The cryptocurrency world had a fast and somewhat stressful start to November. The week was tough for investors as Bitcoin (BTC) struggled to reach its historic high of $73,000. Uncertainties about the outcome of the US Presidential Election and the expected Fed rate cuts made it difficult for investors to focus. These factors are among the main reasons for the volatile market mood.
Bitcoin Price Movements
Bitcoin was quite turbulent last week. Its efforts to reach the record high of $73,000 were in vain as the bulls failed to break this resistance once again. The weekly close occurred with an inverted hammer formation, which gave mixed signals to investors. Despite this, Bitcoin’s market dominance has attracted attention by exceeding 60%. This shows that Bitcoin is still the strongest asset in the market and supports investor confidence.
On the other hand, the altcoin market is showing a more sluggish outlook. Bitcoin’s increasing dominance is limiting the momentum of other cryptocurrencies. In the short term, altcoin investors will need to be more cautious. Bitcoin (BTC) still has a large impact on the market and its direction is difficult to determine, which is causing concern among investors.
Why Are Altcoins Inactive?
While the approval of several spot Ethereum ETFs in recent months has raised hopes, the altcoin market has not seen a major boom. Similar products are planned for altcoins such as Solana (SOL), XRP, and Litecoin (LTC). However, overall demand is not as high as in previous bull markets. Investors are wondering why altcoins are still inactive and are questioning when a bull run will begin.
According to Bitcoin and crypto analyst Benjamin Cowen , the altcoin market is unlikely to enter a major bull run until early 2025. The ALT/BTC pair losing a key support level is a negative signal for the market. However, Cowen adds that altcoins have a chance to rally if the Fed makes changes to its monetary policy. So, it’s not a completely hopeless picture; it’ll just take a little more patience.
Macroeconomic Factors and Future Prospects
Macroeconomic factors continue to play a leading role in the crypto market. Seven months have passed since Bitcoin (BTC)’s fourth halving, but the market is still searching for balance. Famous analyst PlanB believes that the results of the 2024 US Presidential Elections will have major impacts on the crypto market. New policies and possible regulations can shape investor decisions and price movements.
In addition, if the Fed cuts interest rates, a new economic period may begin. This may create both opportunities and risks for investors. While macroeconomic uncertainties continue, investors should not lose sight of the big picture and take careful steps. As we reported at Kriptokoin.com , the Bitcoin price affects the markets quite a bit. The market is unpredictable as always, so it is useful to think strategically.
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