QCP Capitalis predicting increased volatility in the cryptocurrency market ahead of the upcoming US presidential elections. The company’s latest market analysis stated that the US Federal Reserve (Fed) has lowered interest rates by 50 basis points and plans to cut them twice more this year. It is also anticipated that interest rates will be cut four more times by 2025. However, the analysis emphasized that Fed Chair Jerome Powell has an uncertain stance on future interest rate cut rates and tempo.
Fed’s Interest Rate Decision and Markets’ Reaction
QCP Capital stated that investors are turning their attention to employment data to be announced in the upcoming period. It is thought that these data will play a decisive role in the Fed’s interest rate decisions. Since July 2022, the difference between US 2-year and 10-year bond yields has been recession indicator was in the opposite trend. However, recently this difference has increased to +8 basis points, creating an optimistic atmosphere in the markets. This shows that investors tend to turn to risky assets.
FOMC After the meeting, the S&P 500 index closed the day down despite attempting to break a new record. On the other hand, there were also important developments in the options markets after the meeting. Bitcoin $62,039‘s volatility is 19 basis points, Ethereum 
$2,433‘s volatility decreased by 18 basis points. Bitcoin rose from $ 59,000 to $ 62,000 after the meeting.
US Presidential Election Process and Expected Volatility in the Cryptocurrency Market
QCP Capital, US Presidential Elections It is predicted that there will be major fluctuations in the cryptocurrency market before the next FOMC meeting. In particular, it was emphasized that the elections will take place immediately after the next FOMC meeting, which will increase uncertainty in the markets. This situation, crypto moneyIt was stated that it could have significant impacts on traditional financial assets as well as on the electoral period. QCP Capital emphasized that investors should be prepared for possible fluctuations that will occur during and after the election period.
Considering the upcoming election process and economic uncertainties, markets are expected to be quite volatile in the coming days. Therefore, it is of great importance for investors to review their risk management strategies and follow market developments closely.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
