Bitcoin started the week on a positive note, going up by 0.6% and hitting $69,018.9 early Monday. This slight bump came after a tough weekend of losses, which got many traders worried. What’s interesting is the 42% spike in trading volume over the past day—an indicator that people are paying attention and ready to jump in. But what’s behind all this back-and-forth?
With the U.S. presidential election just around the corner, the crypto market is feeling the effects of political tension. The close race between Donald Trump and Kamala Harris is adding uncertainty, and investors are responding. Trump, known for his crypto-friendly stance, has generally encouraged investor optimism, while Harris has pushed for more regulation, though her policies remain unclear. Betting markets like Polymarket recently showed Harris’ odds rising from 35% to 43%, while Trump’s dropped from 66% to 57%.
This shift in expectations has added to Bitcoin’s price fluctuations.
While the election has everyone guessing, the Federal Reserve’s next move is also weighing on the market. The Fed is set to cut rates by 25 basis points in November, following a bigger 50-point cut in September. Traders are keeping an eye on what the Fed signals next. Inflation has eased a bit, with September’s rate at 2.1%, down from 2.3% in August. Wage growth also slowed down, with a modest 0.8% rise last quarter—the lowest since 2021. Since the Fed’s meeting is just a day after the election, any decisions could stir things up in the crypto world.
If inflation continues to cool while the economy stays steady, the Fed might consider more rate cuts. Currently, markets see a 94% chance of a 25-point rate cut in November and a 70% chance of another in December. If the Fed hints at additional cuts, Bitcoin could benefit. However, the election outcome could disrupt any positive momentum.
As election day and the Fed’s decisions approach, Bitcoin faces a volatile road ahead where every development could sway the market.
What do you think will happen to Bitcoin’s price after the election and Fed decision? Share your thoughts.
DeFi Development Corp. (NASDAQ: DFDV), a company focused on building a Solana treasury strategy, has…
Eigen Labs, the blockchain company behind the EigenLayer (EIGEN) protocol that pioneered the crypto restaking…
Over the past year, there’s been a massive shift in Bitcoin’s ownership whereinthe institutional players…
ReserveOne, a newly formed firm inspired by the proposed U.S. strategic Bitcoin Reserve, has announced…
The recent filing of the Truth Social Crypto Blue-Chip ETF has sparked renewed interest in…
What happens when retail traders get smart? The house fights back. In this context, one…
