As the November 2024 elections approach, Bitcoin is expected to rise amidst historical data and economic changes.
Bitcoin Performance in US Elections
It is crucial to be familiar with market movements before significant events. Policy changes by the Fed have often led to short and medium-term declines in risk markets. For instance, the Halving was noted as a factor pushing BTC prices to new highs. With the expected launch of the BTC ETF, Bitcoin broke all records even before the Halving occurred, rising more than $45,000. The upcoming significant event includes the US Presidential elections, which historically have caused BTC prices to rise.
US Labor Reports
According to the report released on Thursday, US employment has significantly weakened. Last month, the historical labor data cut pushed the Fed to make more explicit statements about rate cuts. Weakening labor markets pose a short-term threat to risk markets, especially due to their negative impact on tech companies. This weakening is one of the main reasons for the recent market negativity.
US Labor Market: Trends and Forecasts
According to the Challenger report, layoffs in US companies increased by 193% in August, reaching 75,891, compared to 25,885 layoffs announced in July. Tech companies announced 39,563 layoffs, the highest number in the last 20 months. Education companies announced 25,396 layoffs, up 222% from 2023, indicating a weakening labor market.
While the US Presidential elections have a significant impact on Bitcoin prices, the US labor market is also under pressure, creating a multi-layered picture of economic changes.
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