QCP sees US elections sparking crypto market volatility

QCP Capital’s latest market update emphasises the potential impact of the upcoming U.S. elections on cryptocurrency markets, specifically Bitcoin (CRYPTO:BTC). 

With just two weeks left before the elections, analysts at QCP highlight increased market volatility driven by the potential outcomes. 

According to QCP’s analysis, the electoral race, which currently shows Donald Trump leading Kamala Harris in betting markets, could shape new economic policies and investor sentiment. 

The market report suggests that a possible Trump presidency might lead to economic strategies such as increased tariffs and tax cuts. 

This could trigger a rally in the U.S. dollar, causing bond yields to rise. 

Analysts also pointed out Trump’s reportedly more favorable stance on cryptocurrencies, noting that Bitcoin’s current upward movement aligns with this environment. 

The digital asset is nearing the $69,000 mark, bolstered by record levels of open interest on exchanges, which QCP reports to be around $40.5 billion. 

QCP’s analysts link Bitcoin’s performance to anticipated changes in U.S. economic policy. 

The report notes that markets are already pricing in expectations of 1.5 interest rate cuts in 2024, reflecting investors’ positioning ahead of potential monetary policy shifts. 

Additionally, the QCP update draws attention to the upcoming Non-Farm Payrolls (NFP) report, which is set to be released next Friday. 

According to QCP analysts, this will be the final labor market report before the Federal Reserve’s next meeting. 

They stress that the report could play a crucial role in shaping expectations for the Fed’s next move on interest rates, increasing uncertainty and potential market shifts. 

“All eyes are on the NFP release next Friday as uncertainty around the labor market persists,” the analysts stated, highlighting its significance for market participants amid ongoing economic and political developments in the U.S.