The FOMC meeting, the US election, and the unemployment claims report may influence this week’s Bitcoin volatility.
Source: beincrypto.com
Key Points:
- The outcome of the US election may influence the volatility of the Bitcoin market.
- Thursday’s unemployment claims report could change investor sentiment.
- A FOMC rate cut is expected, which might boost Bitcoin’s value.
US Elections: Donald Trump vs. Kamala Harris
The US election is getting closer to the conclusion. The political battle between Democratic candidate Kamala Harris and Republican candidate Donald Trump is nearing its end. The US elections are just hours away. According to data on Polymarket, Trump is leading with a slim margin.
Source: ETV Bharat
However, Trump leads by 60.9% compared to Harris’ 39.1% in Kalshi, Polymarket’s industry counterpart in the prediction market, which has a nearly the same margin. The aberrations in the client bases of distinctive platforms are reflected in this difference. Analysts predict Bitcoin will have a turbulent day.
The outcome of the US election may have a big impact on investor sentiment, regulatory frameworks, and economic policies. The election winner will decide on cryptocurrency policies. The price of Bitcoin may fluctuate because of these regulations. The sentiment might affect other cryptocurrency tokens as well.
Important Economic Indicators and the Federal Reserve’s Rate Decision
Apart from the election, everyone is eagerly awaiting the Federal Reserve’s rate announcement on Thursday. Analysts predict a drop of about 0.25 basis points. This scenario has a 98% chance, according to CME’s Fed Watch tool. Jerome Powell’s remarks after the Fed meeting will shed further light on prospective rate changes or economic stimulus. The Fed’s monetary policy signals are being keenly monitored by market participants. These indications may influence investor opinion regarding risky assets like Bitcoin.
FOMC Interest Rate Cut Probabilities. Source: CME Fed Watchtool
Initial Claims of Unemployment: Labor Market Index
Aside from the US elections, crypto markets will watch the initial jobless claims on Thursday, November 7. This economic data helps determine whether the labor market in the United States is tight or soft.
The number of new unemployment insurance applications submitted by US citizens decreased from 228,000 to 216,000 during the week ending October 25. A consensus prediction of 220,000 exists.
The Thursday report’s high first jobless claims point to a deteriorating labor market and growing economic distress. Consumer spending and investments in conventional assets like stocks and bonds may decline. As a result, as a hedge against economic instability, some investors might look to alternative assets like cryptocurrency.
