The cryptocurrency landscape is constantly evolving, shaped by regulatory changes, institutional adoption, and macroeconomic factors. This daily digest compiles the most significant developments impacting digital assets, from major city adoption plans to insightful analyst predictions.
Detroit to Become Largest U.S. City Accepting Cryptocurrency for Tax Payments
Starting mid-2025, Detroit will become the largest U.S. city to accept cryptocurrency payments for taxes and municipal fees through a secure platform managed by PayPal. Mayor Mike Duggan stated, "Detroit is building a technology-friendly environment that empowers residents and entrepreneurs. We're excited to be among the first major American cities exploring blockchain applications for civic services."
With approximately 630,000 residents, Detroit ranks as America's 26th most populous city, though it once stood as the fourth largest during the 1950s with nearly 2 million inhabitants. Currently, three states—Colorado, Utah, and Louisiana—accept cryptocurrency for state government payments.
JPMorgan Analysis: Trump Victory Could Boost Bitcoin and Gold Investments
Global investment bank JPMorgan released a report detailing how Donald Trump's presidential victory might stimulate investments in Bitcoin and gold through a "devaluation trade" strategy. This approach focuses on assets that typically retain value during currency devaluation periods, often triggered by inflation or expansive fiscal policies.
The report further suggests Bitcoin could see additional gains due to MicroStrategy's aggressive investment strategy, dubbed the "21/21 Plan." This initiative aims to raise $42 billion over three years, equally distributed between equity and fixed-income securities. Remarkably, MicroStrategy plans to invest $10 billion in Bitcoin during 2025 alone—roughly matching its cumulative purchases since mid-2020.
Continued Bitcoin Benefits from Election Outcome Expected
JPMorgan's analysis indicates Bitcoin will likely continue benefiting from the Republican presidential victory over the next eight weeks, echoing similar patterns observed after the 2016 election. While Bitcoin surged and gold declined immediately following Trump's win, both assets could receive support throughout 2025 due to the administration's policies.
The bank notes Trump's repeated support for the digital asset industry and potential tariff increases could ultimately benefit Bitcoin as traders seek hedges against currency devaluation and geopolitical uncertainties.
Pro-Crypto Republicans Secure House Seats Amid Ongoing Majority Battle
Two Republican candidates supporting cryptocurrency initiatives have won U.S. House seats, narrowing their party's path to maintaining majority control, though the final outcome remains undetermined.
Jeff Hurd won Colorado's 3rd Congressional District with 50.1% of votes (with 89% counted), while Scott Perry secured reelection in Pennsylvania's 10th District by defeating Democrat Janelle Stelson. During his tenure, Perry voted for the Financial Innovation and Technology for the 21st Century Act (FIT21), which received bipartisan House support and awaits Senate voting. According to Hurd's campaign website, the Republican intends to support "FIT21-like legislation" and advocates for "sensible regulation of advanced technologies like cryptocurrency."
Crypto Options Market Sees Profit-Taking as Election Bets Unwind
According to Greeks.live macro researcher Adam, despite strong Bitcoin and Ethereum rallies and optimistic market sentiment, the options market is experiencing significant profit-taking as election-related positions close. Bitcoin weekly options have dropped below 50% implied volatility (IV), with major terms showing noticeable declines.
Ethereum's IV decrease has been less pronounced due to today's substantial price increase. Large investors are already positioning for year-end and even next spring's market movements, with today's bulk transactions reaching $1.2 billion for BTC and $600 million for ETH, primarily through option sales—the main driver behind today's IV drop.
Analyst: Coinbase Premium Turns Positive, Signaling Renewed U.S. Bitcoin Demand
CryptoQuant Head of Research Julio Moreno noted: "Trump's victory has revived U.S. investor demand for Bitcoin, with the Coinbase premium turning positive for the first time since October 18." The Coinbase premium indicates increased buying interest, particularly from institutional investors conducting large transactions on the platform.
As further evidence of growing institutional demand, CME Bitcoin futures reached a record $13.15 billion in daily trading volume. According to K33 Head of Research Vetle Lunde, CME's 2024 Bitcoin futures average daily volume currently stands at $4.56 billion—even higher than the surge following FTX's November 2022 collapse. Additionally, average monthly open interest for CME Bitcoin futures reached a record $11.73 billion in just the first week of November.
Major Underground Banking Network Involving Cryptocurrency Trading Dismantled
On November 6, Sichuan Leshan police disclosed a major illegal operation case involving a cross-regional underground banking network spanning 13 provinces with implicated funds exceeding 38 billion yuan ($5.2 billion). Recently, the Leshan Intermediate Court sentenced three defendants to prison terms ranging from 2.5 to 13.5 years for illegal business operations and fraudulent VAT invoice issuance.
The case involved virtual currency transactions facilitating cross-border fund transfers, with approximately 20 million complex fund operation records. Nationwide, police have filed 37 cases and arrested 176 suspects, successfully dismantling the extensive network. Investigations and proceedings continue across various jurisdictions.
Former Binance CEO Reveals Offers for Controlling Stake Sale
In a post-election interview, former Binance CEO Changpeng Zhao reflected on his forced departure from the exchange and four-month prison term, during which he exercised, wrote a book, and discussed cryptocurrency with inmates.
Zhao stated: "I don't think I want to return as Binance CEO. I led the company for seven years. I enjoyed the work, though it was heavy. But I think that chapter has closed." He revealed receiving offers to sell his controlling stake in the exchange—which constitutes most of his estimated $53 billion net worth—but declined to identify potential buyers or disclose prices.
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Zhao added: "I'm not saying I'll hold these shares forever. I'm happy to review every offer, but so far I haven't taken action. I'm just a regular shareholder now." The former executive, who sports a Binance logo tattoo on his arm, claims his "criminal status" hasn't prevented business relationships. While refusing to comment on the U.S. election, he expressed satisfaction with X's development direction under Elon Musk's leadership.
Binance Tops Fortune's 2024 Asia Fintech Innovators List in Blockchain & Crypto Category
Binance has been selected for Fortune's inaugural "2024 Asia Fintech Innovators" list, ranking first in the "Blockchain & Crypto" category. The list showcases 60 of the most dynamic financial services companies in the world's fastest-growing region.
French Regulators Move to Ban Crypto Prediction Platform Polymarket
France's gambling regulator (ANJ) is preparing to ban access to crypto prediction platform Polymarket within the country. The platform allows users to place cryptocurrency bets on event probabilities and saw substantial trading volume during the U.S. presidential election, reaching $294 million on November 5 alone, with total betting volume exceeding $3.2 billion.
Sources indicate that although Polymarket operates using cryptocurrency, its essence remains gambling—considered illegal under French law. ANJ is reviewing the platform's compliance and plans to restrict French access through domain blocking. However, since Polymarket only requires a crypto wallet for registration, users could potentially bypass restrictions using VPNs.
Schneider Electric Suffers Ransomware Attack, Hackers Demand Monero
French multinational company Schneider Electric experienced a ransomware attack where hacking group "Hellcat" demanded a ransom equivalent to $125,000 in baguettes or privacy-focused cryptocurrency Monero. The group threatened to release 40GB of sensitive data stolen from the company unless paid.
The hackers announced their demands through anonymous social media accounts, claiming possession of critical customer and operational information. This marks Schneider Electric's third cyberattack in two years. The company confirmed investigating the incident, stating the compromised platform existed in an isolated environment with no impact on products or services. Analysts suggest the baguette demand was primarily a "marketing" tactic to increase the hackers' notoriety in the ransomware market.
Frequently Asked Questions
What does Detroit's cryptocurrency adoption mean for residents?
Starting mid-2025, Detroit residents can pay taxes and municipal fees using cryptocurrency through a PayPal-managed platform. This initiative positions Detroit as the largest U.S. city embracing digital assets for civic payments, potentially increasing convenience and modernization for residents.
How might Trump's presidency affect cryptocurrency regulations?
The new administration may create a more favorable regulatory environment, possibly including Bitcoin legislation that would establish it as a strategic reserve asset. Changes in SEC leadership could also lead to more crypto-friendly policies compared to the previous administration.
What signals increased institutional Bitcoin demand?
Key indicators include positive Coinbase premiums, record CME Bitcoin futures volumes, and growing open interest. These metrics suggest heightened institutional participation, particularly through regulated financial instruments rather than direct cryptocurrency purchases.
Why are underground banking networks incorporating cryptocurrency?
Cryptocurrencies enable faster cross-border transfers with potentially greater anonymity than traditional banking systems. However, this also attracts illegal operations seeking to circumvent financial regulations and oversight.
How do options market activities affect cryptocurrency prices?
Large-scale option trading, particularly bulk transactions involving puts or calls, can influence implied volatility and create momentum that affects spot prices. Market makers hedging their positions may amplify these effects through their trading activities.
What makes Monero attractive to ransomware attackers?
Monero's privacy features make transactions significantly more difficult to trace compared to Bitcoin or other transparent cryptocurrencies. This enhanced anonymity provides attackers with greater security when receiving illicit payments.
Market Alert: All investments involve risk. This content does not constitute personal investment advice and may not account for specific financial situations or objectives. Always conduct independent research and consider professional guidance before making investment decisions.