Bitcoin price is falling again. However, it may turn out that we are close to the end of this stagnation. The next week will be a breakthrough.
Bitcoin price waiting for the elections
Bitcoin price is falling: today 1 BTC costs USD 68,590, which is 1.6% less than yesterday. Ether has lost 2.2% of its value and can now be purchased for $2,450. However, it is possible that a big jump in cryptocurrency valuations is ahead of us.
First, let’s go back 4 years. The 2020 presidential elections took place on November 3. On November 1, the market situation looked like this:
It points to November 1 for a reason. Today is the equivalent of this date – the US elections will take place on November 5, so we are only one day away from them. The situation today is similar – there are no significant increases.
What started after Americans elected a new president? Boom!
Of course, now a lot will depend on who will become the head of state (in 2020 it was not that important, because the topic of cryptocurrencies did not appear in the campaign). If Donald Trump wins, we will see a strong boom on the chart. Kamala Harris’ success may lead to a correction, but it should not erase the gains. In the long term, there is no indication that 2025 will be different from 2021.
The Fed will decide
But that’s not all. Two days after the election, on November 7, the Fed will once again decide on interest rates. There are many indications that it will reduce them by 25 bp – according to Fed Watch Tool data, the probability of this scenario is estimated at nearly 99%. This will mean a continuation of the policy adopted at the previous meeting, when rates were cut by 50 basis points. This is very good news for risky assets, because such a policy of the US central bank will increase liquidity in the markets and thus fuel growth on cryptocurrency charts.
As you can see, next week may prove to be a breakthrough for cryptocurrency investors. The presidential election and the Fed meeting should be interpreted by the market as positive news and fuel the main part of the bull market. Additionally, bitcoin’s dominance has reached 60%, so we may be close to the start of the “altcoin season”.
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