Oct 7 2024: Bitcoin extended its weekend rebound on Monday, driven by positive U.S. economic data that boosted risk appetite across markets.
In addition, betting markets showed a growing preference for a Donald Trump presidency over Kamala Harris, as a potential Trump administration is seen as more favorable for cryptocurrency regulation.
Bitcoin’s price followed strong global stock market gains after last week’s U.S. nonfarm payrolls report exceeded expectations, alleviating fears of a recession. However, the robust data also tempered hopes for significant interest rate cuts by the Federal Reserve.
By 00:41 ET (04:41 GMT), Bitcoin had risen 2.7% to $63,558.3.
Trump Leads Harris in Betting Markets – Polymarket Data Crypto betting platform Polymarket indicated that traders are pricing in a 50.6% chance of Donald Trump winning the 2024 U.S. presidential election, compared to a 48.4% chance for Vice President Kamala Harris.
This shift in sentiment comes after Trump held a rally in Butler, Pennsylvania, where he survived an assassination attempt earlier this year. Tesla CEO Elon Musk attended the event, publicly endorsing Trump.
Trump has embraced a pro-crypto platform during his campaign, accepting donations in cryptocurrency and promising to introduce crypto-friendly regulations if elected.
In contrast, Kamala Harris has not provided a clear stance on cryptocurrency, with expectations that she would likely continue the Biden administration’s regulatory crackdown on the sector.
Broader Crypto Market Rises as Interest Rate Speculation Builds On Monday, the broader cryptocurrency market followed Bitcoin’s upward trend as risk sentiment improved. Ethereum, the world’s second-largest cryptocurrency, gained 3%, reaching $2,487.07, while altcoins such as SOL, XRP, and ADA saw gains ranging from 2.3% to 5%. MATIC remained stable, while DOGE surged 4.7%.
However, further gains in crypto were capped as the U.S. dollar strengthened, driven by lower expectations for deep interest rate cuts.
Attention now turns to more economic cues this week. Following the strong U.S. payrolls data, traders have significantly reduced their bets on a 50 basis point rate cut, now assigning a 90% probability to a smaller 25 basis point cut in November. Additionally, a higher terminal interest rate is being priced in, according to CME FedWatch.
Key events this week include speeches from several Federal Reserve officials and the release of the minutes from the Fed’s September meeting. The upcoming Consumer Price Index (CPI) inflation data is also likely to play a critical role in shaping the Fed’s future rate decisions.
