Bitcoin Price Today: Rises to $63K on Payrolls Optimism and Election Outlook

Bitcoin’s price increased on Monday, continuing a rebound from the weekend as signs of resilience in the U.S. economy bolstered investor confidence in broader risk assets.

Betting markets indicated that investors are increasingly favoring a potential Donald Trump presidency over Kamala Harris, which could lead to a more favorable regulatory environment for cryptocurrencies.

Bitcoin’s rise mirrored strong gains in global stock markets, driven by better-than-expected U.S. nonfarm payrolls data that alleviated concerns about a recession. However, this data also tempered expectations for significant interest rate cuts from the Federal Reserve. Bitcoin climbed 2.7% to $63,558.3 by 00:41 ET.

According to traders on a crypto betting platform, there is a 50.6% probability of a Trump victory in the 2024 U.S. elections, compared to 48.4% for Harris. This shift towards Trump follows a rally he held in Butler, Pennsylvania, where he had previously faced an assassination attempt. Elon Musk, CEO of Tesla, also attended the rally and endorsed Trump.

Trump has adopted a pro-cryptocurrency stance in his campaign, accepting cryptocurrency donations and promising to implement crypto-friendly regulations if elected. In contrast, Harris has not provided clear insights into her views on cryptocurrencies and may continue the Biden administration’s regulatory approach towards the sector.

Broader cryptocurrency markets saw gains on Monday as sentiment improved. The second-largest cryptocurrency, Ether, rose 3% to $2,487.07, while other altcoins such as SOL, XRP, and ADA experienced increases between 2.3% and 5%. MATIC remained steady, and DOGE rose 4.7%.

Despite these gains, further increases in cryptocurrencies faced pressure as the dollar rebounded due to expectations of smaller interest rate cuts. This week, attention is focused on additional economic indicators following last week’s stronger-than-expected nonfarm payrolls, which led traders to reassess their bets on a significant rate cut. Expectations are currently leaning towards a more than 90% chance of a 25 basis point rate cut in November, alongside a higher terminal rate.

Numerous Federal Reserve officials are scheduled to speak in the coming days, and the minutes from the Fed’s September meeting will be released this week. Additionally, consumer price index inflation data will be released, which is expected to influence the Fed’s outlook on interest rates.