Crypto markets show heightened activity, with Bitcoin and meme coins responding to US election updates and anticipation.
Bitcoin Surges Amid US Election News
Bitcoin’s price briefly crossed $74,600, spiking over 7% in just an hour. This uptick reflects the crypto market’s response to early US election data, where Republican candidate Donald Trump leads Democratic contender Kamala Harris in electoral votes, according to the Associated Press.
Rising Prices for Bitcoin and Meme Coins
Bitcoin’s rally did not stand alone, as popular meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) rose by 1.9% and 2.6% respectively. CoinGecko reports show similar boosts in Solana (SOL), marking a trend across several major crypto assets.
Crypto Volatility Mirrors Election Uncertainty
Crypto markets have shown increased volatility, with Bitcoin dropping 2.4% to a local low of $68,755 before rebounding. Meme coins DOGE and SHIB followed suit, fluctuating but remaining up 11.2% and 8.5% over the last 24 hours. Analysts predict Bitcoin’s volatility could increase even more after election results are finalized.
Musk’s Endorsement and DOGE Rally
Dogecoin’s recent rally aligns with ongoing support from Elon Musk, a vocal Trump supporter and advocate for government efficiency reforms. Musk’s influence in the crypto space often sparks notable movements in DOGE’s value, adding further momentum during the election period.
Market Volatility Predicted to Rise Post-Election
Analysts foresee a potential 10% price swing in Bitcoin after the election results are announced. Bitfinex experts caution that the outcome could either drive further growth or trigger a significant price correction.
Bitcoin Volatility Index Hits Three-Month High
Bitcoin’s forward-looking volatility index recently hit 65.7, the highest in three months, before slightly dipping to 63.8. This indicator reflects the market’s anticipation of upcoming shifts in the crypto landscape as election and Federal Reserve updates unfold.
Vote Counting Progress and Possible Delays
With polls open in eight states, early results show Trump leading Harris with 23 to 3 electoral votes. The tight race suggests that swing-state recounts could delay final results, fueling ongoing market unpredictability.
Fed Meeting May Add Fuel to Bitcoin’s Moves
Adding to potential market shifts, the Federal Reserve’s Open Market Committee will meet on Nov. 7. Many anticipate a 25 basis-point interest rate cut, a move likely to impact crypto markets.
Market Outlook Amid Election and Fed Decisions
As election results and Federal Reserve policies unfold, crypto markets brace for substantial price action. Bitcoin’s volatility and crypto asset movement reflect a wider trend as market watchers keep a close eye on the developing news.
Standard Chartered’s crypto custody unit Zodia aims to raise $50 million as institutional demand for secure digital asset storage rises.
Institutional Demand for Secure Crypto Custody
Standard Chartered’s Zodia Custody is raising $50 million to enhance its crypto custody services in a competitive market. The funding will support Zodia’s expansion and address increasing demand from institutions for secure digital asset solutions.
New Funding Strategy for Zodia Custody
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In its latest funding round, Zodia Custody plans to diversify investors, seeking backing from angel investors, tokenization, and payments firms. Unlike previous rounds dominated by wholesale financial institutions, this shift reflects Zodia’s intent to reach new market segments.
Previous Funding Successes
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Architect Partners, a firm specializing in crypto advisory, is assisting Zodia in its $50 million funding efforts. Previously, Zodia secured $36 million in a Series A round, with SBI Holdings emerging as a significant shareholder, second only to Standard Chartered.
Growing Competition in Crypto Custody
As the crypto custody industry expands, Zodia faces competition from major traditional banks and crypto-native companies. Established banks like BNY Mellon, State Street, and Citigroup have entered the sector, joining crypto-native firms such as Komainu.
Demand for Secure Crypto Solutions
Institutional interest in crypto custody services has surged as organizations seek secure solutions amidst concerns over cyberattacks and asset loss. Demand for custody services is set to grow as more institutional players enter the digital asset space.
Challenges in the Crypto Custody Sector
Despite growing demand, crypto custody providers face challenges, including high fees and regulatory uncertainty. These factors may deter some institutions, affecting the growth trajectory of businesses like Zodia.
Strategic Moves for Future Growth
To capture new opportunities, Zodia Custody is focused on market expansion and product development. By securing this funding, Zodia aims to solidify its position as a trusted provider in the digital asset custody ecosystem.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
