Hola folks!
Welcome back! A lot is happening in the global crypto market, with crypto enthusiasts keeping a close eye on the US election results and the upcoming US Federal Reserve meeting. The outcome of these two mega events will set the tone for crypto price movements in the coming few months.
In today’s newsletter, we bring you the ups and downs from the past week and how political and economic factors can impact the global crypto market in the coming months. Read on to learn more.
The crypto market experienced substantial turbulence this week, with nearly $350 million in liquidations as Bitcoin briefly dipped below $69,000 on November 3. In the lead-up to the US presidential election on November 5, traders have been gripped by uncertainty, causing heightened price volatility.
Bitcoin’s wild price swings over the past seven days began at $67,700 on October 28, rallied to a high of $73,300 on October 29, and then sharply retreated. Adding to the jitters, Bitcoin's volatility index surged to a three-month high, highlighting the nervous anticipation of election results and their potential impact on price movements.
With some analysts warning of a possible 10% swing based on the election outcome, the stage is set for a crucial and nerve-wracking week. On top of that, the FOMC’s Fed rate decision is expected this week, compounding market unpredictability and likely setting the tone for the coming months.
Altcoins haven’t been spared from the market turbulence, facing mounting pressure and fears of a deeper downturn before a true recovery. Historical patterns suggest that altcoin markets often undergo a final shakeout phase before experiencing substantial gains. As the possibility of this final correction looms, the outlook remains mixed, with cautious optimism that 2025 could bring a broader altcoin resurgence.
Meanwhile, regional dynamics, particularly in South Korea, are playing a unique role in shaping market sentiment. The BTC premium in South Korean exchanges persisted into the end of October, driven by strong local demand and a regulatory landscape that encourages crypto investment. By October 31, this premium continued to signal bullish sentiment, reflecting how localized factors can influence global crypto valuation.
November also brings a series of impactful token unlocks, with $2.68 billion worth of assets set to be released into the market. High-profile projects like Memecoin, Aptos, Arbitrum, Avalanche, and Optimism are slated for major unlocks, testing the market’s resilience as billions in value are set to become tradable. This influx could spark significant price movement, adding to the already high level of volatility expected.
On the security front, October saw crypto-related losses totaling $129.6 million, underscoring the ongoing risks in the space. Major incidents included the $50 million hack of Radiant Capital and other high-profile attacks.
As the market braces for a week filled with pivotal events, from US election results to the Fed’s interest rate announcement, all eyes are on how these developments will shape the near-term future of crypto. Prepare for a whirlwind of market activity, with plenty of opportunities—and risks—lying ahead.
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BTC $68,802 ⏫ 0.83%
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SOL $161.72 ⏬ 8.48%
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AVAX $23.37 ⏬ 9.45%
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ARB $0.4798 ⏬ 7.38%%
(All data here is as of 3.01 p.m., 4 November 2024)
Before we conclude, here’s a quick look at some important news from around the crypto world.
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Hong Kong Exchanges and Clearing (HKEX) will launch a virtual asset index series on Nov.15, the company announced on Monday. The index will be administered and calculated by CCData, a UK-registered benchmark administrator and virtual asset data and index provider. Read more here.
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Solana’s DEX ecosystem has reached a notable milestone, with its weekly trading volume reaching 168% of Ethereum’s mainnet DEX volume, a record high for this metric. This represents a big shift from the start of the year when Solana’s DEX volume was just 48.85% of Ethereum’s. Read more here
That’s it for now. Thanks for sticking around.
See you later, folks! 👋
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