The crypto market endured a volatile first week of November, briefly gaining approximately $100 billion following the U.S. midterm elections before surrendering those gains amid a global technology stock sell-off.
Key Takeaways
- Bitcoin fell 2.5% as crypto markets erased $100 billion in post-election gains amid a global sell-off.
- XRP dropped over 7%, while NEAR plunged 15%, highlighting widespread weakness across major altcoins.
- Zcash (ZEC) and tron (TRX) gained 3%, while gold-backed tokens rose over 4%, signaling potential defensive demand.
Post-Election Rally Gives Way to Global Market Sell-Off
The crypto economy endured a volatile first week of November, with its market capitalization rising by $100 billion following the U.S. midterm elections before surrendering those gains amid a broader sell-off across global financial markets.
Market data show the crypto economy began the week with a market capitalization barely above $2.7 trillion before bearish sentiment ahead of Election Day pushed it down to $2.67 trillion. However, as initial U.S. election results pointed to a shift in power in Washington, the crypto market staged a surprise rally, led by bitcoin, which surged from just above $75,000 to $81,000. By Nov. 5, the crypto economys total market capitalization had approached the $2.79 trillion mark.
However, as reports surfaced of proposed Democratic restrictions on crypto and data centers, technology stocks, especially those tied to artificial intelligence (AI), plunged, erasing trillions in market value. By Friday, Nov. 6, the total crypto market capitalization had dropped back below $2.64 trillion, highlighting the weeks severe volatility.
Bitcoin, which briefly dipped below $75,000 for the first time since late August, played a central role in the crypto markets sharp swings. Despite the price fluctuations, the top cryptocurrency ended the week down 2.5%, falling from $77,845 to $75,877. A similar pattern emerged across several other digital assets, which posted impressive gains during the post-election rally only to surrender them following the technology stock sell-off.
Zcash, Tron and Gold-Backed Tokens Defy Market Downturn
Some digital assets, including XRP, suffered even steeper losses than bitcoin. Market data show that after briefly surpassing $1.32, XRP reversed course and continued sliding into Saturday, when it touched a multi-week low of $1.15. The downturn left XRP down more than 7% over the seven-day period.
Hyperliquid (HYPE) also recorded steep losses, falling more than 12%, while XLM and BCH declined approximately 10% and 12%, respectively. NEAR suffered an even sharper drop of 15%, while WLFI shed 7% during the period.
Nevertheless, a handful of digital assets outperformed the broader crypto market, including tron (TRX) and the privacy coin zcash (ZEC). Market data show both cryptocurrencies gained approximately 3%, while gold-backed tokens XAUT and PAXG rose 4.6% and 4.1%, respectively.
Blue Wave, Red Week — Week in Review
This editorial is from this weeks edition of the newsletter Week in Review, sent to subscribers on Friday. Subscribe to…
Blue Wave, Red Week — Week in Review
This editorial is from this weeks edition of the newsletter Week in Review, sent to subscribers on Friday. Subscribe to…
Blue Wave, Red Week — Week in Review
This editorial is from this weeks edition of the newsletter Week in Review, sent to subscribers on Friday. Subscribe to…
About the author
WRITTEN BYTerence ZimwaraAuthor/Writer
Terence Zimwara is an award-winning journalist and author specializing in the intersection of African macroeconomics and digital finance.