Bitfinex exchange recently stated in a report that the cryptocurrency market may experience significant volatility within three days following the announcement of the U.S. election results. However, due to Bitcoin absorbing most of the funds in the market, the hope for a significant rebound in altcoins might not be high during this bull market.
(Background context:
Bitcoin is currently on the rise, so why is there a wave of layoffs in the Web3 sector?
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(Context supplement:
Has the decline ended? Bitcoin rebounded after a dip to $67,500, with the U.S. presidential election and the Federal Reserve’s rate decision looming…
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Bitcoin reached a new all-time high of $75,242 at around 11:05 today, marking an 8.8% increase over the past 24 hours. It slightly retreated to the $74,000 level before the article’s deadline, and investors are advised to be cautious of volatility.
Bitfinex: Market to experience significant volatility from November 5 to 8
In this context, cryptocurrency exchange Bitfinex recently released a research report indicating that last week’s increase was driven by the so-called “Trump Trade.” The market previously believed that Trump’s chances were significantly ahead of his opponent Kamala Harris, which led to increased buying of Bitcoin. However, as Trump’s chances decreased and the uncertainty of the U.S. election deepened, Bitcoin’s rise faced resistance.
On the eve of the election results (Taiwan time, November 6), as market predictions of Trump’s chances declined, the implied volatility in the options market remained relatively calm. This indicates that investors are still in a wait-and-see mode, waiting for everything to settle.
Nevertheless, Bitfinex predicts that with the U.S. election results and the Federal Reserve’s upcoming November rate decision, market volatility will significantly increase from November 5 to 8.
Bleak Outlook for Altcoin Rebound
On the other hand, although the market generally believes that Bitcoin is on an upward trend in the long term, Bitfinex points out that investors seem to have lost their previous speculative interest in altcoins. Even if a large amount of funds is attracted to the cryptocurrency market, most of these funds are still absorbed by Bitcoin:
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