Bitcoin’s recent price movements have caught the attention of traders. The leading cryptocurrency saw an 8% increase, surpassing the $73,000 mark, which caused excitement among investors. Although Bitcoin has since slightly retreated, it is currently being traded around $72,000.
There are several factors contributing to Bitcoin’s rise in price. These include the strong demand for spot Bitcoin ETFs in the United States, the initiation of a new monetary expansion cycle in major economies, and the increasing chances of a crypto-friendly candidate, Donald Trump, in the upcoming U.S. presidential elections.
It is believed that critical states in the U.S., such as Nevada and Pennsylvania, will have a significant influence on the outcome of the election. As the presidential race approaches its conclusion next week, the market is curious to see if the momentum, known as the “Trump Trade,” will continue or if unexpected developments will arise.
The upcoming release of non-farm payroll data, which is a crucial indicator of the U.S. labor market, will provide clarity on the expectations of a Fed rate cut. Market expectations suggest an employment increase of around 110,000, which is approximately half of the previous reported figure. The data released on Friday will shape market expectations for a rate cut ahead of the Federal Reserve (Fed) meeting next week. 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%. The labor market data is crucial in confirming these expectations.
This week, tech giants like Alphabet, Apple, Meta, Amazon, and Microsoft will announce their quarterly earnings reports. These companies are expected to see an average profit increase of around 19-20%, marking the slowest growth rate in the last six quarters. The impact of these upcoming earnings reports on the stock markets remains uncertain, but they will serve as significant indicators for overall market sentiment. Additionally, these results are expected to influence 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.
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