Bitcoin Price Rebound

Bitcoin’s price rose on Monday, extending a weekend rebound as signs of resilience in the U.S. economy bolstered broader risk appetite.

Political Landscape

Betting markets indicated a preference for a Donald Trump presidency over Kamala Harris, suggesting a better regulatory outlook for crypto.

Bitcoin followed strong gains in global stock markets following robust U.S. nonfarm payrolls data, alleviating recession fears but lowering expectations for significant interest rate cuts by the Federal Reserve.

Bitcoin increased by 2.7%, reaching $63,558.30 by 00:41 ET (04:41 GMT).

Trump vs. Harris in 2024 Elections

Crypto betting platform Polymarket indicated traders are pricing in a 50.6% chance of a Trump victory compared to 48.4% for Harris.

This shift followed a rally in Butler, Pennsylvania, where Trump had survived an assassination attempt earlier this year. Tesla CEO Elon Musk supported Trump during the rally.

Trump promotes a pro-crypto agenda and accepts crypto donations, promising crypto-friendly regulations if elected. In contrast, Harris has not disclosed her crypto stance and may continue the Biden administration’s regulatory scrutiny.

Altcoin Trends

The broader crypto market also rose, following Bitcoin’s gains as risk sentiment improved.

World’s second-largest crypto, Ether, rose 3% to $2,487.07, while altcoins SOL, XRP, and ADA saw increases between 2.3% and 5%. MATIC remained flat, and DOGE rose 4.7%.

Crypto gains were tempered by a rebound in the dollar amid expectations of limited interest rate cuts.

Economic Focus

This week, focus is on further U.S. economic cues, following last week’s surprising nonfarm payroll results. Traders have reduced bets on a 50 basis point rate cut, now pricing over 90% for a 25 basis point cut in November and expecting a higher terminal rate, according to CME Fedwatch.

A number of Federal Reserve officials will be speaking soon, and the minutes from the Fed’s September meeting are forthcoming. Consumer price index inflation data is also expected this week, influencing the Fed’s rating outlook.