The cryptocurrency market, prominently led by Bitcoin (BTC), concluded the initial week of November with a short-term bearish sentiment. An increasing number of traders are apprehensive about the expected crypto volatility, especially with the culmination of the 2024 U.S. election and the potential for Federal Reserve rate reductions.
Bitcoin’s Recent Price Movements
Bitcoin’s price ended last week with an inverted hammer pattern as the bulls were once again thwarted near the all-time high of approximately $73,000. However, Bitcoin’s dominance has shown a steady upward trajectory, recently surpassing the 60 percent mark. This trend provides a clear indication that the altcoin market currently lacks significant bullish momentum in the short term.
Altseason Delayed?
In recent months, the approval of several spot Ether ETFs across various jurisdictions has encouraged more fund managers to explore other altcoins. Leading the charge are Solana (SOL), XRP, and Litecoin (LTC), as they seek to offer comparable products. Despite these developments, the mainstream demand for altcoins remains relatively subdued compared to previous crypto bull cycles. It seems the anticipated climax of the altcoin market downturn is finally upon us.
According to renowned crypto analyst Benjamin Cowen, the altcoin market, spearheaded by Ethereum, is unlikely to enter the much-awaited parabolic phase of the bull run until early 2025. Currently, the ALT/BTC pair has fallen below a critical support level, suggesting further declines in the upcoming weeks. Nonetheless, Cowen suggests that a potential recovery could be on the horizon as the United States gears up for a shift in monetary policy, possibly influenced by the Fed’s rate cuts.
The Bigger Picture
The broader macroeconomic outlook for cryptocurrencies remains relevant more than seven months after the fourth Bitcoin halving. According to a prominent crypto analyst known as PlanB, the results of the U.S. 2024 elections will play a significant role in shaping the market’s future trajectory in the coming months.
Looking Ahead
As we move forward, it is crucial for investors and market participants to keep a close eye on both the macroeconomic factors and specific developments within the cryptocurrency sphere. Understanding these dynamics will be key to navigating the market’s complexities and identifying potential opportunities amid the shifting landscape.
