There will be important political and macroeconomic developments this week due to the impact of the US election results and Fed interest rate cut expectations. As the race between Donald Trump and Kamala Harris becomes close again, crypto investors remain cautious ahead of the latest results. Bitcoin (BTC) 
$68,287 Altcoins faced more selling pressure last weekend as the price continued to hover below the $70,000 level. Therefore, the overall crypto market is bracing for volatility and liquidity pressure this week.
How Will FOMC and US Elections Affect the Crypto Market?
Bitcoin closed below the $70,000 resistance last week, failing to reach a new all-time high. Altcoins have also remained under strong selling pressure and crypto investors remain cautious ahead of the upcoming FOMC meeting and US election results.
Fed Interest Rate Decision and Election Results
On Thursday, November 7, the Federal Reserve will announce its latest interest rate decision. According to CME data, the probability of a 25 basis point cut in the interest rate is predicted to be 99.7%. On the other hand, voting in the US elections will begin on November 5 and the results are expected to be announced around November 6. These developments are likely to have an impact on the broader financial and crypto markets.
“The outcome of the US presidential election could have positive effects on the S&P 500.” – The Kobeissi Letter
Expected Volatility in Bitcoin and Altcoins
In recent weeks, the crypto market has been reacting to political developments and macroeconomic factors in the United States. The crypto market, which is likely to follow the movement trend of the S&P 500 index, is prepared for increased volatility this week.
“Political uncertainties may increase market fluctuations.” – The Kobeissi Letter
According to The Kobeissi Letter, the S&P 500 index often records lower returns in the pre-election period when the ruling party is likely to lose. However, looking at historical data, it is stated that the S&P 500 index provides an average positive return of 11.3% during election years.
Crypto investors, and the crypto market in general, may face similar volatility around the US elections. In the past, it has been observed that significant bull markets started after election periods, and it is predicted that the price of Bitcoin may reach $ 100,000 by the end of the year.
Preparing for a Parabolic Rally for Bitcoin
According to analysts, this rally, which may start after the election period, is likely to be sustainable. Bitcoin’s increasing trend may continue and push the price to $100,000 levels. If it repeats similar performance cycles, Bitcoin’s price could see a parabolic rise to $200,000 and above.
While the volatility and liquidity pressures that may be experienced in the crypto market may pose risks for investors, it also appears to contain opportunities if market fluctuations are managed correctly. Investors’ close monitoring of macroeconomic and political developments will play an important role in making informed decisions.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
