$BTC Holds $80,000 As Federal Reserve Keeps Rates Steady

As a decidedly choppy October comes to a close, global markets are waiting with bated breath from the outcome of next week’s U.S. midterm elections.

With Fed Chair Kevin Warsh holding interest rates steady in October 28’s FOMC meeting, $BTC and other crypto majors like $SOL and $ETH are holding key levels, with traders waiting for momentum to dictate the next trend.

Despite uncertainty in majors, onchain trading has notched a massive win. Intercontinental Exchange (ICE), the parent company of the NYSE, has announced a partnership with Hyperliquid, sparking a 15% move for $HYPE.

$SOL Holds $100 Amidst “Hawkish Pause”

The Federal Reserve held rates at 3.75% to 4% on October 28, pausing after September's first hike in three years. While Warsh declined to offer guidance on December, prediction market data from Kalshi forecasts strong chances of a 25bps rate hike.

BlackRock CIO of Global Fixed Income Rick Rieder backed the Fed's patience, arguing another hike would do little to cool sticky inflation in energy, insurance, healthcare and education.

As is often the case, yesterday’s FOMC sparked plenty of volatility across crypto markets. $BTC spiked to $81,800 after the announcement before sliding to $79,600. With optimism returning to crypto markets, $BTC has reclaimed $81,000, holding critical levels as Q4 progresses. Meanwhile, $SOL bounced resoundingly off strong support at $100 to exchange hands at $102 in today’s session.

80 Years of Data Indicate Bullish Continuation After Midterms

Next Tuesday's midterm elections are now the market's next big hurdle. While markets have shown signs of uncertainty ahead of the landmark political event, historical price action offers some comfort.

Since 1942, the S&P500 has consistently given positive returns between November and June following the U.S. midterm elections. 

Prediction market forecasts suggest the pro-crypto Republicans are likely to lose the house and senate to the democrats, which may impact sentiment towards crypto assets in the short term. However, a midterm victory hardly gives the opposition any power to exercise any mechanical changes to crypto regulation or legislation, meaning the impact of a Democrat victory on markets may be subdued.

$HYPE Up 17% as ICE Partners with TradeXYZ

For the second time in the past 3 months, Hyperliquid has found its way onto the largest of stages. After President Trump promised to bring Hyperliquid to the United States in August, some of the biggest names in finance are coming to the table. 

ICE, the parent company of the New York Stock Exchange, has agreed to partner with TradeXYZ to bring Hyperliquid-based perpetual futures to the U.S. ICE will operate the markets and clearing for perps tied to crypto, equities, indices, commodities and forex, while TradeXYZ designs the markets on Hyperliquid's HIP-3 framework.

“We’ve seen a clear increase in retail participation in markets, and that participation is becoming far more global, with retail traders increasingly seeking short-duration exposure, often around the clock. Together with Trade[XYZ], and subject to regulatory approvals, we intend to bring these markets into a U.S. regulated framework, combining Trade[XYZ]’s retail market expertise with ICE’s exchange, clearing and regulatory capabilities. We intend to find retail traders where they want to be, through the partners, brokers, and platforms they already use. We see these perp markets as additive to our futures markets, not a replacement for them.” - ICE Chair and CEO Jeffrey Sprecher.

According to the press release, ICE is also taking an undisclosed strategic stake in TradeXYZ. Beyond Intercontinental Exchange, the announcement also heralded the arrival of legendary investor Stan Druckenmiller to the CT world, with the market mogul voicing his support for Hyperliquid and TradeXYZ

$HYPE surged 17% on the news to around $96, within touching distance of the $97.96 all-time high it set last month. 

ICE joins other TradFi players like Payward in their mission to bring perps to the United States, with the latter intending to be the first CFTC-regulated deployer on HIP-3 markets.

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