Our forecast for the cryptocurrency market is that we expect continued growth in November as more and more institutional investors enter the market and demand increases. Cryptocurrencies, including bitcoin (BTC), showed little volatility in October, which is unusual.
© Powered by Cryptopolitan Why Cryptocurrencies Are Trending This Week (October 31 - November 4) 1Cryptocurrency Price Heatmap: Coin360
After a mostly weak market month, October ended slightly higher for the cryptocurrency, making for a busy November. A short-term market rally could affect Bitcoin and ETH (ETH) bullish trading later in the month.
A possible driver of November's rally in the market is growing interest from institutional investors. The drop in US Treasury yields in the last week of October contributed to the recent gains.
Events in the crypto space last week prompted the world's largest investment firm, Fidelity, to allow individual investors to trade bitcoin and ethereum. The $4.5 trillion asset manager has created an early access waiting list for investors to trade both assets, giving 34 million potential investors access to cryptocurrencies.
Global payments giant MasterCard has announced that it has selected seven crypto-Albanian companies to participate in its Start Path program. Over the past few years, the company has helped businesses in the market accelerate the adoption of cryptocurrencies. According to the company, this program is designed to help startups around the world increase the popularity of the cryptocurrency market.
October analysis of the crypto market
In October, the price of bitcoin was stable between $19,000 and $20,000 with very little fluctuation during the month. This is unusual in the cryptocurrency market, which sees large price swings on a daily basis.
For the first time since 2020, BTC's 20-day volatility fell below the Nasdaq Composite and the S&P 500. Anthony Russo, Senior Director of Crypto Product Strategy at TradeStation, believes this could be a positive development for crypto investors.
"Bitcoin's historically low volatility may be a sign that it is falling faster than stock markets. According to Rousseau, Bitcoin volatility is currently starting to decrease as the weekly range narrows.
In October, there were big moves from institutional investors, showing a growing interest in cryptocurrencies. This includes the acquisition of Twitter by Elon Musk, which led to a rise in Dogecoin and other cryptocurrencies.
November Cryptocurrency Market Review
Looking ahead to November, investors appear to be slowing the pace of rising inflation and interest rates. This could lead to more positive market activity in the crypto space, especially given the growing institutional interest.
In the last week of October, Bitcoin, Ethereum and other cryptocurrencies rose, with Bitcoin climbing above $20,900 and Ethereum above $1,580. This increase may be related to the market crash, when traders who thought the market was going down , were forced to buy their positions.
Both Bitcoin and Ethereum are expected to end the month with gains of 6% and 20% respectively. Unfortunately, both cryptocurrencies have lost more than 57% of their value this year.
However, in the past week, crypto companies have fallen victim to fraudsters and scammers, costing investors millions of dollars. For example, after the recent wallet raid in which hackers stole $28 million worth of digital assets, Deribit, one of the largest cryptocurrency options exchanges, stopped withdrawing funds. Oracle's Solana Defi Solend application operation resulted in additional losses of $1.26 million.
The US dollar continues to rise as Bitcoin and Ethereum find support
As November approaches, investors' fears about inflation and interest rates appear to be easing. The probability of a fourth consecutive 75 basis point (bp) increase in federal funds rates in November is currently estimated by the bond market at 89%.
However, the dollar continues to rise. The DXY index, which tracks the US dollar against a basket of six major currencies, continued to rise in November after hitting a two-year high in October. 
US dollar chart: trade economy
Cryptocurrencies are often seen as a hedge against inflation and weakening fiat currencies, so it's no surprise that they're gaining support despite the strength of the dollar. While cryptocurrency prices appear to be on the rise, results may be limited by the strong US dollar.
Those worried about the global economic downturn invested in the dollar in 2022, which strengthened in value against foreign currencies.
But there are signs of growing institutional interest in the cryptocurrency market, which could help mitigate the negative effects of a stronger dollar. A strong US dollar means bad news for cryptocurrency prices as it is inversely proportional.
Furthermore, after the big "B", the dollar is expected to continue to strengthen.
The dollar's rise "is still being felt in some quarters," according to Goldman Sachs analyst Kamakshiya Trivedi, who predicted the Fed would not begin cutting interest rates until 2024.
But even with a strong dollar, growing institutional interest in the cryptocurrency market could offset any negative impact and boost its value. Fidelity Digital Assets recently reported that 40% of institutional investors own digital assets, up from 22% in 2019.
Institutional understanding of cryptography
Institutions are beginning to show more interest in cryptocurrencies amid global financial uncertainty. While the cryptocurrency market remains relatively quiet, institutional players have made some notable moves.
In late October, the CEO of Fidelity Digital Asset Management announced that the $9.9 trillion asset manager would add 100 more employees to its digital assets division, bringing its total headcount to 500.
Marcus Sotirio, an analyst at GlobalBlock, said the appointment is the latest in a series of moves that show believers are becoming more aggressive toward cryptocurrencies. Fidelity's actions went against the trend of mass layoffs at several crypto companies.
Among the companies that have joined the more than 11,000 cryptocurrency layoffs reported this year are cryptocurrency exchange Coinbase, cryptocurrency market maker GSR and cryptocurrency trading firm NYDIG.
According to Sotirio, the investments made with the help of Fidelity and other large organizations are comforting.
This suggests that large companies with strong balance sheets to weather the storm will benefit from the failure of others, the author says.
SEC Increases Pressure on Cryptocurrencies
The US Securities and Exchange Commission (SEC) has taken a tough stance on cryptocurrencies in recent months. While the cryptocurrency market has a reputation for being decentralized, SEC Chairman Gary Gensler said it is vulnerable to damage by intermediaries such as market makers and exchanges.
"We see centralization in the cryptocurrency market based on the idea of decentralization. This area has received a lot of attention from brokers in the market," Gensler said Monday before the annual meeting of the Securities and Exchange Board. Financial Markets Industry Association.
Most cryptocurrencies, according to Gensler, are securities. In June, he also said that cryptocurrency exchanges that do not comply with the SEC are "operating outside the law" and could face enforcement action.
The famous TV presenter Kim Kardashian was an example of the SEC. In early October, the social media celebrity agreed to pay $1.26 million to settle allegations that he understated the $250,000 he earned by endorsing EthereumMax on Instagram.
In an Oct. 3 press release, Gensler said Kardashian's payment "should be a reminder to celebrities and others."
Regulation of cryptocurrencies is being tightened around the world.
Cryptocurrency regulation will undoubtedly be stricter and more comprehensive, but it is also claimed to have positive benefits for the industry. Uncover fraudsters, strengthen consumer protections and ultimately lead to greater acceptance and trust in cryptocurrencies. The election itself could be the push for the hidden crypto market in November. The Republican Party is generally considered pro-crypto and anti-regulation, so a major election win for the Republican Party could lead to a rally in the crypto market.
A new Republican-backed Senate bill could provide at least temporary regulatory protection for cryptocurrency exchanges.
The Digital Trading Transparency Act of 2022 establishes a partial application transition period during which no enforcement actions will be permitted against exchanges that attempt to list digital asset securities or fail to register as an exchange or broker.
But voters may not agree to be cautious about cryptocurrencies.
According to a recent survey by the Crypto Council for Innovation, 52% of 1,200 voters polled want more regulation of cryptocurrencies and only 7% want less.
In general, there are factors that affect both the rise and fall of cryptocurrency prices. But with growing institutional interest and regulatory pressure, the long-term future for cryptocurrencies looks bright.
By the end of the week, Bitcoin was trading at $20,633 and Ethereum at $1,581. Altcoins such as Chainlink and Dogecoin have shown price trends this week. Market incentives will continue to exist, but investors must remain vigilant and informed as the cryptocurrency industry continues to evolve.