With just two weeks until the U.S. Presidential elections, market activity intensifies. Former President Donald Trump surpasses Kamala Harris in betting markets, with Republicans gaining momentum in key states. Markets are beginning to price in the possibility of a Trump victory, with discussions around his more favorable stance towards cryptocurrencies and tax cuts gaining traction. Notably, the U.S. dollar strengthens, and treasury yields rise, contributing to Bitcoin’s upward momentum.
U.S. Markets Rally Towards New Highs
The stock market in the U.S. experiences vibrant days. The S&P 500 index moves toward new peaks, while the yield on 2-year Treasury bonds has again surpassed the 4% mark. Additionally, the open interest in Bitcoin 
$77,293 futures reaches a record level.
The total open interest in the markets has ballooned to $40.5 billion. The price of the leading cryptocurrency climbs to $69,000, influenced by these developments.
Expectations for a 1.5 basis point interest rate cut in 2024 are strengthening. Stronger-than-expected employment data in the U.S. and Trump’s increasing presidential chances enhance growth hopes for the economy. However, investors are particularly focused on the upcoming Non-Farm Payroll data, which will play a crucial role in shaping interest rate expectations ahead of the next Fed meeting.
Interest Rate Cut Expectations
The market’s expectation of interest rate cuts fosters an optimistic environment in the cryptocurrency sector. Trump’s potential adoption of more cryptocurrency-friendly policies and promises of tax reductions bolster interest in Bitcoin and other cryptocurrencies. Rising U.S. Treasury yields, the appreciating dollar, and anticipated growth under Trump’s leadership significantly impact the markets.
Amid these developments, investors are keenly focusing on upcoming data releases and U.S. election outcomes. The announcement of the Non-Farm Payroll data could increase market volatility and shift expectations regarding interest rate cuts.
