Earlier this week Bitcoin and markets as a whole rocketed, fueled by momentum from the upcoming U.S. Presidential Election. Bitcoin was even on the verge of hitting $70k on Monday!
Then, some Fed officials hinted this week that they may be done cutting rates, expressing caution and an inclination to wait until more economic data comes out.
In short, they’re afraid that cutting rates too fast may cause inflation to come back, but at the same time, not cutting rates deep enough could lead to higher unemployment and a potential recession.
This caused Bitcoin to drop all the way to $65.5k, though it looks like its price has recovered over the last 24 hours.
This time around, the resurgence in markets was caused by Tesla’s monster earnings report, in which Elon Musk predicted a 30% rise in car sales next year.
Tesla’s stock price jumped by 22% from the strong guidance, and markets edged slightly up, with the S&P 500 rising 0.2%, the NASDAQ 100 rising 0.8%, and Bitcoin climbing back up to the $68-69k range.
With everything that’s happened this week and continued volatility leading up to the U.S. Presidential Election, we lay out the essentials for you to watch out for:
Reasons to be Bullish
- Current rate cuts continue to stimulate economy at a healthy rate, driving confidence in stocks, crypto, and other risk-on assets
- General optimism fueled by upcoming change in U.S. Presidential administration
- Continued institutional investment in Bitcoin and other major cryptocurrencies via ETFs
- Strong corporate earnings season, as seen by Tesla’s 22% rally
Reasons to be Bearish
- Inflation could rear its ugly head again if rates are cut too fast, overheating the economy
- On the other end, unemployment and other signs of a recession could spike if rates aren’t cut deep enough
- Potential expanded conflict in the Middle East, causing oil to spike
- Weak corporate earnings season
Are you bullish or bearish?
Tell us and let us know why in the comments below – we want to hear from you!
Want to read other market insights? Check out past articles here, or subscribe to our newsletter via this link!
Our aim is to create a platform that offers users the most enjoyable trading experience. If you have any feedback, please reach out to us at support@btse.com or on X @BTSE_Official.
Disclaimer: BTSE blog content is intended solely to provide varying insights and perspectives. It does not constitute financial, legal, or investment advice and should not be relied upon as such. The views expressed are not necessarily those of BTSE. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Trading involves substantial risk due to market volatility, and past performance is not indicative of future results. Always trade with caution and consider seeking advice from a qualified professional before making any financial decisions.
