Big Week for Crypto: U.S Mid-Term Elections, Oct CPI Get Closer

Paigambar Mohan Raj
Source: Reuters

The crypto markets did not have the best start this week. Bitcoin (BTC) has fallen below the $21K mark once again, and Ethereum (ETH) is hovering in the $1500s. If that was not enough, the Binance-FTX situation has created a lot of uncertainty among crypto investors and enthusiasts. Open interest for FTT (FTX’s native token) has doubled in the last 24 hours.

But that is just the tip of the iceberg. The major events that could have an even bigger impact on both, cryptocurrency and stock markets, are just around the corner.

Firstly, we have the US mid-term elections due on November 8th, Tuesday. All seats in the House of Representatives and one-third of the Senate are up for contest in these elections. Goes without saying, inflation and rising costs are at the heart of the battle.

The other major event this week is the October CPI data announcement due on November 10th. According to experts surveyed by Bloomberg, annual inflation is expected to be 7.9%, which is 0.3% lower than in September.

It is anticipated that the core CPI, which excludes the volatile food and energy components, increased by 6.6% year over year, the same rate as in September.

How will crypto markets react?

Crypto and risky assets may benefit from a CPI reading that is lower than predicted since it theoretically raises the likelihood that the Fed would delay future rate hikes. Nonetheless, many still expect another interest rate hike, as FED Chair, Jerome Powell has said that the financial body will do everything in its power to tackle inflation. Another rate hike might just add to the bearishness that looms over the markets.

Also, the US mid-term election has the potential to bring forth some volatility in the markets. According to the most recent polling data, inflation may play a significant role in determining the outcome of Tuesday’s US midterm elections to determine control of Congress. These results show how the rising cost of living and economic fears are weighing on Americans’ minds.

At press time, the global crypto market cap stood at $1.07 trillion, down by 3.1% in the last 24 hours.