Nov 9, 2023: Bitcoin and Ether remained positive this week, exhibiting resilience amidst a surge in altcoins and high bond yields. The cryptocurrency market showed signs of increased risk appetite, with altcoins leading the way. Polygon and Chainlink posted substantial growth, while Solana maintained an over 85% monthly gain despite experiencing a slowdown.
Leverage in the market saw an uptick as Binance’s Tether earn product offered 13% annual yields, and GMX’s incentive program promised up to 75% annual yield on Ripple and Solana tokens. These high-yield offerings contributed to the increased risk appetite among investors.
Coinbase (NASDAQ:COIN) led the buying spree in Solana with a purchase of 2.2 million tokens from October 18 to November 6. This resulted in $11 million inflows last week alone. Chainlink also attracted $2 million inflows, while increased investments were observed in Polygon and Cardano.
Despite the hype around yield farming and hawkish comments from central banks, Bitcoin’s appeal remains strong due to high bond yields. The optimism for Bitcoin ETFs is also on the rise, driven by BlackRock (NYSE:BLK)’s spot BTC ETF proposal. Binance’s BTC annualized daily basis reached its highest level since June, indicating continued investor interest.
Futures markets are expecting the Federal Reserve to maintain steady rates, with CME data showing a 90% likelihood of a pause at the next policy-setting meeting in December.
The recent developments underscore the dynamic nature of the cryptocurrency market and the continued investor interest despite potential risks. As the market navigates through yield farming hype and central bank comments, Bitcoin and Ether continue to hold their ground amidst altcoin growth.
Source Courtesy: Investing.com