Boosting Crypto Markets: A Newfound Momentum

By Omkar Godbole (All times ET unless indicated otherwise) The cryptocurrency market has received a significant triple boost, propelling bitcoin toward a crucial test of a former support zone that has turned into a resistance zone above $106,000. The outcome of this test could determine the direction of the next major market movement. The first catalyst was a post on Truth Social by President Donald Trump, announcing a potential $2,000 dividend for low-income Americans, which would be funded by trade tariff revenues. The crypto community quickly speculated that this payout could come in the form of direct stimulus checks, similar to those issued during the Covid-19 pandemic that fueled unprecedented altcoin rallies. However, Treasury Secretary Scott Bessent suggested that the dividend might be implemented through less direct measures, such as tax cuts, which could be less bullish for the market. The second boost came from the U.S. Senate's decision to advance a measure that would likely fund the government through January, ending a record-long shutdown that has kept key economic data under wraps. Nevertheless, as ING notes, the real challenge lies in whether Congress can maintain momentum over the next 48 hours. Lastly, financial conditions have improved, with the key banking sector spread reversing its late October spike. Meanwhile, the dollar index's rally has stalled after hitting resistance at the August high of 100.25. Collectively, these catalysts could help bitcoin break through the $106,000-$107,000 resistance zone and revive demand for the 11 U.S.-listed spot ETFs, which have experienced $2.8 billion in outflows over the past four weeks. On the other hand, failure to penetrate the resistance zone could solidify a bearish trend, paving the way for a deeper market sell-off. In the altcoin market, XRP has seen significant activity, with five spot ETFs tied to the payments-focused token appearing on the DTCC list, raising hopes for imminent approval. Privacy coins, such as ZEC, have also performed well, rising to $630 from Friday's drop to $500. In other news, Acting CFTC Chair Caroline Pham announced that the agency is working with registered exchanges to launch leveraged spot crypto products as early as next month. In traditional markets, futures tied to the S&P 500 are up 0.5%, indicating a risk-on sentiment. Stay alert! Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today What to Watch For a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Token Events For a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Conferences For a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Market Movements Bitcoin Stats Technical Analysis Crypto Equities Crypto Treasury Companies ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors While You Were Sleeping