Bitcoin concluded a historically strong September with a downturn, but market analysts are anticipating a significant rally following the upcoming U.S. elections.
Analysts Expect Bitcoin Rally After US Elections
Despite October being a historically bullish month for cryptocurrencies, options traders are predicting Bitcoin rally in the short term. Jake Ostrovskis, an OTC trader at crypto market maker Wintermute, noted that the current positioning suggests support for a post-election rally.
The broader cryptocurrency market also experienced a decline on Monday, with traditional markets showing signs of weakness as well. U.S. equity indexes and key European markets retreated, while Japan’s Nikkei index plunged 5% following the surprise appointment of Shigeru Ishiba as the new prime minister.
Federal Reserve Chair Jerome Powell tempered expectations for future rate cuts in his speech on Monday, indicating that the central bank will take a more gradual approach to monetary policy. While he acknowledged that the economy is in solid shape, Powell emphasized the need to use tools to maintain its stability.
Despite the current dip, the overall sentiment in the cryptocurrency market remains positive, with many analysts anticipating a Bitcoin rally increase after the U.S. elections. As the election approaches, investors are closely watching political developments and their potential impact on the cryptocurrency market.
