The Crypto Market with Simon Peters, Analyst in Cryptoassets
Cryptoasset markets have experienced a downturn following Friday's weaker-than-expected employment data, as well as potential risk reduction by traders and investors due to uncertainty surrounding the presidential elections.
Polls so far show a tight race, with both candidates still battling for the undecided states.
While attention has focused on who will become the next president of the USA, American voters will also determine this week which parties will control each chamber of Congress.
If control of the House of Representatives and the Senate is divided, any new initiatives related to the U.S. crypto industry could be more challenging to pass.
However, a Republican or Democratic victory, coupled with a presidential win from the same party, could mean less resistance and, in turn, be positive for the future, as both presidential candidates have expressed their support for the U.S. cryptoasset and blockchain industry.
In addition to the U.S. presidential elections, markets will be watching the Federal Reserve meeting and the decision on interest rates.
Currently, markets anticipate a 25 basis point cut in the federal funds rate at Thursday's meeting.
However, the main focus will be on the subsequent press conference by the Fed Chair, where markets will seek more information about the Fed's next move regarding interest rates.
According to CME, markets currently expect another 25 basis point cut in the federal funds rate at the December meeting. Any language or suggestion from Powell that deviates from the current market expectations could cause volatility in both cryptoasset markets and traditional markets.