The crypto markets are once again shrouded with uncertainty. According to Coinglass, 152,000 Bitcoin (BTC) worth a whopping $3.15 billion, was moved to exchanges in the last 24 hours.
Now, crypto leaving wallets for exchanges is usually not a good sign. It leaves a window of possibility for the tokens to be dumped on the markets. Last week Bitcoin (BTC) managed to move past the $20k mark. However, the rally did not last till this week. The original crypto has once again slipped below $21k. Not only that, even Ethereum (ETH) fell below the $1600 mark. The development could be in anticipation of further volatility hitting the markets.
More volatility coming for Bitcoin and other cryptos?
The FED recently increased interest rates by 75 basis points in an attempt to curb inflation. However, two events, in particular, may have had a hand in investor sentiment.
Firstly, the US mid-term elections are due on November 8th, Tuesday. Rising costs and inflation are two of the most anticipated topics for both parties.
Additionally, the FED is set to release its October inflation data on November 10th, just two days after the mid-term elections. As per estimates, US inflation might reach 7.9%, 0.3% lower than in September. Nonetheless, many still expect the FED to increase interest rates in the coming month. However, if the CPI numbers are lower than expected, it could give much-needed relief to the crypto markets.
Furthermore, the recent FTX-Binance situation has created additional FUB among investors. Binance CEO, Changpeng Zhao (CZ), said that the exchange will liquidate all FTT (FTX’s native token) holdings after “recent revelations.”
At press time, the global crypto market cap stood at $1.07 trillion, down by 2.6%. On the other hand, Bitcoin (BTC) was trading at $20,708.60, down by 2.4% in the last 24 hours.