05/11/2024
2 Major Events Set to Shake Up the Crypto Market This Week
This week, the crypto market is bracing for high volatility as two major events unfold, both with the potential to significantly impact the prices of crypto assets.
After a weekend slowdown following a week marked by a Bitcoin rally and surges across various altcoins, the market is gearing up for a series of impactful developments. Alongside these major events, a few other minor factors are also expected to contribute to fluctuations in crypto prices.
Here are the two key events likely to drive volatility in the market this week:
1. The U.S. Presidential Election
The U.S. presidential election on November 5th is a landmark event with significant implications for the crypto market and its future direction. During the campaign, cryptocurrency emerged as a key issue, with only one candidate showing full support for the industry. Donald Trump, who has earned the nickname "the Crypto Candidate," has promised to establish a strategic Bitcoin reserve if elected, positioning the U.S. as a leader in global cryptocurrency adoption. His potential victory is seen as a bullish signal for the crypto industry.
On the other hand, a win for Kamala Harris is perceived more cautiously due to the mixed messages that have come from her and the Biden administration regarding crypto policy. The election’s outcome could strongly influence the future regulatory and developmental landscape of the crypto industry in the United States.
2. The Federal Reserve Policy Meeting
The Federal Reserve’s policy decision on Thursday is another major event this week, with analysts widely expecting a 0.25% rate cut. According to the CME FedWatch tool, there is a 98% probability of this cut, which reflects efforts to manage inflation—a factor that often directly impacts investor behavior in the crypto market.
Other Notable Events Contributing to Market Volatility
Additional factors this week include the release of October’s ISM Services PMI report, reflecting the health of the U.S. services sector, and November’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations, both of which provide insights into the economic outlook and consumer confidence.
What to Expect
Ahead of this eventful week, the crypto market has experienced price corrections. Over the weekend, the total market capitalization fell by approximately $50 billion, settling around $2.4 trillion on Monday morning. Currently, Bitcoin is trading at $68,562, showing a modest 0.6% increase over the past 24 hours.
As these events unfold, the crypto market is likely to see considerable movement, with each event setting the stage for potential price shifts in the coming days.
