Bitcoin (BTC) has been making waves in the market recently, with its price movements catching the attention of traders. The leading cryptocurrency saw an impressive 8% rise, surpassing the $73,000 mark, causing much excitement. However, Bitcoin has since pulled back slightly and is currently being traded around $72,000.
There are several factors contributing to Bitcoin’s increase in price. Firstly, there is strong demand for spot Bitcoin ETFs in the United States. Additionally, major economies have initiated a new cycle of monetary expansion, which has further boosted Bitcoin’s value. Lastly, the rising chances of a crypto-friendly candidate, Donald Trump, in the upcoming U.S. presidential elections have added to this positive momentum.
The outcome of the U.S. presidential race is of particular interest to the market, as critical states like Nevada and Pennsylvania are believed to have a significant influence. As the election approaches its conclusion, it remains to be seen whether the “Trump Trade” will continue or if unexpected developments will alter the course.
Market expectations regarding a rate cut by the Federal Reserve (Fed) will become clearer after the release of the non-farm payroll data this Friday. It is anticipated that there will be an increase in employment of around 110,000, which is approximately half of the previously reported figure. The data released on Friday will shape market expectations for a rate cut ahead of the upcoming Fed meeting. Currently, there is a 96.5% estimated likelihood of a 25 basis point rate cut in November, with expectations for another cut in December standing at around 75%. Therefore, this labor market data is crucial for confirming these expectations.
In addition to the presidential election and labor data, the quarterly earnings reports of tech giants like Alphabet, Apple, Meta, Amazon, and Microsoft will also have an impact on the market. These companies are expected to see an average profit increase of around 19-20%, although this marks the slowest growth rate in the last six quarters. The influence of these upcoming reports on the stock markets remains uncertain, but they will undoubtedly serve as significant indicators for overall market sentiment. Furthermore, these results are also anticipated to have an impact on the cryptocurrency market.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research before making any investment decisions.
