Altcoin
Will The Crypto Market Crash Tomorrow On US Election Day 2024?
The crypto market entered a crucial week with eyes on crucial scheduled events like the US Presidential election 2024 and the FOMC interest rate cut decision. Notably, the market participants are bracing for highly volatile trading this week, with experts supporting the anticipation with historical trends. However, with soaring expectations of volatile trading, some also grew concerned over a potential market crash on the day of the election.
Will the Crypto Market Crash On US Election Day?
According to a recent report by The Kobeissi Letter on the X platform, the financial market is poised to witness highly volatile trading, irrespective of who wins the US election. Having said that, the crypto market investors are also appearing to stay on the sideline, seeking more clarity on the future of the market.
Notably, crypto has been one of the major issues on the US Presidential Election 2024 this year. Donald Trump has actively backed Bitcoin and the crypto market ahead of the election, with Kamala Harris also showcasing a strong interest in the technology sector.
Besides, Bitcoin and other top altcoins also showcase a positive performance after the US presidential election. Considering that, the market anticipates a similar picture this year, with Bitcoin potentially hitting a new ATH after the election.
US Election & Its Impact On The Crypto Market
The US political landscape has recently been closely associated with the cryptocurrency industry. Donald Trump’s recent backing of Bitcoin, with a flurry of politicians revealing their interest in the digital assets space, is expected the industry to witness strong gains after the election.
Meanwhile, the US election would provide cues on the future crypto market regulations. The US SEC and CFTC have different approaches when it comes to regulating digital assets. Besides, the US SEC and its Chair Gary Gensler have faced heavy backlash from the crypto community, with many blaming the agency for their regulatory overreach.
Having said that, the investors are now eyeing towards the upcoming election. Notably, many anticipate a change in administration to foster innovation in the digital assets space. Simultaneously, the investors are also expecting a similar stance by the Democrats as well, if Kamala Harris secures a victory in the election.
Previously, former US President Donald Trump publicly announced that he would fire Gary Gensler on his first day at the White House. This has sparked significant optimism among crypto market investors, who deems Gensler as an anti-crypto regulator.
On the other hand, traders have also lauded Donald Trump’s pledge to make Bitcoin a strategic reserve for the US. This development, if it happens, could significantly push the BTC price higher in the coming days. Besides, his vocal support towards the digital assets sector and calling himself “Crypto President” has bolstered optimism among investors.
How US Election Impact the Stock Market?
The Kobeissi Letter has recently shared an analysis of the election and historical stock market performance. Now, as the crypto market and stocks move in tandem lately, let’s take a look at the analysis and see how it could impact digital assets.
As the election approaches, analysts are scrutinizing the potential impact on the stock market and crypto performance. The Kobeissi Letter’s analysis reveals significant differences in stock market returns before and after Election Day, dating back to 1920.
Here are some of the important findings from the analysis:
- Election Year Trends: 83% of election years saw positive returns leading up to Election Day, while only 67% had positive returns afterward.
- Stock Performance: Stocks perform 4.2% better on average in the six months preceding an election compared to non-election years, but 1.4% worse in the six months following.
- Economic Influence: The economy plays a crucial role in election outcomes, with only one instance of an incumbent party winning during a recession year since 1948.
- Market Volatility: Elevated volatility is expected regardless of the election outcome, with the VIX index up 65% year-to-date.
Historically, the S&P 500 has averaged an 11.3% return during election years since 1928, with 83% of years yielding positive performance. As the crypto market moves in tandem with stocks, investors are bracing for potential fluctuations. With gold prices surging and the VIX index elevated, traders are poised for a profitable ride amid the uncertainty.
What’s Next For Bitcoin And Altcoins?
Bitcoin is poised for volatile trading ahead of the election and the top altcoins are also expected to follow suit. Currently, BTC price traded near the $69K mark, after touching a high of $73,577.21 in the last seven days.
A recent Matrixport report showed that as the US presidential election approaches, Bitcoin remains neutral. Its 21-day Relative Strength Index (RSI) dropped to 56%, below the overbought threshold of 70%. This suggests Bitcoin is neither oversold nor overbought, making it an attractive opportunity for selling volatility.
Historically, Bitcoin has followed the S&P 500’s performance after the US presidential elections, with significant gains in the year following the election. In 2012, 2016, and 2020, the S&P 500 saw notable growth, and Bitcoin followed suit.
While past trends don’t guarantee future results, they offer valuable insights. As the election unfolds, investors will be watching closely to see how Bitcoin performs. Besides, the crypto market also anticipates a similar performance for the top altcoins.
Notably, a recent Bitcoin price analysis hints that the crypto is poised to witness a strong rally, irrespective of who wins the election. Although the market will likely record volatile trading or even a crash on the Election date, it is expected to make a quick rebound in the coming days. On the other hand, the US FOMC is also likely to boost the market sentiment, with the latest economic data indicating a 25bps Fed rate cut this week.
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
While predictions for Cardano to $1 may seem like a far cry, a cryptocurrency expert has injected new life into the claims. Cardano’s price is headed below 50 cents in search of a new support zone that can serve as a springboard to reach new highs.
Cardano Price Can Still Clinch $1 Despite Price Slump
Market technician Jonathan Carter in an analysis on X predicts that Cardano’s price can reclaim the $1 price point in the coming months. According to Carter, the recent ADA correction will not be a hindrance for Cardano’s price to reach $1.
ADA has lost a jarring 13% over the last week and trades at $0.64 in an unremarkable week for the cryptocurrency. On the daily charts, prices have generally moved sideways, underscoring a lack of investor enthusiasm.
For Carter, Cardano’s recent decline has seen it fail to stay above the $0.65 support level. The analyst opined that a downtrend is the offing for the Cardano price that could see a new support zone of $0.59. Carter says the new $0.59 support zone will hurl Cardano price to reach $1.
“Despite the long correction, the price still has a chance to bounce off this support and rise towards $1,” said Carter. “Otherwise, we will fall to the lower border of the broadening wedge.”
While some investors are eyeing an ADA bounce to $0.70, a plausible play will be a slump below $0.60 before the start of a rally.
A Slew Of Positives For ADA
Despite the pervading negative sentiment around ADA price, the cryptocurrency has a wave of positive fundamentals going for it. Cardano price spiked following Charles Hoskinson’s confirmation of Ripple’s RLUSD on ADA.
Furthermore, Charles Hoskinson reveals that Cardano will play a major role in Bitcoin decentralized finance (DeFi) application. In more positive technicals, Cardano price is forming a cyclical pattern from 2024 that can send prices to astronomical proportions in May.
While the prediction pegged prices at $2.5, optimists say ADA price to $10 is not a crazy hypothesis. The report cites present solid fundamentals and ADA’s over 1,000% spike to set its all-time high back in 2021 as pointers for the seismic rally to $10.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto analyst CasiTrades has provided a roadmap for the XRP price, revealing what could happen before the altcoin reaches a new all-time high (ATH). Based on her analysis, XRP could still witness a price decline before it potentially rallies past its current ATH of $3.4.
XRP Price Could Drop To $1.9 Before Rally To New Highs
In an X post, CasiTrades stated that in the event of a deeper flush, the XRP price could wick down to $1.90, suggesting that the altcoin could visit this low before it rallies to new highs. She believes XRP will ideally hold above this $1.90 and avoid dropping to new lows.
The crypto expert noted that the next move is critical. She claimed that if XRP gets that flush with bullish RSI divergence, it could mark the bottom before the altcoin rockets into Wave 3. However, CasiTrades warned that a break below $1.90 could force a reset of the entire new trend count.
Meanwhile, there is still the possibility that the XRP price might not drop to as low as $1.90. CasiTrades stated that $1.95 is the prime target, with subwaves heavily aligning there and a drop to $1.90 only likely to occur in the event of a deeper flush.
It is worth mentioning that US President Donald Trump recently announced reciprocal tariffs on all countries, a move which is set to ignite a global trade war and is bearish for XRP and the broader crypto market. As such, this development could be what sparks the deeper flush and send the altcoin to as low as $1.90.
A Drop To $1.4 Is Also The Cards
In an X post, crypto analyst Brandon asserted that the XRP price is about to have a massive breakout, to the downside. His accompanying chart showed that XRP could drop to as low as $1.4.
On the other hand, crypto analysts such as Ali Martinez have provided a bullish outlook for the XRP price. In an X post, he stated that XRP could be setting up for a rebound. The analyst further remarked that the altcoin is holding above $2 while the TD Sequential flashes a buy signal.
Crypto analyst Javon Marks also recently predicted that Ripple’s coin could surge 44x and reach as high as $99. He alluded to the 2017 bull run as the reason why he is confident that the altcoin could record such a parabolic rally.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Shiba Inu price is on a strong bearish trend, with price indicators recording losses in all time frames. The highly popular meme token now threatens to add an additional zero to its value if the current bear run continues for much longer. Even with Shibarium, SHIB’s layer-2, reaching the milestone of 1 billion transactions recently, the token’s price has not responded positively to this milestone.
Falling Shiba Inu Price Affects Holder Profitability
According to current data, SHIB is down 4.6% in the past 24 hours, 14.7% over seven days and a substantial 54.9% over the past year.
The current context for the SHIB price appears tough for the majority of investors. Based on on-chain analytics, 62% of SHIB investors are at the moment in a loss, while merely 34% are in profit and 4% are breaking even as per IntoTheBlock data.
SHIB has fallen 85.9% from its all-time high of $0.00008616 on October 28, 2021, over three years ago. This extended period of decline has made many of the investors who bought during the bull run in 2021 underwater on their holdings.
The token reflects a high ownership concentration with 74% of SHIB owned by major holders. The concentration may be behind price volatility. This is due to the fact that the moves by the large holders tend to have disproportionate impacts on the market. Major volume trading in the last week has hit $184.02 million which indicates sustained activity even as the price goes down.
Shibarium Milestone Fails To Reverse Trend
Despite Shiba Inu’s layer-2 scaling solution, Shibarium recently achieved a major milestone of 1 billion transactions. However, this accomplishment has not translated into positive price action for SHIB. This disconnect between ecosystem development and token price shows the current market’s focus on overall trends rather than project-specific achievements.
Shibarium is a key component of the Shiba Inu ecosystem that focuses on reducing transaction fees, increasing processing speed, and enabling more advanced applications within the SHIB ecosystem.
The continued negative price action despite reaching such a substantial transaction milestone raises questions about what catalysts might eventually reverse SHIB’s downward trend.
Will Shiba Inu Token Burns Aid In Price Pump?
The Shiba Inu community has historically highlighted token burns as one possible method of driving scarcity and price support. Recent burn behavior has been spotty and inadequate to have any real effect on the enormous Shiba Inu token supply.
After a recent spike in burn rate of more than 12,000%, the last 24 hours have seen the burn rate decline by 60%. During this period, only 37.6 million SHIB tokens were removed from circulation as per Shibburn data.
Token burns continue to be a mainstay narrative among the SHIB community. However, the volume of burning has to rise in order to have an effect on the token’s supply that can be measured. The 17.88% hike in trading volume in the last 24 hours to $311.14 million gives some indications of market action. This potentially could be being driven by the larger holders stockpiling at lower prices.
Vignesh
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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