The November Federal Reserve meeting ended yesterday and the cryptocurrency market is still roaring higher, riding the positive sentiment generated by the end of the US Presidential election. Although there are still some votes to be counted, it seems like a Democratic White House and a divided Congress would be the name of the game for the next two years.
Volatility had been dropping and pressure resumed on the US dollar, which favored the continuation of a crypto bullish move. Last week ETH was not catching up with the Bitcoin rally but for the past few days, the second-largest token showed signs of activity.
FED stays put – calls for more stimulus
As the market had expected, the latest FED meeting did not provide any new surprises, but still, the central bank remained committed to keeping the current extraordinary monetary policy measures in place for as long as necessary.
At the same time, chairman Jerome Powell asked for more fiscal stimulus as the economic activity is leveling off due to the rising coronavirus cases. The US topped 100,000 new daily cases for the first time this week, a worrying sign suggesting the winter will be a real challenge in the absence of an effective cure.
Monetary and fiscal policies will remain accommodative around the globe, putting pressure on fiat currencies but supporting the rise of fixed-supply assets, such as cryptocurrencies. The recent Bitcoin performance is impressive, as the valuation reached $15,700 on the Coinbase exchange, the first time since the beginning of January 2018.
Altcoins picking up momentum
Another important factor to note is that altcoins are also reacting to the positive market mood, suggesting the cryptocurrency market might end the year on an upbeat tone. Usually, the last three months of the year are bullish for crypto, and judging by how things look right now, market participants are very confident to continue buying, even at higher levels.
Keep in mind that this is not a guarantee for sustained gains until the end of the year, considering the broad range of risk factors that could undermine the rally. The PayPal news, weakening USD, and more hints at CBDC projects, are still keeping the risk appetite elevated.
How long could that continue is still unknown, which is why it would be important to look after hints of a reversal. A contested US election result continued deterioration of the pandemic situation, and Brexit are some of the events that could create a shift in the market.