Crypto Market Stalls as Korean Trading Drops, U.S. Election in Focus

The crypto market is in a holding pattern, with Korean crypto trading volumes dropping and Bitcoin funding rates remaining low. As Bitcoin hovers above $68,000, market participants are keeping a close watch on the upcoming U.S. presidential election, hoping it might stimulate renewed trading activity.

Data from Matrixport shows a sharp decline in Korean crypto trading, a region traditionally active in altcoin markets. Trading volumes in Korea, which once reached $16 billion earlier this year, now sit between $2 billion and $4 billion. This decrease has weakened altcoin rally potential, slowing momentum across the broader crypto market.

#Matrixport Today 📈 – Oct 28: Crypto Market Awaits Spark as #Korean Volumes Lag and U.S. Election Looms#cryptomarket #MarketTrends #MarketInsights #CryptoInvesting #BTC #BTCETF #USElection2024 pic.twitter.com/0GfmCy0Pse

— Matrixport Official English (the only official X) (@Matrixport_EN) October 28, 2024

Bitcoin Funding Rate Signals Caution

The funding rate for Bitcoin, which reflects the cost of leveraged long positions in futures, has decreased from a high of nearly 90% in March to around 5-15%, according to Matrixport.

Low funding rates often signal cautious sentiment, with traders hesitant to take on leveraged positions while awaiting clearer market signals. Hedge funds and institutional investors are adopting a wait-and-see approach, preferring to hold off on new investments until signs of a potential market shift.

U.S. Election Seen as Potential Crypto Market Catalyst

With the U.S. presidential election just a week away, some analysts view it as a potential catalyst for the crypto market. Elections typically have ripple effects on global markets, including cryptocurrencies, due to anticipated shifts in economic policy or regulatory frameworks.

Key policy announcements could rekindle interest in cryptocurrency trading, potentially driving up volumes and Bitcoin prices. Standard Chartered analyst Geoff Kendrick has speculated that Bitcoin could rally to $125,000 after the election.

Specifically, he cited that in 2012, Bitcoin jumped 194% in 115 days after the election; in 2016, it increased by 79% over 118 days; and in 2020, it rose 44% in just 41 days. This pattern indicates that similar price movements may happen in the upcoming election cycle.

Currently, Bitcoin is trading at around $68,000 as investors anticipate potential momentum from the election.

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