"In the face of uncertainty, inner firmness is the best guide. — Ray Dalio, Founder of Bridgewater Associates — (Principles)"
During the period leading up to the U.S. general election—October 29 to November 3, Bitcoin prices fluctuated by 8%, and the current Bitcoin price is stable at $68,800. We remain vigilant regarding the voting process and changes in information, anticipating that the election will trigger market turbulence.
The sentiment of the 'Trump trade' in Bitcoin has weakened, polls show a tight race, and institutional investors are beginning to take profits, leading to a price pullback. Global crypto investors are closely monitoring the election dynamics!
Not only are individual traders feeling uneasy, but the daily outflow from Bitcoin spot ETFs has also reached the second highest in history, totaling $541 million. Typically, inflows tend to signal market peaks, while outflows may indicate the market is nearing a bottom. This is merely speculation, but history always tends to rhyme!
I believe the rebound in the fourth quarter has just begun, and investors remain cautious about increasing risk before the election. Next week will bring more clarity as these two major uncertainties, the election and the FOMC rate decision, will be resolved. Global stimulative monetary policy may continue to inject the necessary liquidity into the crypto market.
In summary, the results of the U.S. election will be revealed within 24 hours, and the FOMC meeting may lead the Federal Reserve to shift from quantitative tightening to easing, with the expectation of significant market volatility. We need to focus on higher time frames and manage positions patiently.
Note: All content represents the author's personal opinion only, is not investment advice, and should not be interpreted in any way as tax, accounting, legal, business, financial, or regulatory advice. Before making any investment decisions, you should seek independent legal and financial advice, including advice regarding tax consequences.