In this week's crypto market recap for November 17th, SOL reached a high of $68 while BTC fell to approximately $35k and Ethereum (ETH) dropped to around $1,950.
Market Recap (Nov 17th) Insights
- With a positive inflation report, cryptos and equities rebound from losses.
- Cathie Wood (ARK) endorses Solana's network as its upward trend persists.
- Avalanche (AVAX) announces partnership with J.P Morgan and Apollo Global.
- Image of a fake BlackRock XRP ETF filing on X (Twitter) spooked crypto markets.
Bitcoin and Ethereum experienced an initial decline earlier in the week, but managed to recover some of their losses as the week progressed. This drop occurred on Tuesday, coinciding with a surge in equity markets following a positive inflation report. However, both cryptocurrencies quickly rebounded and regained their previous levels. Additionally, ETH received a boost on Thursday when BlackRock submitted its S-1 filing for a spot ether ETF with the SEC.
The Securities and Exchange Commission (SEC) had set response deadlines for three bitcoin ETF applicants, namely Franklin Templeton, GlobalX, and Hashdex. However, Hashdex's application faced a delay before the deadline on Friday morning. Market commentators anticipate that the other two applicants will also experience delays. At the time of writing, on Friday, the price of BTC was hovering around the $36k mark.
Cathie Wood Pumps Solana
Meanwhile, Solana's upward trajectory continued, with the network gaining approximately 8% over the course of the week contributing to its remarkable surge of around 150% in the last 30 days. Over the past year, SOL has surged by more than 325%. As of Friday morning, the price of SOL was hovering around $55.
This growth was further highlighted by ARK Invest CEO Cathie Wood, who praised Solana's speed and cost-effectiveness in a CNBC interview. Over the past 30 days, Solana has seen a remarkable rally of around 150%, and its value has surged by more than 325% over the past year.
In a recent CNBC interview, Cathie Wood, the CEO of Ark Invest and a long-time supporter of Bitcoin, expressed her views on Solana. Wood highlighted that in the past, Ethereum was considered faster and more affordable than Bitcoin, which led to its popularity. However, she believes that Solana surpasses even Ethereum in terms of speed and cost-effectiveness.
Additionally, the network's activity has been steadily increasing, with the total value locked (TVL) approaching $600 million this week, nearly doubling compared to the previous month
Positive Inflation Data Rallied Equities
Equity markets experience a surge as inflation eases in October: The release of inflation data, which was lower than anticipated, on Tuesday sparked a robust rally in equities. Both the S&P 500 and Nasdaq witnessed gains of over 2% on that day. This encouraging inflation data indicates that we might be approaching the conclusion of the Federal Reserve's cycle of raising interest rates, which has led to rates reaching a 22-year peak.
Equities experienced a significant boost this week due to the release of inflation data that was lower than anticipated. The S&P 500 and Nasdaq both saw gains of over 2% on Tuesday, while treasury yields continued to decline across the curve, with short-term treasuries being particularly affected. The Consumer Price Index (CPI) for October remained unchanged from the previous month, with a year-over-year increase of 3.2%.
The latest data has raised hopes that the persistent high prices are finally starting to cool down. Additionally, these numbers suggest that the Federal Reserve's cycle of raising interest rates may be coming to an end, as rates have reached their highest point in 22 years. Just a month ago, there was a 65% chance of a rate hike at the Fed's final meeting in December, but now that possibility has been completely ruled out.
However, experts warn that the Fed may not immediately begin cutting rates in order to avoid repeating the mistakes of the past. The futures market is now predicting rate cuts as early as May 2024, shifting its previous expectations from June 2024. As of Friday morning, the S&P 500 has increased by approximately 2.2% and the Nasdaq has gained around 2.15% this week.
AVAX Announces Partnerships
During this week's Singapore Fintech Festival, Avalanche revealed a collaboration with J.P. Morgan and Apollo Global Management. The aim of this partnership, under the supervision of the Singapore Monetary Authority's (MAS) Project Guardian, is to incorporate blockchain technology into portfolio management. By utilizing blockchain smart contracts and tokenization, the initiative intends to streamline and automate the process of portfolio management.
The objective of the group is to utilize the LayerZero network in order to establish a connection between the Onyx blockchain platform, which is operated by J.P. Morgan and Apollo, and a permissioned Avalanche Evergreen Subnet. This connection will enable the facilitation of subscriptions, redemptions, and rebalances for tokenized WisdomTree funds.
The market responded favorably to this news, as evidenced by a 15% increase in the value of Avalanche's native token, AVAX, following the announcement. Over the course of the past seven days, AVAX has experienced a significant surge of more than 50%.
BlackRock "did not" file for XRP ETF
The price of XRP experienced a surge from approximately $0.65 to $0.75 earlier this week due to a fraudulent filing for an XRP ETF under BlackRock's name. However, the gains were short-lived as the reports confirmed the falsification, causing the price of XRP to quickly retrace. As of Friday, the price of XRP is trading back around the $0.60 range.