- Rate cuts & U.S. election may delay altseason, impacting crypto traders’ strategies.
- Crypto market poised for volatility amid Fed’s rate decision and election results.
- Bitcoin dominance rises as altcoins struggle with macroeconomic pressures and political uncertainty.
A week of potential volatility lies ahead for the cryptocurrency market. Traders are closely monitoring the upcoming interest rate decision by the Federal Reserve and the results of the U.S. presidential election.
After dropping below the key resistance of $70,000 at the end of October, bitcoin remains under pressure, while altcoins have been even more bearish.
Market Braces for Federal Reserve Announcement
The Federal Reserve is set to reveal its latest interest rate decision on Thursday, November 7. Data from the CME Group shows a high probability of 99.7% of a 25 basis points rate cut.
Such a move is anticipated to impact crypto prices. In addition, the crypto sector has been highly sensitive to macroeconomic developments, aligning its movements with traditional financial markets like the S&P 500.
The U.S. election voting is set to happen on November 5, with preliminary results expected around November 6. Historically, the financial markets have reacted to political developments. Changes in leadership often trigger shifts in investor sentiment.
Implications for Crypto Traders
The volatility index has shown a 65% rise year-to-date. Moreover, this indicates sustained market volatility even as stock indices hit record highs. This trend suggests that crypto traders could face heightened risk and swift market swings around the election period. Historically, periods of political transition have led to significant market fluctuations, affecting both Bitcoin and altcoins.
The price trend of Bitcoin in recent weeks has mirrored the broader worries in the economy and politics. Despite some minor setbacks, analysts think that Bitcoin will likely continue to rise and could possibly hit $100,000 by the end of the year.
Challenges for Altcoin Market
While Bitcoin dominance has risen, surpassing 60%, the altcoin market remains subdued. The anticipated approval of spot Ether ETFs and interest in altcoins like Solana (SOL), XRP, and Litecoin (LTC) have not translated into the bullish momentum seen in past cycles.
Analysts suggest that the current macro environment, combined with election uncertainties and potential rate cuts, might delay the anticipated altseason.
The post Crypto Market on Edge: Will the Fed Decision and U.S. Election Fuel Volatility? appeared first on Crypto News Land.
Earn more CFN tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://cryptoforum.news0
CFN Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed