US Economic Events Set to Drive Bitcoin Sentiment This Week

The United States is choosing a new leader and expectations of a rate cut might all impact the price of Bitcoin

Bitcoin (BTC) is trading at $68,588.91 after reaching $72,300 this past week. The flagship cryptocurrency will likely bag more gains in the coming weeks, considering that Q4 has historically marked a bullish season for Bitcoin. However, the sentiment surrounding this new week could drive the crypto market to extreme volatility.

There are three top United States economic events with the potential to change the narrative. 

Pro-crypto President For Americans and Crypto 

The United States election, involving Republican presidential candidate Donald Trump and Democrats Kamala Harris, is only a few hours away. One of the politicians is already leading based on Polymarket data. Significantly, several Americans are looking forward to the coming of a pro-crypto leader. They hope that the crypto regulatory landscape in the region will improve. 

The results of the elections will generally impact economic policy, regulatory environments, and investor sentiment. If it goes as expected, the BTC price may see its next rally, which would eventually ripple to other digital currencies. 

Unemployment Data in The US

Data about the jobless claims are expected to be published by Thursday. This economic data is crucial to gauging the tightness or softness of the labor market in the United States. To a significant extent, the job market has softened, but unemployment rates remain low. The number of US citizens filing new applications for unemployment insurance summed up to 216,000 last week.

The record stood at 228,000 the previous week, but analysts say there is a consensus forecast of 220,000. Should Thursday’s report come with high initial jobless claims, it could decrease consumer spending and investment in traditional assets like stocks and bonds. Cryptocurrencies may become the more endearing alternative, particularly as a hedge.

Federal Reserve Interest Rate Cut and Bitcoin 

On the same Thursday, the speech of United States Federal Reserve chairman Jerome Powell is expected. This is after the minutes from the last meeting of the Federal Open Market Committee (FOMC) are released. There is speculation that the Fed Reserve will announce a new interest rate cut. 

Recall that an interest rate cut of 50 basis points was announced during the last meeting held in September. Another 25-basis-point cut is expected from this upcoming meeting, a move that could make Bitcoin more attractive. Ultimately, SpotOnChain sees Bitcoin hitting $100,000 before this year ends.

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