After a significant strengthening at the beginning of the week, the cryptocurrency market has lost some of its gains, and currently, the BTC token is trading at 88000.00 ( 10.1%), ETH is at 3050.00 (–3.7%), USDT is around 1.0003 (–0.03%), SOL is at 210.00 ( 1.2%), and BNB is at 620.00 (–1.2%). By the end of the week, the total market capitalization amounted to 2.92T dollars, and BTC’s share was 59.8%.

Positive dynamics developed after the victory in the US presidential election of the Republican Party representative Donald Trump, known for his loyalty to crypto assets. It allowed BTC to renew historical highs, consolidating above 93400.00. Market participants hope that the new head of the White House will fulfill at least some of the election promises and most importantly, replace the head of the US Securities and Exchange Commission (SEC), Gary Gensler, with a more loyal official who can develop clear rules for the interaction of the digital sector with the authorities. According to experts, it could be the commissioner of the department, Mark Ueda, who has repeatedly criticized the “hawkish” policy towards financial and technology companies. This week, the recognition of BTC as a state reserve asset began locally. Pennsylvania Republican legislator Mike Cabell introduced a bill to the state House of Representatives allowing the treasury to invest up to 10.0% of the budget in the first cryptocurrency, calling this measure necessary to protect funds during a period of economic instability and citing as an example large investment companies BlackRock and Fidelity, which are turning to BTC as a protective asset.

However, the market’s upward momentum was short-lived as monetary factors became relevant from midweek, with the US Fed likely to abandon its “dovish” rhetoric. According to October data, the consumer price index rose to 2.6% YoY from 2.4%, while the producer price index rose to 2.4% from 1.9%, reflecting signs that inflation pressures were building faster than expected. Then, US Fed Chairman Jerome Powell said that the ongoing economic recovery, a robust labor market, and strong consumer price inflation allowed the agency to exercise caution in deciding on further easing. It led investors to expect a refusal of the –25 basis point interest rate adjustment in December and a slower decline in borrowing costs next year. It resulted in the first outflow from digital ETFs since the US presidential election. On Thursday, Bitcoin ETFs lost 400.7M dollars, while Ethereum ETFs lost 3.2M dollars. Experts’ opinions on the further dynamics of the world’s first cryptocurrency differ, as some fear a stronger correction to the 55000.00 region. However, most hope the price will reach 100000.00 by the beginning of next year.

Next week, most major digital assets may move to consolidation or resume upward dynamics.