3 Factors Expected to Influence Crypto Markets in the Upcoming Volatile Week
Crypto markets brace for volatility this week due to the US election and key economic reports, impacting Bitcoin and altcoin prices.
Following a Bitcoin-driven rally last week, crypto markets experienced a retreat over the weekend. As the US presidential election approaches, more volatility is anticipated in the coming days.
- A potential victory for Donald Trump may positively impact crypto prices, while a win for Kamala Harris could have the opposite effect.
- The election is just one of several economic factors that will influence market dynamics this week.
Key Economic Events
Several important economic reports are scheduled for release from November 4 to 8, which could sway market sentiment.
- The latest Core PCE report last week raised concerns over the Federal Reserve's rate-cut outlook.
- On Tuesday, the ISM Services PMI report will be released, providing insights into the US services sector's business conditions.
- Thursday will bring jobs and employment reports, crucial for assessing labor market health.
- The Federal Reserve will announce its interest rate decision on Thursday, with analysts predicting a 0.25 basis point cut.
- On Friday, the Michigan Consumer Sentiment Index and Consumer Inflation Expectations will be published, reflecting consumer confidence and inflation outlook.
Key Events This Week
- U.S. Presidential Election – Tuesday
- ISM Non-Manufacturing PMI Data – Tuesday
- Initial Jobless Claims Data – Thursday
- Fed Interest Rate Decision – Thursday
- Michigan Consumer Sentiment Data – Friday
- Earnings Reports from ~15% of S&P 500 Companies
Crypto Market Outlook
The crypto market saw a decline, with total market capitalization dropping by approximately $50 billion to $2.4 trillion.
- Bitcoin fell to $67,570 on Sunday, marking its lowest point in over a week, but saw a recovery back above $69,000 on Monday.
- Ethereum experienced a sharper decline, dropping to $2,400 before showing slight recovery.
- Altcoins have also been in decline as traders brace for more volatility this week.
As the US presidential election and significant economic reports loom, traders are preparing for a week of heightened volatility in the crypto markets. The outcomes of these events could have lasting impacts on market dynamics.
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