Crypto Market Faces Correction; Justin Sun Rescues WLFI, XRP Surges | Weekly Recap

This week's crypto market experienced a significant correction led by Bitcoin's decline, while Justin Sun’s involvement helped revive World Liberty Financial (WLFI), and XRP emerged as a key player in the market's recovery.

Market Correction and Bitcoin's Dip

The cryptocurrency market faced a downturn as Bitcoin dropped below $98,000 after briefly surpassing the $99,000 mark. This triggered a widespread collapse in altcoins, leading to a 2.3% decrease in the global market cap. Liquidations surged, reaching $494 million by November 25, and the following day, the number soared to $553 million as Bitcoin fell to $92,000. On-chain analysis indicated that profit-taking was a key factor behind this pullback.

Bitcoin ETFs experienced significant outflows, starting with a $435 million net outflow at the beginning of the week, breaking a five-day inflow streak. The trend continued with an additional $122 million outflow before a partial recovery occurred with inflows of $103 million on November 27 and $320 million on November 28.

Justin Sun Revives WLFI Project

In an unexpected move, TRON founder Justin Sun injected $30 million into World Liberty Financial (WLFI), a struggling crypto project tied to U.S. President-elect Donald Trump. The project had seen a decline in sales despite Trump's promotional efforts. Sun's investment boosted the project and solidified his role as an advisor, helping the company surpass critical thresholds. As a result, the Trump family is expected to receive at least $15 million from Sun's purchase.

XRP Shines Amid Market Correction

While the overall market experienced a correction, XRP emerged as one of the biggest winners. The asset spiked to $1.95 on November 30, retesting its 2021 peak. XRP’s performance allowed it to surpass Binance Coin (BNB) in market capitalization, reaching a $100 billion cap for the first time since 2018. The asset closed the week with a 33% gain, further cementing its status as a leading cryptocurrency.

Traditional Firms Eye Bitcoin

Traditional companies continue to show strong interest in Bitcoin. MicroStrategy made another large purchase, acquiring 55,000 BTC for $5.4 billion, bringing its total holdings to 386,700 BTC. Additionally, video-sharing platform Rumble revealed plans to buy $20 million worth of Bitcoin, while Bitcoin mining firm Marathon procured $67 million in BTC. Reports also indicated that Metaplanet, a major publicly traded company, is looking to raise $62 million to acquire Bitcoin.

Global Regulatory Developments

Global efforts to regulate the cryptocurrency market continued this week. The U.K. Financial Conduct Authority aims to complete crypto regulations by 2026. In North Africa, Morocco is considering crypto regulations to support the growth of its industry, despite having banned cryptocurrencies seven years ago. Meanwhile, Brazil’s lawmakers proposed allocating 5% of the country’s treasury to Bitcoin purchases. Russia has also introduced a federal tax law that recognizes cryptocurrencies as taxable property.

In the U.S., a court of appeals overturned the Treasury’s sanction against Tornado Cash, ruling it exceeded the department's authority. Additionally, there are reports that former SEC Commissioner Paul Atkins is a leading contender to become the next SEC chair under Donald Trump.

Pump.fun Faces Live Stream Abuse

Pump.fun, a popular platform for crypto-related live streaming, faced challenges as multiple token deployers misused its live stream feature, even threatening suicide and engaging in other disturbing behavior. The platform responded by suspending its live stream feature indefinitely to address the issue. Despite this, Pump.fun’s monthly revenue reached a record high of $82.7 million, reflecting a 207% increase from October’s figures.

This week’s developments highlight the volatile and rapidly evolving nature of the cryptocurrency market, with regulatory movements, market corrections, and significant investment activity shaping the future landscape. Stay tuned for more updates as the market continues to unfold.