QCP Capital: The US election and interest rate cut expectations are good for the crypto market, pay attention to the non-farm data next Friday

On October 23rd, Singaporean crypto investment firm QCP Capital stated that with only two weeks left until the US election, it is currently receiving a lot of attention. In the prediction market, Trump has begun to expand his lead over Harris, and the current opinion polls in key swing states also lean towards the Republican Party. The market is currently pricing in the possibility of Trump being elected president. Discussions about imposing tariffs and reducing taxes have led to a strengthening of the US dollar and an increase in US Treasury yields. Given Trump's more friendly stance towards cryptocurrencies, it is not surprising that the trading price of Bitcoin has risen.

The S&P 500 index continues to reach historic highs, and the US 2-year Treasury yield has once again exceeded 4%. With the unprecedented amount of open interest in exchanges, Bitcoin has approached $69,000. The total open interest in exchange futures currently stands at $40.5 billion. The market is currently expecting a 1.5 rate cut in 2024. The stronger-than-expected labor market and the increased likelihood of Trump being elected president have reignited hopes for sustained strong economic growth in the US. Due to the continued uncertainty in the labor market, everyone's attention is focused on the non-farm payroll report (NFP) to be released next Friday before the election. As the last NFP report before the next Fed meeting, it will play a key role in shaping market expectations for the Fed's next interest rate action. Before the release of employment data and the election, Bitcoin and Ethereum are still well supported and have potential for further growth.