Bitcoin Tops $37,000 on Argentine Presidential Election Results as Analysts Focus on Fed Notes
-
Bitcoin surpassed $37,000 early Monday due to the appointment of Javier Milei as President of Argentina. Milei is a pro-Bitcoin candidate.
-
However, artificial intelligence (AI)-focused tokens gained over 8% due to important but unrelated developments in AI startups.
-
However, some traders warn that the market will react after the Federal Reserve meeting minutes are released on Tuesday. This is because an atmosphere of low liquidity is expected towards the end of this week.
Bitcoin (BTC), a cryptocurrency-friendly candidate in Argentina’s presidential election, Javier Milei, won the race. The crypto market as a whole has gained almost 2% in the last 24 hours.
Milei, a self-described anarcho-capitalist, supports Bitcoin, saying it is “a return to the original creator of money, the private sector.” However, he has not suggested making the world’s largest cryptocurrency legal tender for the country.
Artificial intelligence (AI) tokens, which represent a subset of the AI sector, also gained 8% despite important but unrelated developments in AI startups. Bittensor TAO gained 4.2%, adding to its 77% gain last week. Ocean Protocol’s OCEAN and Fetch AI, as well as SingularityNet AGIX, are up as much as 16% in the last 24 hours. They outperformed Bitcoin and other majors.
Near Protocol’s NEAR and Lido’s betting platform LDO each rose 11%.
Traders say the crypto market is likely to be busy this week, with a number of events and announcements that could influence market movement.
eToro market analyst Simon Peters wrote to AskFX that the US Federal Reserve will release its latest meeting minutes tomorrow. These banknotes have the tendency to move markets. This protocol provides a deeper understanding of how central banks think. Investors are looking for more evidence that interest rates may have peaked.
“Nvidia will also release its latest results on Tuesday. Investors have called the company a “pickaxe” of the AI revolution. Cryptoassets will likely respond to the company’s announcements,” Peters said.
Peters warned of low liquidity at the end of the month as US markets remain closed on Thanksgiving Day and Black Friday will usher in the holiday shopping season. Low trading volumes can lead to volatility in the markets.
FxPro analyst Alex Kuptsikevich explained that while traders expect the Federal Reserve to announce interest rate cuts in the next few months, this move would only occur if financial markets first suffered a severe blow.
Kuptsikevich said in a note Monday that “due to weakened risk appetite, the Fed typically does not initiate a rate cutting cycle until the market begins a significant correction.” “A rate cut in the first half of 2024 can only be triggered if there is There will be severe volatility in debt and equity markets.”
Kuptsikevich stated that a decline in broader markets could see Bitcoin return below $30,000 before triggering another bull cycle.
