- Bitcoin approaches the $69K mark as upcoming macroeconomic data and Federal Reserve decisions fuel market speculation.
- Potential peak in bond yields may drive renewed interest in Bitcoin as a hedge against inflation risks.
- U.S. elections add uncertainty, with regulatory and economic policies likely to impact Bitcoin’s trajectory.
Bitcoin, the leading cryptocurrency by market cap, appears poised to test its all-time high (ATH) of $69,000 in the coming weeks.For the popular FX pairs, analysts have pinpointed four to be main drivers of price action – major macro data releases, payoff times and apex of yield, and decisions from the Federal Reserve. Also, the U.S. elections may affect the price in the short term further creating a special environment for the crypto market.
Macro Data and Federal Reserve Decisions Loom Over Market
There’s a convention that the driving element, namely the peak in bond yields, usually buoys risk assets and this is a factor that contributes to Bitcoin’s momentum. The increase in yields over the past months has placed a selling pressure on high-growth products like cryptocurrencies. However, others argue that yields may be approaching their high and this could easily ease this pressure.
In addition to Bitcoin acting as a safe haven against inflation and despite lower yields could potentially promote demand from investors seeking to extend their diversified portfolio.The upcoming Federal Reserve meetings have been also included into the list of factors that will define further dynamics of Bitcoin.Â
Market participants are literally on the lookout for any hints that are being passed by the Fed regarding change in the interest rates or any other policy changes. If the Fed resigns to a lower or more stable rate of interest, then demand for bitcoins might increase as people seek to exploit other opportunities that come with high returns in the volatile Bitcoin market.
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U.S. Elections Add Another Layer of Uncertainty
Thus, the unstable political situation may be stirred up by the political events in the United States while the elections are approaching. In the past, the Bitcoin showed a tendency to the growth of volatility during elections since investors’ sentiment often changes with potential changes in regulations or new policies. If the sentiments regarding the bitcoin policies are positive then Bitcointram might be more pronounced as a mainstream currency, while if policies which are not friendly to the bitcoins are passed then the sentiments could be negative.
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