Crypto SWOT: Bitcoin reached a new record high following Trump’s presidential win. Will it keep climbing?

Strengths

Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Cronos, rising 53.51%.
Bitcoin jumped to a record high as global markets responded to Donald Trump’s victory over Kamala Harris in the U.S. presidential election. Bitcoin jumped 9% as early results showed Trump barreling toward a win.

Blackrock’s spot Bitcoin ETF has surpassed the size of its gold fund amid record demand for ETFs that invest in the original cryptocurrency. The iShares Bitcoin Trust ETF surpassed the $33 billion iShares Gold Trust in total assets, reaching $34.3 billion after a record inflow of $1.1 billion on Thursday, writes Bloomberg.

Weaknesses

Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Kaia, down 11.25%.
U.S. exchange-traded funds investing in Bitcoin recorded their highest daily net outflow to date as markets braced for Election Day. The group of 12 funds managed by the likes of BlackRock and Fidelity shed $579.5 million on Monday, November 4, according to Bloomberg.
QNB, one of Turkey’s largest banks, abruptly ended its crypto asset service operations as of November 7, reports Bloomberg. According to a post on its website, the firm will no longer be accepting any new customers.

Opportunities

The government of Indonesia is allowing businesses to invest in crypto in a new Commodity Futures Trading Regulatory Agency. Under previous rules, only individuals are allowed to invest in digital currencies and the regulation reiterates that crypto is only allowed as an investment asset and cannot be used as payment in transactions, writes Bloomberg.
They crypto industry poured millions of dollars into the presidential and congressional races, but its most salient election victory is likely to be the departure of U.S. SEC chair Gary Gensler, explains Bloomberg. President Donald Trump’s decisive victory all but ensures a pullback on crypto-related enforcement once he take office.
UBS developed a piloted blockchain-based, multi-currency payment solution with UBS Digital Cash. The solution aims to increase efficiency, transparency, and to enable programmability, writes Bloomberg.

Threats

An exploiter managed to steal a significant number of tokens from crypto casino Metawin’s Ethereum and Solana hot wallets by exploiting the protocol’s frictionless withdrawal system, Bloomberg reports. Blockchain sleuth ZachXBT pegged the amount stolen to over $4 million with 115 theft addresses tied to the exploit.
The CEO of WondeFi, a publicly listed crypto holding company that owns one of Canada’s largest crypto exchanges, has been safely released after he was kidnapped, according to Bloomberg.
Coinbase Global executives and directors recently adopted trading plans to sell more than $900 million of shares of the crypto-trading platform, writes Bloomberg. Three Coinbase executives and two directors will sell as many as five million shares.

Frank E. Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

The S&P/TSX Global Gold Index is an international benchmark tracking the world's leading gold companies with the intent to provide an investable representative index of publicly-traded international gold companies. The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.

Holdings as a percentage of net assets as of 6/30/07: Jiangxi Copper (China Region Opportunity Fund 1.74%); Silvercorp Metals Inc. (World Precious Minerals Fund 2.78%, Global Resources Fund 0.89%, China Region Opportunity Fund 2.42%); Gold Fields Ltd. (Gold Shares Fund 6.05%, World Precious Minerals Fund 2.58%, Global Resources Fund 0.39%); Sino Gold Mining Ltd. (Gold Shares Fund 1.03%, World Precious Minerals Fund 0.58%, China Region Opportunity Fund 0.27%); Anglogold Ashanti (0.0%); Dynasty Gold (0.0%).

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

opinion

Crypto SWOT: Bitcoin reached a new record high following Trump’s presidential win. Will it keep climbing?

By Frank E. Holmes

Kitco Commentaries
Opinions, Ideas and Markets Talk

Frank E. Holmes

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opinion

Crypto SWOT: Bitcoin reached a new record high following Trump’s presidential win. Will it keep climbing?

By Frank E. Holmes

Kitco CommentariesOpinions, Ideas and Markets Talk

Frank E. Holmes

Tags:

Kitco Commentaries
Opinions, Ideas and Markets Talk