As the upcoming U.S. presidential election approaches, there is growing speculation about the impact it will have on the crypto market. With the possibility of pro-crypto Republican candidate Donald Trump winning the election, bitcoin (BTC) bulls have a lot to look forward to. In addition, expectations for Fed rate cuts are adding to the positive sentiment surrounding the cryptocurrency.
However, amidst all the optimism, there is one indicator that is causing concern among investors. The copper-to-gold ratio, which is closely watched as a measure of risk appetite in the market, is showing a downward trend. This is typically seen as a warning sign for risk assets, including cryptocurrencies like bitcoin.
While the outlook for bitcoin remains positive in the short term, investors are advised to keep a close eye on market indicators like the copper-to-gold ratio to gauge the overall health of the market. As the election draws closer and the Fed’s decisions on interest rates become clearer, the crypto market is likely to experience increased volatility.
