Volatility is expected in markets between #Trump and #Harris as the US election creates uncertainty in markets and investors monitor policy changes.
This week, #Bitcoin ( BTC ) and the crypto markets are gearing up for what could be the most volatile week of the year. With major U.S. economic events on the calendar, from election showdowns to key labor market and interest rate data, crypto investors are bracing for significant price swings that could shape portfolios as 2024 comes to a close. Bitcoin is trading just below $70,000, and historical trends suggest potential gains in the fourth quarter, but much depends on what unfolds in the coming days.
The US presidential election on Tuesday will be a pivotal moment as candidates Donald Trump and Kamala Harris face off in a tight race. Polls show Trump with a narrow lead, but uncertainty around the final outcome could lead to increased volatility in cryptocurrency markets. If the results are delayed or contested, Bitcoin could react strongly as investors seek safe haven assets amid potential economic policy changes. Analysts are expecting a tumultuous day with Bitcoin sentiment tied closely to the election results.
In addition to the election, new jobless claims data, a measure of the health of the U.S. labor market, arrives on Thursday. Last week’s figures showed a slight decline in jobless claims, but this week’s figures are expected to rise slightly. A rise in jobless claims could signal a slowing labor market, which could send investors looking more toward alternative assets like Bitcoin as a hedge against economic concerns. Higher jobless claims typically signal economic strain, making crypto assets more attractive.
The Federal Reserve’s upcoming interest rate decision also looms large for crypto markets. With inflation approaching the Fed’s 2% target, some analysts are speculating on the possibility of a rate cut to support growth. The Fed has previously cut interest rates by 50 basis points and could impose another 25 basis point cut, a move expected to be reflected in Thursday’s FOMC minutes. Fed Chair Jerome Powell’s comments will be closely watched for any indication of future policy direction. With a 99.9% chance of a rate cut, this meeting could set the stage for Bitcoin’s next move.
Analysts believe that Bitcoin is likely to continue its rise regardless of the election outcome. Spotonchain predicts that Bitcoin could reach $100,000 in 2024, as post-election market dynamics usually support a bull run. Historically, BTC has risen after the US elections, and analysts expect this trend to continue and Bitcoin to move even higher by the end of the year.
With Bitcoin trading steadily with small gains since the week opened, the stage is set for a potentially transformative few days in the cryptocurrency market.
