Cryptocurrency analytics firm QCP Capital has released its latest market assessment, highlighting the significant impact of the upcoming US elections on financial markets.
Political Landscape Ahead of Elections
With just two weeks until the US election, QCP Capital noted that former President Donald Trump has gained momentum over Vice President Kamala Harris in prediction markets, prompting markets to consider the possibility of a Trump presidency.
Impact on Financial Markets
Discussions around increased tariffs and potential tax cuts under the Trump administration have fueled a rally in the US dollar, and US bond yields have risen. The benchmark 2-year US Treasury yield has once again breached the 4% mark. In this context, Bitcoin is gaining upward momentum.
Implications for Cryptocurrencies
QCP Capital noted that Bitcoin's recent push toward $69,000 was supported by a record $40.5 billion in open interest on exchanges with futures contracts.
Markets are closely watching economic reports, such as the Nonfarm Payrolls report, which could play a decisive role in shaping the Fed’s stance on interest rates and further developments in the financial and cryptocurrency markets.