Bitcoin was at $67,400 at the time of writing, marking a significant development for the US elections on Sunday. Biden announced he would withdraw from the candidacy race and support Harris as expected. Last week, we mentioned the increasing likelihood of this scenario. So, what happens now?
Expert Opinion on Cryptocurrencies
BTC remains above $67,000, and continued closures at higher levels are crucial. Some altcoins like AVAX are continuing with over 10% gains, motivated by the protection of key regions. QCP Capital analysts mentioned the following in their assessment published at the time of writing:
“The US elections, starting with Trump’s assassination attempt and his statements about Taiwan needing to pay the US for protection, continue to cause fluctuations in risk assets.
Another significant development last night was Biden’s withdrawal from the race and his support for Kamala Harris. This situation triggered irregular movements in crypto, and before the rise to $68,000, the price dropped by nearly $1,000.
Election headlines will continue to increase market volatility, especially for crypto, and all eyes will be on Trump’s speech at the Nashville Bitcoin conference this weekend.
With a clearer picture of the US elections and a higher likelihood of a second rate cut by the end of the year, we continue to prefer trades with upward flexibility.”
Bitcoin and Altcoins Commentary
While there isn’t a major development on the macroeconomic front this week, we are approaching Fed week. The Fed will announce its interest rate decision at the end of next week. This generally means increased volatility in cryptocurrencies. Statements made by Powell throughout July were relatively positive. In this context, the market might price in a clearer rate cut scenario for September in the announcement at the end of July.
On the other hand, Tuesday is a big day, and ETH needs to benefit from the ETF listing on the exchange. If net inflows are significant in the first few days, we might see increased investor appetite for altcoins. ETH is trading at $3,500 at the time of writing.
