Major changes are expected in the cryptocurrency markets this week, especially because of the upcoming US presidential election and the Federal Reserve’s meeting.
Over the weekend, the crypto markets fell after a surge last week driven by Bitcoin, and more ups and downs are likely in the next few days.
The US presidential election on Tuesday will cause short-term fluctuations in the market. If Trump wins, it may be good for cryptocurrencies, while a win for Harris could have the opposite effect.
Besides the election, there will also be important economic reports released and a meeting of the Federal Reserve this week.
Economic Events Nov. 4 to 8
Last week, the crypto market dropped partly because of the latest Core PCE report, which raised concerns about the Federal Reserve’s plans to lower interest rates.
On Tuesday, we will get the October ISM Services PMI report. This report shows how businesses in the US services sector are doing. It is an important economic indicator that helps economists and analysts understand changes in the economy.
On Thursday, there will be reports about jobs and employment. These reports are also important for understanding the health of the job market and the overall economy.
Finally, on Friday, we will see the preliminary readings for the Michigan Consumer Sentiment Index and Consumer Inflation Expectations for November. These reports come from a monthly survey about how confident consumers feel and their views on long-term inflation in the US.
Key Events This Week:
— The Kobeissi Letter (@KobeissiLetter) November 3, 2024
1. U.S. Presidential Election – Tuesday
2. ISM Non-Manufacturing PMI data – Tuesday
3. Initial Jobless Claims data – Thursday
4. Fed Interest Rate Decision – Thursday
5. MI Consumer Sentiment data – Friday
6. ~15% of S&P 500 companies report earnings…
The Federal Reserve will announce its decision on interest rates this Thursday. Most analysts expect a cut of 0.25 percentage points, with the CME Fed Watch tool indicating a 98% chance of this happening.
According to the Kobeissi letter, this week is very busy because the U.S. presidential election will take place on Tuesday, November 5.
Bloomberg reported on November 4 that traders in various markets are reducing their risks and preparing for increased volatility. This comes after a decline in technology stocks and cryptocurrency over the past few days.
In the cryptocurrency market, traders have different opinions about the election outcome. The options market, which involves trading contracts based on future price movements, has shifted from being very optimistic to focusing more on hedging against potential risks.
Crypto Market Outlook
Markets fell over the weekend, with the total value dropping by about $50 billion to $2.4 trillion by Monday morning.
Bitcoin dropped to $67,570 on Sunday, its lowest point in just over a week. However, traders in Asia pushed the price back above $69,000 on Monday morning.
Ethereum fell even more, dropping to $2,400 before making a slight recovery. Altcoins have been declining for the past few days as the markets prepare for more ups and downs this week.
