Bitcoin price stabilized on Thursday after retreating from recent highs. The tense US presidential election and rising interest rates have caused traders to shy away from cryptocurrencies. Cryptocurrency trading volumes were weak, reflecting increased risk aversion in the markets. Stock markets also saw overnight losses, which also affected investor sentiment in the currency market.
Most altcoins followed Bitcoin’s moves, but Solana saw a notable rise thanks to increased activity on its blockchain. This activity helped it outperform many of its peers in the market. In this tense environment, investors remain awaiting upcoming US economic data, which could influence market trends.
Bitcoin trades at $67,217 and returns to zero
Bitcoin traded at $67,217 on Thursday, up 0.55%. After falling to levels of $67,000, it lost all of its weekly gains. Bitcoin’s market share reached 57.5%, followed by Ethereum with a share of 13.2%. The total market cap of cryptocurrencies is approaching $2.03 trillion. This performance reflects the challenges facing Bitcoin amid current economic tensions. The inability to maintain the $70,000 level indicates increasing pressure in the market. Investors are closely monitoring market developments, as caution prevails.
Election Expectations Pressure Bitcoin Amid Price Volatility
Bitcoin initially rose due to increasing speculation that Donald Trump will win the 2024 election. Recent polls show Trump has a slight lead over Kamala Harris. Trump has promised to introduce more friendly regulations for cryptocurrencies if elected. His pro-crypto stance helped support the market during his previous election campaign. However, election tensions and current market prices are putting pressure on Bitcoin. Investors are awaiting the results of the election and their potential impact on financial policies. This situation increases uncertainty in the market, making it difficult for Bitcoin to maintain its gains.
Trump’s Economic Policies May Stir Inflationary Concerns
Trump’s macroeconomic policies are expected to be highly inflationary, meaning higher interest rates and a stronger dollar. This trend has pushed the dollar to three-month highs in recent sessions. In turn, this has negatively impacted risk-sensitive markets, which have been under significant pressure. Investors are closely monitoring the impact of these policies on financial markets and the economy as a whole.
The current tensions are increasing uncertainty, which calls for careful risk assessment. Market expectations are heading towards more volatility as a result of these economic dynamics. Markets will remain under pressure until there is clarity on future policies.
Slower rate cuts weigh on cryptocurrencies
Expectations of a slower pace of interest rate cuts by the Federal Reserve are weighing on speculative assets, such as cryptocurrencies. Higher interest rates reduce the liquidity available for investing in riskier assets. It has been shown that traders expect a smaller cut of 25 basis points in November. This expectation reflects market concerns about future interest rates policy.
The upcoming US PMI data, due later on Thursday, may provide further clues about the health of the economy. Investors are watching this data carefully, as it could impact the Fed’s decisions. Market uncertainty is increasing, which requires investors to analyze risks more carefully. Under these circumstances, cryptocurrencies are likely to remain under pressure. Continued rise in interest rates could push markets into more volatility, making price trends more difficult to predict.
Solana Rises Amid Increased Blockchain Activity and Memecoin Speculation
Solana has been a standout performer in crypto markets this week, rising 4.5% to $173,068, its highest level in three months. Coindesk attributed the price gains to increased activity on the Solana blockchain, particularly in AI-related meme tokens.
Cryptocurrency Prices: Ethereum Drops, Bitcoin and Altcoins Stabilize
Altcoins traded in a flat to lower range today, with limited movements. Ethereum, the world’s second-largest cryptocurrency, saw a 2.4% decline to $2,553.24. In contrast, ADA (Cardano) and XRP (Ripple) moved in a flat range with slight declines. DOGE, among the meme tokens, saw a slight increase of 1.2%. These market moves show a sense of anticipation and caution among investors. Altcoins are still under pressure, reflecting the prevailing uncertainty.
Investors are closely monitoring economic developments that could impact market trends. Also, the number of users recorded a significant jump, surpassing 8 million users, reflecting the growing interest in the platform. The increase in speculative positions on Solana also saw a significant increase this week, boosting market activity. In comparison, Solana trading increased by 8.4% this week, while Bitcoin decreased by 1.5%. These dynamics point to a shift in investor sentiment towards Solana, amid positive market growth expectations.
The US Securities and Exchange Commission (SEC) has given the green light to 11 Bitcoin ETF applications from prominent firms such as BlackRock, Fidelity, Invesco, and VanEck. This approval is a positive sign for Bitcoin trading, as ETFs are more widely understood and popular in the investment world than cryptocurrencies. For investors interested in cryptocurrencies, Bitcoin funds provide an easy way to participate in this market without the need for a complex understanding of blockchain technologies, mining, and decentralized exchanges.
By investing in a Bitcoin fund, investors can focus on trading assets they understand, without worrying about storage issues. This means they will not need to rely on weak storage devices or deal with the differences between “hot” and “cold” wallets. This move opens the way for more investors to enter the world of digital currencies in a safer and easier way, which may contribute to strengthening the Bitcoin market further.
