Bitcoin continues to hover without reaching expected highs, yet optimism persists as consolidation occurs at elevated price points. With prices now consistently above $60,000, traders are eagerly watching for a breakout as election day approaches. What insights do market experts at QCP Capital provide?
Recent Market Review
In a recent market update, QCP Capital noted the release of Core PCE data, which slightly exceeded market expectations. Although the Non-Farm Payroll figures fell short, anticipated adjustments due to recent hurricanes may mitigate their impact on the market.
“Core PCE data came in at 2.7%, above the expected 2.6%. Meanwhile, Non-Farm Payroll numbers disappointed with just 12,000 new jobs, well below the anticipated 110,000, resulting in the DXY regaining the 104 level.”
Despite the disappointing payroll figures, the unemployment rate held steady at 4.1%, increasing the likelihood of a 25 basis point rate cut in November to 96.4%.
Stock market losses were offset by Amazon’s strong earnings report on Friday. Treasury yields initially fell but climbed back to a four-month high, a typical reaction before elections.
Will Investors See Gains in Cryptocurrencies?
With recent market activities, can cryptocurrencies expect a rise? Notably, $2.1 billion flowed into ETFs this week, with BlackRock garnering $872 million in a single day, signaling strong interest from professional traders.
The market remains vibrant; even with Bitcoin dipping below $69,000, both BTC futures and options saw considerable open interest at $40.65 billion and $25.3 billion, respectively.
- Bitcoin’s 7-day implied volatility stands at 74.4%, indicating heightened risk as elections approach.
- Predictions for Trump’s victory have decreased, reflecting ongoing electoral uncertainty.
- A sell-off is expected post-elections, similar to reactions observed at the Nashville Bitcoin conference.
Market participants remain cautious, with expectations for minimal movement following election results. The intricate relationship between market dynamics and political events continues to shape trader strategies.