Bitcoin Breaks Out with 39% Gain in November: Are Altcoins Next?
November did not disappoint. As anticipated, Bitcoin smashed through its previous all-time high of $74,000, riding a wave of momentum all the way to $99,750. A breakthrough beyond $100,000 seems inevitable in December, with investors, corporations, nation-states, and sovereign wealth funds all poised to accumulate Bitcoin.
The regulatory clarity promised by the Trump administration has further bolstered confidence in Bitcoin as a high-quality store of value. This surge in confidence could propel Bitcoin rapidly toward or even beyond $120,000. While no guarantees exist in such a volatile market, current conditions indicate strong demand for Bitcoin, suggesting the rally may be far from over.
Bitcoin: A Global Treasury Asset
Trump’s promise to make Bitcoin a strategic reserve asset in the United States, along with the subsequent bill proposed by Senator Cynthia Lummis, has sparked a global race among nation-states to front-run the U.S. Russia, for instance, passed legislation in November classifying Bitcoin as property, making it suitable for settling international trade. This move is particularly significant given Russia’s position as a major energy exporter. By using Bitcoin to settle oil trade, Russia could bypass traditional financial systems and sanctions, potentially reshaping the global oil market.
Meanwhile, Surinamese presidential candidate Maya Parbhoe has pledged to dismantle the country’s current financial system and adopt a Bitcoin standard if elected. While Suriname’s economy might seem inconsequential, the country’s recently discovered oil reserves are expected to bring rapid wealth to the small South American nation. This could position Suriname as a pioneer in using Bitcoin for energy trade, setting an example for other resource-rich nations.
Brazil, the world’s eighth-largest economy, introduced legislation in November to establish a Bitcoin strategic reserve. If passed, Brazil could begin accumulating Bitcoin by spring 2025. With its vast oil and natural gas resources, Brazil’s adoption of Bitcoin could further cement the asset’s role in global energy markets, creating a domino effect as other nations follow suit.
Notably, Pennsylvania became the first U.S. state to propose legislation designating Bitcoin as a strategic reserve asset. According to Dennis Porter, head of the Satoshi Action Fund, who helped draft the bill, Pennsylvania is just one of several states expected to follow suit in 2025. If this trend continues, it could lead to a decentralized adoption of Bitcoin within the U.S., with states using it to attract investment and enhance fiscal stability. Such state-level adoption underscores the growing recognition of Bitcoin’s potential as a financial cornerstone.
What does all of this mean? An asset with a limited supply, such as Bitcoin, is bound to appreciate in value when met with insatiable demand. In essence, Bitcoin’s purchasing power is likely to increase, further solidifying its role as a global financial powerhouse and a key player in the evolving landscape of international trade.
Banks Are Beginning to See the Light
President Biden vetoed legislation in 2024 that would have allowed banks to custody Bitcoin and accept it as collateral for loans. However, the bill is expected to be reintroduced in the next Congress and signed into law by President Trump. This development could position Bitcoin as the premier form of collateral within the financial system.
Thanks to its open-source public blockchain, banks will face transparency in their operations, preventing the obfuscation of rehypothecation—the practice of lending out Bitcoin held in custody. This transparency significantly mitigates the risk of bank insolvency, making Bitcoin an attractive and reliable asset for financial institutions. Unlike traditional assets such as real estate, Bitcoin can be liquidated within minutes and without the substantial costs associated with selling property.
The ability to leverage Bitcoin without selling it offers individuals unprecedented financial flexibility. With Bitcoin’s compound annual growth rate of 40%, borrowing against it at interest rates of 5% or even 10% could empower holders to reinvest in Bitcoin or fund living expenses, enabling a lifestyle previously accessible only to the ultra-wealthy. Furthermore, this approach could accelerate Bitcoin adoption across the financial system, as individuals and institutions alike recognize its unique advantages as collateral.
Corporate Adoption Is Speeding Up
The playbook set in motion by MicroStrategy and its founder, Michael Saylor, has sparked a steady flow of corporations adopting the Bitcoin treasury strategy. Today, over 60 companies hold Bitcoin on their balance sheets, and this number is expected to accelerate.
In December, Microsoft—a company with $90 billion in cash reserves—will hold a shareholder vote on whether to adopt Bitcoin as its treasury reserve asset. Michael Saylor himself is expected to address Microsoft’s board at their request, offering insights on implementing this strategy. If approved, this move could mark a pivotal moment in corporate Bitcoin adoption, given Microsoft’s influence in the global business landscape.
The power of corporations to borrow at extremely low-interest rates is a key driver of this trend. With access to cheap capital, companies can acquire a deflationary asset like Bitcoin, effectively hedging against inflation while capitalizing on its long-term appreciation. This strategy not only protects corporate cash reserves but also positions companies to benefit from the compounding value of their holdings.
Corporate adoption of Bitcoin also paves the way for innovative applications, such as integrating Bitcoin into payroll systems, enabling employees to receive a portion of their salary in Bitcoin. Furthermore, the move toward Bitcoin adoption is expected to inspire smaller firms and startups to follow suit, creating a cascading effect across industries and regions.
This accelerating trend demonstrates the profound influence corporations can have on mainstream adoption. As more companies recognize Bitcoin’s strategic advantages, the asset is poised to become an integral part of global financial operations, further cementing its status as a transformative force in the 21st-century economy. Quite simply, nothing stops this train.
Altcoins Are Set to Outgain Bitcoin in the Coming Months
The phenomenon known as altcoin season appears to be upon the market. Several OG large-cap coins saw over 100% gains in November. These included Dogecoin, XRP, Cardano, Avalanche, and Polkadot, to name a few. Additionally, AI-focused projects like Render, AIOZ, Fetch.ai (FET), TAO, and Nosana experienced significant growth, fueled by a 4% drop in Bitcoin dominance from 61% down to 57%. While this decline is notable, it is still modest compared to past cycles.
Bitcoin dominance is now approaching a critical trendline established in January 2023, starting at 40% and climbing to 61%. A break below this trendline could signal a broader market shift, triggering a massive altcoin run. Historically, altcoin seasons last between 30 and 90 days, providing a window of opportunity for savvy investors to capitalize on outsized gains.
For those considering entering the altcoin market, the time to act is approaching. Allocating funds to established projects with strong fundamentals is a prudent strategy. Tokens with real-world utility, robust ecosystems, and innovative technology are likely to lead the pack in this next phase.
An effective strategy during altcoin season involves using profits to accumulate more Bitcoin. By leveraging the volatility and potential gains in altcoins, investors can enhance their overall Bitcoin holdings, aligning with long-term growth strategies.
In the coming weeks, I plan to release a video delving into Bitcoin dominance trends and providing insights on optimal altcoin allocation. For now, early preparation and research are key to maximizing opportunities in this dynamic market environment.
Bitcoin Dominance is about to test a two year uptrend – If the trend breaks the Altcoins should see massive gains
With Great Gains Comes Great Responsibility
As the crypto market continues to climb and expand, it’s easy to feel invincible—believing the gains will never end and that your chosen altcoins will lead to untold wealth. Social media influencers often exacerbate this by promoting their favorite coins with extravagant price predictions and so-called “supercycle” theories. However, it’s crucial to stay grounded and remember that the primary purpose of altcoin investment is to grow your Bitcoin holdings.
The volatility of the crypto market demands a clear profit-taking strategy. If a coin you’ve invested in achieves a 200% gain, consider taking action: withdraw your initial investment, allocate half of it to Bitcoin, and keep the other half in stablecoins. This approach not only secures your Bitcoin holdings but also ensures you have liquidity to re-enter the market when new opportunities arise.
Remember, emotions are the enemy of sound investment decisions. Develop and adhere to an exit strategy that prioritizes long-term growth over short-term excitement. For more insights on building a profit-taking strategy, check out my March blog titled Maximizing Your Bitcoin Holdings Through Altcoin Trading and my February post titled Layer In – Layer Out Crypto Trading Plan. By planning and executing with discipline, you can navigate the crypto market’s ups and downs with confidence and purpose.
“December Outlook: The Next Chapter in Crypto’s Journey”
As we wrap up November’s impressive gains and look to December, the crypto world is buzzing with momentum. Bitcoin’s journey is far from over, with adoption growing at all levels—nations, corporations, and even states are reshaping their financial strategies to position themselves for the future. This is a time of unprecedented opportunity for investors who stay informed and make strategic choices.
Bitcoin is not just a digital asset; it is becoming the cornerstone of a new financial paradigm. Its decentralized nature, scarcity, and resilience are qualities that make it uniquely suited to be the future of money. As more institutional players, countries, and companies embrace Bitcoin, its influence will only grow, solidifying its role as a global store of value and a hedge against economic uncertainties.
As we move into December, the potential for Bitcoin to break new ground and for altcoins to thrive is palpable. Remember to approach the market with a steady mind and a clear strategy. The peaks and valleys of the crypto market are part of the ride, but by prioritizing long-term growth and keeping an eye on fundamentals, you can make the most of this exciting time and find financial freedom.
All information provided is for educational purposes only. It is essential to conduct your own research before making any financial decisions. This is not intended as financial advice.
Links & Tutorials
Bitcoin Education Resources
Hope.com – Learn more about Bitcoin and how to use BTC to protect your wealth.
The Bitcoin Standard – Book by Saifedean Ammous – a must-read!
The Bitcoin Way – Go bankless! Bitcoin education and services to help you custody your Bitcoin safely and securely.
Swan Bitcoin – Bitcoin exchange, IRAs and institutional-grade custody solutions
River Financial – Bitcoin exchange and institutional-grade custody solutions
God Bless Bitcoin – Full Length Documentary
Freedom People Resources
People Pay – Accept Bitcoin payments for your business
Chainrecorder – Prove ownership immutably by recording your documents on the Bitcoin blockchain
U.S. Regulated Exchanges (Fiat Onramps)
Coinbase – Using Coinbase Advance Video
Kraken – Using Kraken Pro Video
KYC Credentials Outside the U.S.
Palau ID – Foreign residence to pass KYC on foreign exchanges.
KYC Exchanges that Accept Palau ID (Must Use VPN – Costa Rica, Columbia, Mexico, Panama)
No KYC Exchanges (Must Use VPN – Costa Rica, Columbia, Mexico, Panama)
DEXs (Decentralized Exchanges) – Best Wallet To Use
Jupiter – Video Solana Ecosystem – Phantom Wallet
Whales Market – Solana OTC Trade Desk – Phantom Wallet
Thorswap – Swap native assets cross-chain (BTC for ETH etc..) and a very unique decentralized Bitcoin lending platform. Works best with the XDefi Browser Wallet.
Decentralized Bitcoin lending platform. Thorswap Overview Video Loans On Thorswap Video
Osmosis – Cosmos Ecosystem – Rabby, Metamask
Spooky Swap -Fantom – Rabby, Metamask
Trader Joe – Avalanche Ecosystem – Rabby, Metamask
Crypto Market and Portfolio Tracking
CoinGecko for portfolio tracking and up-to-date prices
CoinMarketCap – Crypto Prices
Banter Bubbles – Crypto Prices – Social Sentiment
Trading View – Chart all Markets and trading pairs Tradingview Tutorial Video
Storage – Not your keys, Not your crypto!
Cold Storage Wallets (Secure Long-Term Storage of Your Crypto)
Cold Card (Bitcoin Only) – Video
Hot Wallets (Lower Security – interact with DAPPS and Smart Contracts)
XDefi Browser Wallet – Video1 Video 2
Warning-If you have a wallet and an NFT has been sent to your wallet that you did not mint or purchase.. NEVER click on it. Many have malicious code that can drain your wallet! – BE CAREFUL
Stay Free!
Kury
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