US CPI and PPI inflation data

The latest US Consumer Price Index (CPI) and Producer Price Index (PPI) figures are due out on Wednesday and Thursday, respectively.

Below-expected inflation data could provide further impetus to the current rally in crypto markets.

Fed Chair Jerome Powell will also participate on Thursday in a panel titled "Global Outlook" at an event hosted by the Federal Reserve Bank of Dallas.
#bitcoin #fed #ipc $BTC

Bitcoin reaches a new all-time high of $89,900 as crypto markets celebrate Donald Trump's victory
Simon Peters, eToro analyst

Bitcoin has reached a new all-time high of $89,900, driven by Donald Trump's victory in the U.S. presidential elections, the Republican majority in the Senate, and their lead in the House of Representatives, where they are also about to achieve a majority.

With the presidency and Congress potentially secured in a 'clean sweep,' the initiatives proposed by Trump during his campaign to boost the crypto industry in the U.S. may face fewer obstacles and be easier to implement.

In addition to the rally in crypto assets after the elections, stocks related to the crypto sector, such as mining companies and proxies like MicroStrategy, positioned themselves as the best-performing assets in the stock markets following the election results.

Alongside the presidential election, the Federal Reserve in its latest meeting cut the target federal funds rate by 25 basis points, to a range of 4.50%-4.75%, providing further momentum to crypto asset prices.

With Bitcoin at all-time highs, we are now in a price discovery phase, and predicting the peak of this current rally is an unknown.

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The Fed lowered interest rates by 25 basis points, its second rate cut.

Despite two weeks filled with earnings, economic reports, and the U.S. elections, the Fed meeting did not add unnecessary uncertainty to the mix. Instead, Powell and company reminded investors of the strong economic foundation on which the United States continues to rely.

It is no surprise that Chairman Powell did everything possible to deflect questions and political speculation, reaffirming that the Fed is apolitical, as it should be. Investors should continue to trust in Powell's tenure as chairman of the Fed, given the progress that the committee has made on inflation without sacrificing the U.S. economy.

Powell did not comment on the possibility of the Fed cutting rates in December, which should not surprise investors. However, the Fed seems more comfortable with the labor market and the current U.S. economic context than it did a few months ago.

While many Americans may still be immersed in the emotions of the U.S. elections, it is time for investors to focus on the most significant drivers for the stock market, which include earnings, the economy, and Fed policy. At this moment, all three are moving in the right direction.

This content is for informational and educational purposes only and should not be considered as investment advice or a recommendation. Past performance is not an indication of future results. CFDs are leveraged products and carry a high risk to your capital

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The Crypto Market with Simon Peters, Analyst in Cryptoassets

Cryptoasset markets have experienced a downturn following Friday's weaker-than-expected employment data, as well as potential risk reduction by traders and investors due to uncertainty surrounding the presidential elections.

Polls so far show a tight race, with both candidates still battling for the undecided states.

While attention has focused on who will become the next president of the USA, American voters will also determine this week which parties will control each chamber of Congress.

If control of the House of Representatives and the Senate is divided, any new initiatives related to the U.S. crypto industry could be more challenging to pass.

However, a Republican or Democratic victory, coupled with a presidential win from the same party, could mean less resistance and, in turn, be positive for the future, as both presidential candidates have expressed their support for the U.S. cryptoasset and blockchain industry.

In addition to the U.S. presidential elections, markets will be watching the Federal Reserve meeting and the decision on interest rates.

Currently, markets anticipate a 25 basis point cut in the federal funds rate at Thursday's meeting.

However, the main focus will be on the subsequent press conference by the Fed Chair, where markets will seek more information about the Fed's next move regarding interest rates.

According to CME, markets currently expect another 25 basis point cut in the federal funds rate at the December meeting. Any language or suggestion from Powell that deviates from the current market expectations could cause volatility in both cryptoasset markets and traditional markets.

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U.S. Presidential Elections: Will it be Trump or Harris?

The outcome of the U.S. elections carries significant weight, as the winning candidate will set the tone for the coming years.

However, it remains difficult to gauge to what extent a president can truly influence GDP growth or the evolution of stock markets. More important than political leadership is the overall health of the economy, which currently places the U.S. in a relatively strong position. The Federal Reserve maintains broad flexibility to respond to unexpected events.

Although current risks increase vulnerability to disruptions, long-term prospects remain positive. Still, the economic impact of political decisions should not be underestimated.

At the center of this heated electoral debate lies fiscal policy, a key issue that sharply divides the candidates.

Republicans advocate for tax cuts to stimulate economic growth, and Trump proposes a drastic 60% tariff on Chinese imports, a risky measure with possible repercussions for American consumers.

In contrast, Democrats call for tax increases on the wealthy to address rising income inequality, a shift that could deeply affect sectors such as luxury goods, telecommunications, and financial services.

Trump's policies could favor the defense sector, while a victory for Harris could further highlight the healthcare sector.

Regarding energy policy, fossil fuels and renewable energy are in stark opposition, creating uncertainty for businesses. However, there is bipartisan consensus on the urgent need to invest in American infrastructure and the importance of maintaining technological leadership against China.

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