the White House: What Does This Mean for Crypto?

Donald Trump secured victory in the election with 312 electoral votes. The result? Bitcoin surged by 8%, reaching a new all-time high of $75,000.

📈 Why It Matters:

Trump has pledged to turn the U.S. into a global crypto hub and establish a strategic Bitcoin reserve.

This paves the way for a new DeFi boom — Sky founder Rune Christensen predicts DeFi could grow 10x due to reduced regulatory uncertainty in the U.S.

2️⃣ Robinhood Nears SEC Leadership

Trump’s team is considering Dan Gallagher, Robinhood’s Chief Legal Officer, for SEC Chair.

Gallagher is known for his lenient approach to crypto regulation and support for innovation. Other candidates include Paul Atkins and Robert Stebbins.

3️⃣ Fed Lowers Interest Rate to 4.75%

The Federal Reserve cut rates by 25 basis points. Fed Chair Jerome Powell stated that inflation is slowing, but the economy remains stable.

4️⃣ Record Inflows into Bitcoin ETFs

On November 7, spot Bitcoin ETFs attracted $1.376 billion in a single day.

◽️ BlackRock: $1.12 billion
◽️ Fidelity: $191 million
◽️ Grayscale: $27.7 million

The market is clearly on the rise.

5️⃣ Detroit: Taxes Payable in Crypto

Detroit will become the largest U.S. city to allow tax payments in cryptocurrency. The new service is set to launch by mid-2025.

6️⃣ Coinbase vs. Binance: Listing Scandal

Coinbase allegedly charges up to $300 million for token listings, while Binance claims it doesn’t charge listing fees if a project fails its due diligence.

7️⃣ Global Dollar Network

Kraken, Paxos, and Robinhood are launching the Global Dollar Network to promote stablecoins. The new USDG stablecoin will operate on Ethereum.

8️⃣ Circle Expands to Hong Kong

Circle plans to open an office in Hong Kong and is awaiting new stablecoin regulations to apply for a license.

9️⃣ Ethereum Foundation: Nearly $1 Billion in Reserves

The Ethereum Foundation revealed that 99.45% of its crypto reserves are in ETH, totaling $970 million. This ensures the foundation can continue supporting ecosystem development even during a bear market.

✅ Conclusion:

The crypto market continues to show strength: record Bitcoin highs, ETF inflows, and positive regulatory developments.

Stay tuned as we monitor the evolving economic and political landscape.

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📁 Arthur Hayes: Key Takeaways from His New Essay

In his latest essay, Arthur Hayes compares U.S. economic policy to Deng Xiaoping’s approach:

"It doesn’t matter whether a cat is black or white, as long as it catches mice."

According to Hayes, Trump is steering toward a model of “American Capitalism with Chinese Characteristics”,

where the primary goal is not ideology but maintaining power and stimulating growth.

📁 From Capitalism to Socialized Losses

The U.S. moved away from classic capitalism long ago.

Since the creation of the Federal Reserve in 1913, the wealthy have avoided taking responsibility for their losses.

Roosevelt partially reduced the class divide with his New Deal policies.

In modern times, Trump and Biden have taken it further, distributing direct payments to citizens through “stimmie” checks.

📁 QE for the Wealthy and the Middle Class

Hayes identifies two types of Quantitative Easing (QE).

Between 2008 and 2020, money primarily flowed into the financial sector, driving up asset prices without stimulating real economic growth.

During the COVID-19 pandemic, starting in 2020, a new era began — QE for the middle class.

Funds were distributed directly to people, accelerating economic growth: every $1 of debt created more than $1 of economic activity.

📁 Inflation and the Bondholder Revolt

Economic stimulus through “stimmie” checks led to rising inflation, which displeased bondholders.

The Fed raised interest rates, but the Treasury mitigated their impact by issuing short-term bonds.

This created conditions for further asset price increases, including BTC.

📁 Bitcoin on Its Way to $1 Million?

According to Hayes, Trump’s new administration will continue increasing debt to reindustrialize the economy.

This will create ideal conditions for cryptocurrencies.

Hayes predicts that Bitcoin could reach $1 million, given its limited supply and the growing money supply.

Key Points from the Essay:

◽️ U.S. economic policy increasingly mirrors the Chinese model.

◽️ QE for the poor stimulates the real economy.

◽️ Inflation and rising rates won’t halt debt expansion.

◽️ Bitcoin is the primary asset as the dollar weakens.

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🖥 Crypto Investment Market: $1.98 Billion Inflows Post-US Election

Following the US elections, crypto funds recorded a massive $1.98 billion inflow, marking the fifth consecutive week of growth.

As a result, global assets under management (AuM) reached an all-time high of $116 billion.

📊 Key Facts:

◽️ Bitcoin was the main beneficiary, attracting $1.8 billion. Total BTC inflows since the Fed’s first rate cut in September have reached $9 billion.

◽️ Ethereum had its best week since July, with $157 million in inflows, signaling a recovery in investor confidence.

◽️ Among altcoins, Solana ($3.9 million), Uniswap ($1 million), and Tron ($0.5 million) led the way.

Blockchain equities also attracted substantial investments, with $61 million in inflows.

📊 Regional Focus

Most inflows were concentrated in the US ($1.95 billion).

But Europe also contributed, with Switzerland ($23 million) and Germany ($20 million) leading the charge.

📊 What’s Next?

With macroeconomic support and political shifts in the US, the crypto market continues to gain momentum.

Investors are eyeing new heights, and global demand for digital assets remains strong.

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🔐 Public Key vs. Private Key: The Basics of Crypto Security

To understand how the security of cryptocurrency transactions is ensured, it’s essential to grasp the two key elements — public and private keys.

This cryptographic pair forms the foundation for the decentralized and secure transfer of digital assets.

Here's how they differ and why it matters👇

🔑 Public Key

A public key can be freely shared because security is ensured by the fact that only the owner of the private key can decrypt information encrypted with the public key.

◽️ Visibility: Publicly available, akin to an address for receiving funds.

◽️ Purpose: Used to create a public address that allows others to send funds to you.

◽️ Encryption: Encrypts data and verifies digital signatures.

◽️ Ownership: Indicates where funds can be sent.

◽️ Verification: Confirms signatures and addresses, ensuring authenticity.

🔑 Private Key

The private key is like your secret PIN code for your wallet. Losing the private key means losing access to your crypto assets forever, making its security essential.

◽️ Confidentiality: Kept secret and not shared.

◽️ Purpose: Signs transactions and grants access to funds.

◽️ Encryption: Decrypts data encrypted by the public key.

◽️ Control: Ensures access to funds and the right to execute transactions.

◽️ Verification: Authenticates transactions and authorizes them.

📌 Why Is This Important?

This asymmetric cryptography system enables:

1️⃣ Guaranteeing that only the private key owner can control funds, even if the wallet address is public.

2️⃣ Verifying transactions without a central intermediary, maintaining blockchain’s decentralized nature.

3️⃣ Creating unique digital signatures for each transaction, protecting the network from forgery and fraud.

These principles of asymmetric encryption, first proposed by Diffie and Hellman in the 1970s, are fundamental to blockchain security today.

Understanding the differences between public and private keys is essential for maintaining control over your assets.

Also, check out our post on P2P payments as the future of crypto transactions.

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📁 What Happened in the Cryptocurrency Market This Week?

The cryptocurrency market continues to surprise with new records and significant initiatives. Let’s take a look at what happened this week and what might influence future developments.

1️⃣ Bitcoin Surpasses Silver in Market Capitalization

Bitcoin continues to gain popularity and is now referred to as "digital gold," but its market cap is still only one-tenth that of gold. This was covered in a separate post.

2️⃣ Jerome Powell: The Fed Continues Cautious Policy Adjustment

The Chairman of the Federal Reserve, Jerome Powell, stated that the policy is gradually shifting to a more neutral position, but the economic situation does not require immediate rate cuts.

Powell noted that the labor market continues to cool down, and inflation is expected to keep decreasing.

3️⃣ US Senator Proposes Selling Fed's Gold Reserves to Buy Bitcoin

US Senator Cynthia Lummis proposed the idea of selling part of the Federal Reserve's gold reserves and using the proceeds to buy Bitcoin.

This statement supports the development of cryptocurrencies as "digital gold," attracting investors due to their growth and security.

4️⃣ New Twitter Account Under Elon Musk’s Leadership

In November 2024, the official Twitter account "Department of Government Efficiency" (DOGE) was created, actively supported by Elon Musk.

Its goal is to streamline the operations of the US government, reduce unnecessary spending, and eliminate excess regulations.

Musk stated that this will be a crucial step towards a more efficient government and economy.

5️⃣ Hong Kong Launches Virtual Asset Index

The Hong Kong Stock Exchange officially launched a virtual asset index, which includes Bitcoin and Ethereum.

This move strengthens Hong Kong’s position as a leading financial hub for cryptocurrencies and simplifies digital asset trading for investors.

6️⃣ Tether Launches Hadron Platform for Asset Tokenization

Tether announced the launch of the Hadron platform, designed to simplify the tokenization of various assets, including stocks, bonds, stablecoins, and loyalty points.

The platform supports multiple blockchains and second-layer solutions for Bitcoin, expanding opportunities for market participants.

7️⃣ Upbit Trading Volume Surpasses Two Largest South Korean Stock Markets

South Korean crypto exchange Upbit reported a trading volume of $1.56 billion, surpassing the combined trading volume of the KOSPI and KOSDAQ stock markets.

This highlights the growing interest in cryptocurrencies amidst stagnation in traditional markets.

8️⃣ MicroStrategy Purchases Another 27,200 BTC for $2.03 Billion

MicroStrategy announced the purchase of 27,200 Bitcoin for $2.03 billion.

The company now owns over 279,000 BTC, solidifying its position as the largest institutional holder of Bitcoin.

9️⃣ New Ethereum Consensus: Beam Chain

Ethereum Foundation researcher Justin Drake presented a proposal for a new consensus update called "Beam Chain," aimed at improving Ethereum’s performance, security, and scalability.

This update, expected in 2026, could be a key step in the development of Ethereum 3.0.

✅ Takeaway

The cryptocurrency market continues to show dynamic development with new initiatives and increasing interest from institutional investors.

These events could become important catalysts for further growth and strengthen the position of cryptocurrencies in the global market.

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