Bitcoin (BTC), Popcat (POPCAT), Solana (SOL), and Mantra (OM) Price Analysis as US Election and FOMC Decision Loom

It was a sea of red in the cryptocurrency market on Tuesday as investors positioned themselves for the US election and the Federal Reserve interest rate decision.

Investors in the cryptocurrency market prepared for the US election and the Federal Reserve interest rate decision on Tuesday, leading to a sea of red across the board.

Bitcoin dropped to $67,900, while Solana (SOL), Popcat (POPCAT), and Mantra (OM) fell to $158, $1.2, and $1.28, respectively.

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These were significant reversals considering that Bitcoin peaked at $73,500, just shy of the all-time high of $73,800. Likewise, SOL topped out at $183, indicating a local correction after a 13% decline. POPCAT and OM have also corrected, showing double-digit declines from their highest levels this year.

Bitcoin and other altcoins have experienced a harsh reversal in recent days as fear gripped the market.

Data from CoinMarketCap showed that the crypto fear and greed index continued to decline, reaching 50 on Tuesday morning. This marked a significant drop from last week when the index was in the greed zone at 66.

The fear stems from the uncertainty surrounding the American election, which is set to take place on Tuesday, November 5.

Cryptocurrency has been a key talking point during the ongoing campaign period, with Donald Trump courting the industry. For instance, he became the first presidential candidate to speak at a major Bitcoin conference.

If he wins, he will become the first American president to own cryptocurrencies, with Arkham estimating his crypto portfolio at $6 million. JD Vance, his running mate, also owns some Bitcoin.

Kamala Harris, on the other hand, has largely steered clear of the crypto industry. Her most notable mention of crypto signaled that she would focus on regulations to ensure the stability of the sector.

Hence, these coins have pulled back as it remains unclear who will win. Official polls are close, whereas Polymarket, Kalshi, and PredictIt markets are leaning towards Trump.

The market fears uncertainty, which also explains why most American equities declined on Monday, with the Dow Jones dropping 257 points and the S&P 500 declining by 50 points.

Our outlook for these coins is that their prices will rebound irrespective of who wins the election.

Moreover, while the election is a key market theme this week, it will cease to be a major factor in the coming weeks.

For instance, the approval of spot Bitcoin ETFs was a hot topic earlier this year, but its impact has waned in recent months. Similarly, everyone was discussing the Bitcoin halving in April, but that conversation has largely fizzled out.

Therefore, we expect Bitcoin and other altcoins to rally if Trump wins the election and decline if Harris wins. A Trump victory could drive it higher than the all-time high of $73,800, while her win might push it down to $60,000.

Bitcoin will then rebound later this year as there is still strong demand for the coin. For one, data showed that spot Bitcoin ETFs have attracted more than $23 billion in inflows this year, which is set to continue.

These coins will also recover as the focus shifts to the so-called Santa Claus rally, which occurs ahead of Christmas.

Bitcoin, as shown below, has some positive technical catalysts, including forming a golden cross pattern as the 50-day and 200-day Weighted Moving Averages (WMA) have made a bullish crossover.

Bitcoin price chart by TradingView

These other altcoins, such as Solana, Mantra, and Popcat, will also rebound after the election due to their close correlation with the US dollar.