Bitcoin (BTC) crossed the $37,000 mark early Monday following the election of Javier Milei, a pro-Bitcoin candidate, as the President of Argentina. The broader cryptocurrency market saw a nearly 2% increase over the past 24 hours.
Javier Milei, known as a self-described anarcho-capitalist, has been a supporter of Bitcoin and has referred to it as “the return of money to its original creator, the private sector.” However, he has not proposed making Bitcoin legal tender in Argentina.
Additionally, the artificial intelligence (AI) token sector experienced significant gains, with an increase of over 8%. These gains were driven by unrelated developments in emerging AI projects. Bittensor’s TAO saw a 4.2% rise, building on a 77% rally over the past week. Tokens like Ocean Protocol’s OCEAN, Fetch AI’s FET, and SingularityNet’s AGIX surged as much as 16% in the last 24 hours, outperforming Bitcoin and other major cryptocurrencies.
Near Protocol’s NEAR recorded a 20% jump while staking platform Lido’s LDO added 11% to its value.
Crypto markets are expected to experience a potentially eventful week, with various announcements and events that could influence market movements. The release of the U.S. Federal Reserve’s meeting notes on Tuesday is a significant event that could impact markets, providing deeper insights into central bank thinking. Investors are particularly interested in any confirmation regarding the trajectory of interest rates as inflation trends change.
Nvidia’s earnings report, scheduled for Tuesday, is another crucial event as the company is considered a significant player in the AI sector. The crypto market is likely to react to Nvidia’s announcements.
Analysts also warned of low liquidity toward the end of the week, as U.S. financial markets close on Thursday for Thanksgiving, followed by Black Friday, which marks the start of the holiday shopping season. Thin trading volumes during this period can lead to increased market volatility.
FxPro analyst Alex Kuptsikevich noted that while some traders anticipate rate cuts from the Federal Reserve in the coming months, such a move might only occur if the financial markets experience a substantial downturn. Historically, the Fed has initiated rate cuts after significant market corrections, driven by weakened risk appetite. Kuptsikevich suggested that a rate cut in the first half of 2024 might require severe turbulence in both debt and equity markets.
A broad market downturn could potentially lead Bitcoin to drop below $30,000 before initiating another bullish cycle, according to Kuptsikevich.