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Earlier today, Bitcoin fell to a daily low of $58,144 after hitting a monthly high of $60,656 on Saturday. This retracement in Bitcoin’s price also affected the altcoin market, with Ethereum, its closest competitor, dropping by over 4.5%.
Market analysts have connected the recent crypto market downturn to several factors, including the second reported assassination attempt on former U.S. President Donald Trump.
Trump Assassination Attempt and Crypto Market Jitters
On Sunday, Trump faced another assassination attempt at his West Palm Beach golf resort. The incident occurred while Trump was playing on the course with a friend. Secret Service agents reportedly fired at the suspect, who was later apprehended after fleeing in a black Nissan.
Given Trump’s outspoken pro-Bitcoin stance, some speculate the incident may have had a negative impact on the crypto market.
Read also: Hoskinson Calls Out Security Failures in Trump Assassination Attempt
QCP Broadcast Predicts Potential Recovery
Meanwhile, QCP Broadcast has argued that there is potential for a recovery following the weekend’s events. They pointed out that in July, after Trump’s first assassination attempt, Bitcoin experienced a rally of 13.8%, climbing from $58,000 to $66,000 within a week.
Read also: Assassination Attempt Propels Trump’s 2024 Election Odds to 71% on Polymarket
This raises the possibility of a similar recovery rally happening this week, especially when taking into account other significant factors, such as the potential Federal rate cut.
FOMC Meeting Adds to Uncertainty
QCP Broadcast also highlighted the upcoming Federal Open Market Committee (FOMC) meeting on September 18 as a key event for traders. There is uncertainty regarding whether the Federal Reserve will implement a 25 or 50 basis point (bps) rate cut.
Recent analysis shows that the probability of a 50 bps cut has increased from 30% to 59% over the past week. This heightened expectation of a more aggressive rate cut has led to greater market volatility, with implied volatility for Bitcoin rising by 8 points and Ethereum by 20 points as of last Friday. Considering the current market conditions, QCP Broadcast suggests traders adopt a strategic approach.
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