Bitcoin on the rise amid US presidential race and expectations of a Fed rate cut

The bitcoin (BTC) exchange rate has shown impressive growth over the past few days, exceeding the mark of $73,000. Thus, the quotations increased by more than 8%. The main drivers of the price rally were significant injections into spot BTC-ETFs, new cycles of monetary policy easing in major economies, as well as the growing chances of a cryptocurrency-friendly candidate – Donald Trump – winning the U.S. presidential race.According to analysts at QCP Capital, the tycoon is gaining popularity in key “swing states” such as Nevada and Pennsylvania, which increases his chances of success in the elections that will conclude next week. Amid the growing interest in bitcoin and cryptocurrencies in general, investors expect the Trump Trade to continue if the billionaire wins. However, experts caution that the final days of the race may see unexpected events that could change the situation and urge to keep a close eye on the market.

Particular attention in the coming days is focused on Friday’s U.S. Non-Farm Payrolls (NFP) report, which will be an important indicator of the state of the U.S. labor market. According to forecasts, the number of new jobs will amount to 110 thousand, which is almost 2 times less than the previous figure. This report is the last one before the Fed meeting next week.

For now, markets are laying odds of a 1.6 point rate cut, with a 96.5% chance of a 25 basis point cut in November and a 75% chance of another similar action in December. Monetary policy easing could provide additional support to the cryptocurrency market.

In addition to political and macroeconomic factors, earnings reports from 5 major tech companies – Alphabet, Apple, Meta, Amazon and Microsoft – are expected this week. Each of them is projected to show an average revenue growth of 19-20%. However, the impact of these reports on the stock market remains uncertain.