Crypto Markets Prepare for Election Volatility, November Token Unlocking and Peanut Memecoins: November 4

Crypto Markets Prepare for Election Volatility, November Token Unlocking and Peanut Memecoins: November 4

At 8:00 AM UTC+8, the price of Bitcoin was down -0.86% to $69,203, and Ethereum was down -1.46% to $2,476. The 24-hour long/short ratio in the futures market was almost balanced, with long positions at 48.7% and short positions at 51.3%. The Fear and Greed Index, or an index that measures market sentiment, showed greed levels at 74 yesterday and declined to 70 today, still keeping the cryptocurrency market in greed territory.

What became a hot topic in the cryptocurrency community

1. The United States begins its 2024 presidential election on Tuesday, with major polls showing a close race between Trump and Harris.

2. Secured loans in Tether’s reserves totaled $6.72 billion, fully backed by liquid assets.

3. Ethereum’s net supply has increased by 11,609 coins over the past 7 days.

4. At Polymarket, Trump’s odds of winning the presidency have fallen to 56.6%, while Harris’ odds have risen to 43.6%.

5. U.S. Bitcoin spot ETFs recorded net inflows totaling $2.22 billion this week.

Cryptocurrency Fear & Greed Index | Source: alternative.me

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Learn more: Bitcoin $100K Prediction Sets GRASS Airdrop Record, Cryptocurrency Surges on Robinhood: October 31

The cryptocurrency market is busy with major developments. Traders and investors are bracing for a number of things, including significant token lifting this month, increased volatility in BTC and ETH as election results approach, and a surge in Peanut-themed memecoins on Solana. Each of these events has the potential to significantly impact the market, so it’s important to understand the details and prepare for what comes next.

BTC and ETH Volatility Surges Ahead of Election Results

BTC/USDT price chart | Source: KuCoin

Bitcoin and Ethereum are currently experiencing a surge in volatility due to uncertainty surrounding the outcome of the upcoming election. Nick Forster, founder of Derive.xyz, reported that Bitcoin futures volatility jumped to 80.3% from its previous level of 72.2%. Ethereum also saw an increase in volatility, rising from 75.4% to 82.9%. This sharp increase indicates that traders are adjusting their positions and preparing for the potential impact.

ETH/USDT price chart | Source: KuCoin

The upcoming election raises the possibility of significant price movements. Forster suggests there is a 2/3 chance of a major price move on election night, and sees Bitcoin’s expected price range as between -9% and +9.9%. Meanwhile, Ethereum is expected to move within a rather wide range of -9.3% to +10.2%. While these expected changes indicate increased market risk, they can also represent opportunities for those prepared to manage volatility well.

Despite the potential for sharp price movements, market sentiment appears to be tilted to the bullish. The total number of outstanding contracts for BTC call options is 1,179 contracts, while for put options is 885 contracts. This suggests that many traders are expecting a positive outcome after the election. Traders’ choices show confidence that the political outcome could ultimately have a favorable impact on cryptocurrencies, at least for now.

$2.6 billion worth of tokens to be unlocked in November

According to Tokenomist, November is a key month for the unlocking of locked crypto assets, with a whopping $2.68 billion worth of tokens set to be unlocked. This includes what’s called a “cliff unlock,” where more than $900 million is released at once, and about $1.7 billion is released gradually over a month.

MEME token unlock progress | Source: Tokenomist

Token unlocking is important because it can put significant pressure on token prices, especially when large quantities of tokens enter the market. Notable projects releasing tokens this month include Memecoin (MEME), Aptos (APT), Arbitrum (ARB), and Avalanche (AVAX). Memecoin alone will have 3.45 billion tokens unlocked, valued at $37.8 million. These unlocks come in two forms: cliff unlocks and the gradual unlocking of over 10 million tokens per day. This could increase supply by about $117,000 per day and could cause price volatility, especially as Memecoin’s price remains down 81% from its peak earlier this year.

Arbitrum, a well-known Ethereum layer-2 solution, will also release 92.65 million tokens worth $45 million. These tokens will be allocated to early investors, team members, and advisors. This follows a major unwind in March, when Arbitrum unlocked $2.32 billion worth of tokens. This release may impact the price of the token if supply exceeds current market demand, especially if early holders choose to cash out.

Unlocking tokens could have a ripple effect throughout the market. While the increase in supply may put downward pressure on the price, it presents an opportunity for those looking to accumulate tokens at a discount. Investors will need to monitor how this release plays out and whether new demand is enough to offset the increased supply.

Peanut meme coins shake up the Solana DeFi market

Solana’s Peanut the Squirrel meme coin. Source: Dexscreener

In the DeFi market, in particular, Solana, a squirrel named “Peanut” appeared and created a new craze. This viral sensation inspired memecoin creators to flood the market with Peanut-themed tokens, causing notable market activity and price fluctuations.

Peanut’s unexpected popularity led to the creation of several Peanut-themed tokens on the Solana network. Among them, “Peanut the Squirrel” (PNUT) had a particularly large impact, recording nearly $300 million in volume and over 200,000 transactions. PNUT’s market capitalization peaked at $120 million, but has since adjusted and is now at $100 million. The trading volume and rapid price fluctuations show that these kinds of niche, culture-driven tokens can become popular overnight.

Another Peanuts-themed token reached a market capitalization of $80 million and trading volume exceeded $110 million. This shows that this trend is not limited to a single blockchain, and suggests that the appeal of memecoins, especially those linked to pop culture or viral stories, remains strong.

Adding to this meme coin craze, raccoon-themed tokens have also appeared, themed after Peanuts’ raccoon companion. Named “First Convicted Raccoon” (FRED), the token had nearly 150,000 transactions and $83 million in trading volume, but had a market capitalization of just $8.2 million. Although small in scale, FRED’s rapid spread shows how quickly a meme-driven project can gain market attention. Although its long-term viability is uncertain.

These memecoins are more than just a fad, they reflect how quickly stories can drive market action in the cryptocurrency world. While most of these tokens may not have long-term value, they represent the speculative side of DeFi, where community, pop culture, and fun play an important role.

Read more: Solana memecoins to watch in 2024

conclusion

The cryptocurrency market is currently in a phase of high activity and uncertainty. Volatility of major assets BTC and ETH is increasing due to the upcoming election results, and billions of dollars of tokens are set to be unlocked during November, presenting both opportunities and risks for investors. Meanwhile, the surge of Peanuts-themed memecoins on Solana shows that the speculative and culture-driven side of cryptocurrencies is still alive and well.

Staying abreast of these dynamic developments is essential for traders and investors. Each event—elections, token unlocks, and memecoin craze—has the potential to quickly change market conditions. As always in cryptocurrency, being prepared and informed is the key to navigating these unpredictable situations.