Bitcoin and Ether remained positive this week, showing resilience amid 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 significant gains, while Solana maintained a monthly gain of over 85% despite a slowdown.
Leverage in the market increased as Binance‘s Tether earn product offered 13% annual returns and GMX’s incentive program promised up to 75% annual returns on Ripple and Solana tokens. These high-yield offerings contributed to increased risk appetite among investors.
Coinbase (NASDAQ:COIN) led the Solana buying spree, purchasing 2.2 million tokens from October 18 to November 6. This resulted in an inflow of $11 million in the last week alone. Chainlink also attracted $2 million in inflows, while Polygon and Cardano also saw increased investment.
Despite the yield farming hype and hawkish comments from central banks, bitcoin’s appeal remains strong due to high bond yields. Optimism for bitcoin ETFs is also on the rise, driven by BlackRock’s (NYSE:BLK) spot BTC ETF proposal. Binance’s BTC annualized daily volume hit its highest level since June, indicating continued investor interest.
Futures markets expect the Federal Reserve to keep rates steady, with CME data showing a 90% probability of a pause at the next policy-setting meeting in December.
Recent developments underscore the dynamic nature of the cryptocurrency market and 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.
