Forbes Advisor India: August 2025 Edition

Cryptocurrency markets have been on a remarkable surge, with the total value of all cryptocurrencies reaching $2.94 trillion as of November 13, 2024. Increased investment into Bitcoin exchange-traded funds and the recent U.S. presidential election results are seen as key drivers fueling this optimistic market trend. The Federal Reserve’s decision to lower interest rates has also contributed to the positive momentum in the crypto sphere.

Crypto Markets’ Impressive Growth

According to data from CoinMarketCap, as of November 13, 2024, the total market value of all cryptocurrencies stands at $2.94 trillion, reflecting a 0.57% increase from the previous day. The total trading volume in the crypto market over the past 24 hours is $349.04 billion, marking a 31.22% rise. Decentralized Finance (DeFi) accounts for $17.33 billion of this volume, which represents 4.97% of the total crypto market activity in the last 24 hours. Stablecoins make up a significant portion of the trading volume, with $316.84 billion traded, equating to 90.77% of the total crypto market volume over the same period.

The recent surge in the cryptocurrency market has been notably influenced by Donald Trump’s victory in the 2024 U.S. presidential election. Bitcoin has repeatedly broken its previous record highs in the days following the election results. Over the past month, Bitcoin has seen an increase of 40.24%, Ethereum has grown by 32.70%, stablecoins have experienced a 3.06% rise, and other tokens have increased by 32.35% as of November 13, 2024.

Recent figures indicate that Bitcoin (BTC) has performed exceptionally well, reaching a new all-time peak of $89,956 on November 12, 2024. As of November 13, 2024, BTC is trading at $88,608 with a market capitalization of $1.75 trillion. Ethereum (ETH) has also seen a significant increase, rising approximately 35.40% in the past week to reach $3,286. Market sentiment currently reflects a state of “extreme greed.”

Meme coins, such as Dogecoin, have outperformed Bitcoin in recent days. This is being fueled by an altcoin rally driven by reduced regulatory uncertainty following Donald Trump’s victory in the U.S. presidential election. DOGE experienced a surge of nearly 80% over the last few days.

The substantial increase in cryptocurrency prices in recent days has triggered significant liquidations in the cryptocurrency derivatives market. Traders who bet against the market (“shorts”) were caught off guard, leading to rapid liquidations of leveraged positions.

According to Cointelegraph, over $634 million worth of cryptocurrency positions were liquidated across the crypto market as of November 12, with $203 million wiped out. On the same day, $121 million worth of short BTC leveraged positions were also liquidated. More than 210,940 traders were affected by liquidations, with the largest single liquidation event involving BTC/USDT on the OKX crypto exchange, totaling $15.5 million.

Past Notable Crypto Market Shifts

Earlier this year, certain occurrences have had a positive impact on the crypto market, including the U.S. Federal Reserve’s recent decision to decrease rates by 0.5% and the Bank of Japan’s decision to maintain consistent interest rates.

On September 18, the Federal Reserve made public that they would be reducing their standard interest rate by 0.5%, which was the U.S. central bank’s first rate cut in four years. The overall market capitalization of cryptocurrencies increased reasonably by approximately 4% after the rate cut, coming to $2.1 trillion as of Sept. 18, 2024.

In general, a rate cut refers to a reduction in the federal interest rate. Lowering borrowing costs, sustaining job creation, boosting economic expansion, and raising stock values are all effects of it. Additionally, it has an impact on the cryptocurrency space by boosting liquidity and risk appetite as investors hunt for higher returns and invest in digital assets like cryptocurrencies as well as positive market sentiment.

The Bank of Japan (BoJ) chose to keep the interest rate constant on September 20 despite the widespread global instability. An increase in the yen caused investors to unwind holdings in risky assets, including cryptocurrencies, at that time. The BoJ concluded its negative interest rate policy in March and raised short-term rates to 0.25% in July. The U.S. Securities and Exchange Commission gave its blessing to Bitcoin Spot Exchange Traded Funds (ETFs) and Ethereum ETFs, which poured considerable amounts of capital into the market and improved general opinion.

Performance Review of Key Cryptocurrencies

As we navigate the intricacies of the digital age, cryptocurrencies like Bitcoin, Ethereum, and others are progressively obtaining prominence, transforming financial transactions, investment strategies, and economic structures. Join us as we examine the most recent events, trends, and insights that are influencing the dynamic world of cryptocurrency today.

Bitcoin (BTC):

Price: $88,427
Market Capitalization: $1.75 trillion

Following Donald Trump’s victory in the U.S. presidential election, Bitcoin has shown continued rise. It has surpassed its all-time high multiple times in the last couple of days, hitting the highest of $89,915. As of Nov. 13, 2024, it is stable at $88,476, with an increase of 27.04% in the last seven days. Bitcoin’s stability and widespread adoption make it a preferred choice for investors seeking long-term value and stability in the volatile crypto landscape.

Ethereum (ETH):

Price: $3,280
Market Capitalization: $394.88 billion

Ethereum saw an increase after being stable at around $2,600 levels for a considerable time, indicating a significant jump of 34.46% in the last week as of November 13, 2024. According to CoinMarketCap, Ethereum’s technical rating is 50% bullish and 50% bearish. Ethereum continues to be a frontrunner in developing decentralized applications and smart contracts, attracting developers and investors alike.

USDT (Tether USD):

Price: $1.00
Market Capitalization: $124.10 billion

Tether USD, the primary stablecoin, displays price stability, with a slight rise of 0.8% in the last seven days as of November 13, 2024. Despite the bearish sentiment, USDT continues to be an essential element of the cryptocurrency ecosystem, providing liquidity and stability to traders and investors.

Solana (SOL):

Price: $214.50
Market Capitalization: $100.52 billion

As of November 13, 2024, Solana has seen a surge, expanding by 27.54% in the previous week. CoinMarketCap indicates that the technical rating is strongly positive. Ninety-six thousand, seven hundred and twenty users rated the sentiment: 86% are positive, while 14% are negative. This surge helped SOL move above Binance on the list of cryptocurrencies.

Binance Coin (BNB):

Price: $628.66
Market Capitalization: $90.65 billion

As of November 13, 2024, Binance Coin is slightly down by 2.31% in the last 24 hours and up by 11.09% in the previous seven days, maintaining an 81% bullish technical rating. SOL outperformed BNB with a more significant increase, and Binance coin moved to the 5th position on the list. BNB continues to demonstrate its resilience and attractiveness to traders and investors. Binance Coin’s ecosystem and utility within the Binance exchange contribute to its ongoing popularity and firm performance in the cryptocurrency market.

Note: The price and market capitalization is as of Nov. 13, 2024 via CoinMarketCap

What’s Next for the Cryptocurrency Space?

BTC has jumped above $89,000 over the last few days, signaling the beginning of a considerable uptrend after its previous high point. Simultaneously, ETH has climbed above $3,200, and SOL has jumped to $210, with widespread gains observed throughout altcoins. Over the past 24 hours, total market liquidation has exceeded $600 million, with around $300 million each for long and short positions. The market has displayed strong sentiment, with a significant rise in positive momentum.

According to Ryan Lee, chief analyst at Bitget Research, funding rates for contracts are a key element to watch. “With the increase in BTC, there has been considerable short liquidation in the derivatives market. The funding rates for long positions in BTC, ETH, and SOL have begun to deviate from their normal value, annualized at 10%. A continuous rise in these rates along with costs would indicate increasing market leverage, raising the chance of considerable market variations,” Lee stated.

Another factor to keep an eye on is the comparative profits of BTC and altcoins. While BTC passed the $89,000 threshold, there has yet to be a distinct return in BTC exchange rates for ETH, SOL, and other tokens. This shows that BTC is drawing liquidity from the market, signifying a tightening of market funds. Due to liquidity constraints, this may result in extreme volatility in derivatives markets.

Grzegorz Drozdz, a market analyst at Conotoxia, believes that prudence and avoiding wishful thinking are essential when analyzing the cryptocurrency market. The increase in stablecoin capitalization suggests a flow of new capital, although it is still less than in 2022. The market was also significantly impacted by the early-year introduction of bitcoin ETFs. ETFs bought more than $27 billion in BTC, increasing their ownership to 3.5% of all bitcoin. Following the election, ETFs made an additional $3.4 billion in purchases, confirming the increased interest of financial institutions in this market.

He continued by stating that analysts at Conotoxia are recommending that the Bitcoin price may rise by the end of the year, possibly even reaching the $100,000 mark, thanks to the continuous entrance of new money into the market and substantial investments. However, a breakthrough at this level is more likely to occur in the first half of 2025.

In summary, while the recent rise in cryptocurrency prices indicates promise for potential rewards, investors must tread carefully and remain aware of the market’s inherent instability. Approaching cryptocurrency investment with a well-considered strategy, sound judgment, and a methodical approach to risk management is essential.

Guidance on Cryptocurrency Investing

Investing in cryptocurrency can be financially rewarding, but it involves risks. Below is a complete guide on how to invest in crypto:

Understand the Risks: Due to the extreme volatility of the cryptocurrency market, investing carries risks. Prices can fluctuate greatly and rapidly, resulting in large profits or losses.

Assess Financial Situation: Evaluate your financial condition and risk tolerance before investing. Determine how much you can afford to invest without affecting your financial stability.

Research Cryptocurrencies: Perform a comprehensive study on various cryptocurrencies. Find out about their technology, use cases, development teams, and market dynamics. Focus on well-established cryptocurrencies like Bitcoin and Ethereum and promising altcoins.

Keep Up with the Latest News: Track trustworthy sources, forums, and social media platforms to stay up to date on market trends, regulatory changes, and technological advancements in the cryptocurrency space.

Choose a Reliable Exchange: Choose a reliable cryptocurrency exchange for buying, selling, and trading cryptocurrencies. Look for exchanges with a solid reputation, strong security measures, and a user-friendly interface. Make sure it is FIU-compliant.

Secure Your Investments: Prioritize security measures to protect your cryptocurrency investments. Use hardware wallets or cold storage solutions to store your cryptocurrencies offline and protect them from hacking or theft.

Diversify Your Portfolio: Reduce risk by allocating your investments among various cryptocurrencies. Diversification can help reduce losses if one cryptocurrency underperforms while others succeed.

Set Investment Goals: Define your investment goals and time horizon. Determine whether you’re investing for the short or long term and establish realistic expectations for returns.

Start Small: Start with modest investments to test the waters and learn about cryptocurrency trading. Avoid making large investments until you feel at ease navigating the market and comprehending its dynamics.

Monitor Your Investments: Routinely monitor the performance of your cryptocurrency investments. Keep abreast of market developments and be prepared to modify your investment strategy as required.

Seek Professional Advice: If you’re new to investing or unsure about your decisions, you may want to speak with a financial counselor or cryptocurrency expert. A professional can provide tailored guidance depending on your financial objectives and risk profile.

Stay Patient and Disciplined: Patience and discipline are essential for cryptocurrency investing. Stick to your investment strategy and avoid making hasty judgments based on temporary market swings.

Step-by-Step Procedure:

Here’s a step-by-step guide on how to invest in cryptocurrency:

Step 1: Understand and research the current crypto market and its risks.

Step 2: Choose the amount you’re willing to invest.

Step 3: Choose the cryptocurrency you want to invest in.

Step 4: Select a crypto exchange platform for your investment.

Step 5: Create your account through a crypto exchange platform.

Step 6: Complete the verification and know your customer (KYC) process.

Step 7: Fund your crypto account, and you’re ready to trade your desired crypto coin.

Step 8: Select a crypto wallet to store your cryptocurrency. There are multiple digital wallets, such as mobile wallets, hardware wallets, desktop wallets, and online wallets. Learn more about the best crypto wallets in India.

Step 9: Secure your wallet.

Step 10: Hold and then sell or buy to gain profit as deemed appropriate.

In Conclusion

Investing in cryptocurrency may be a profitable endeavor, but it’s important to proceed cautiously and carefully. You can efficiently navigate the crypto market and potentially benefit from its growth prospects by being aware of the risks, doing in-depth research, and adhering to a well-planned investment strategy. Remember to stay informed, patient, and attentive to protecting your investments.

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