• Bitcoin retraced below $60,000 for the first time since September 18th
• A crypto analyst argued that altcoins with strong fundamentals are not rallying due to regulatory hurdles, but could see a boost if Donald Trump wins the US presidential election
• Traders believe the altcoin market is still in an accumulation phase, with the potential for a rally in Q1 2025
Bitcoin and major altcoins have fallen from recent price highs as the crypto market faces headwinds from an uncertain regulatory environment.
Bitcoin Drops Below $60K
Bitcoin has fallen below the crucial $60,000 price level for the first time since Sept. 18, and market participants are speculating whether there will be further downside.
“First BTC target at $59K reached, $57K next. Whether we get a bounce before that is unclear,” crypto trader Justin Bennett stated in an Oct. 10 tweet.
Bitcoin is trading at $59,152, down 2.34% over the past 24 hours, according to TradingView data. The asset’s decline comes despite October being historically one of the strongest months for Bitcoin.
Regulatory Uncertainty Weighs on Altcoins
Meanwhile, altcoins with strong fundamentals aren’t rallying because projects are cautious and holding back on maximizing revenue due to ongoing regulatory uncertainty, according to a crypto analyst.
Some altcoins with real value aren’t rising due to regulatory hurdles, CryptoQuant founder and CEO Ki Young Ju explained in an Oct. 9 tweet.
Ju opined that if Donald Trump were to win the United States presidential election on Nov. 5, alts could rally. However, for now, buying altcoins is “pure speculation in an unregulated market.”
“For now it’s all gambling in an unregulated space,” he stated. He argued that a Trump victory would allow altcoin projects to capitalize on their revenue potential.
“If Trump wins expect regulatory changes including fee switches enabling token burns for revenue-generating projects,” he said.
Regulatory actions have had a direct impact on altcoin prices in recent times. In April, Uniswap (UNI), the token for the decentralized exchange of the same name, sank to a six-week low after Uniswap said it received a proposed lawsuit notice from United States regulators.
Conclusion
The crypto market faces uncertainty in the near-term from potential regulatory actions. However, traders remain bullish on Bitcoin and altcoins over the longer term. The next few months could prove decisive in determining the direction of the market as the year wraps up.
