Trumps Dealings Revive Bitcoin Returns to 70000 Milestone
The three major US stock indexes closed slightly higher yesterday, while US bonds continued to be under pressure. Bitcoin briefly rose to $70,270, and with the increasing momentum of Trump, the atmosphere of betting on the “Trump trade” seems to be getting stronger.
TSMC plummeted by 4%, Trump trade reemerges
Huawei is suspected of obtaining TSMC chips through a proxy, and with Trump mentioning again on a program yesterday that “Taiwan stole 95% of the chip business but wants US protection and needs to pay protection fees,” TSMC ADR fell by more than 4%.
(Market reaction to increased chances of Trump’s victory: Is Bitcoin also part of the “Trump trade”?)
The market seems to be more optimistic about Trump’s re-election, with the three major US stock indexes closing slightly higher and US bonds continuing to be under pressure. The 10-year yield reached a high of 4.3%, and Bitcoin briefly rose to $70,270, with Trump’s social media company rising by 22%.
Bitcoin returns to the $70,000 mark
Yesterday, Bitcoin once again challenged the $70,000 level, reaching as high as $70,270. Ryan Lee, chief analyst at Bitget Research, believes that the price of Bitcoin may soar before the US election on November 5th. He also mentioned that Trump’s recent interview on Joe Rogan Experience has garnered over 32 million views, raising his Polymarket odds to over 66%. However, analysts from QCP Capital stated that although cryptocurrencies are related to the “Trump trade,” the correlation between Bitcoin and Trump’s chances of winning seems to be weakening. The analysts warned that regardless of the winner, Bitcoin may experience a sell-off in the days following the election results.
(Bitcoin expected to soar before the US election, but may experience a sell-off afterwards)
Important data and super earnings week ahead
This week will see the release of numerous heavyweight earnings reports, including the seven tech giants Apple, Microsoft, Amazon, Google, and Meta, which are the focus of attention. In addition, the earnings reports of MicroStrategy (MSTR) and the exchange Coinbase (COIN) will also be released after the US stock market closes on Wednesday this week.
On the economic data front, the US Department of Commerce will release the third-quarter GDP estimate on Wednesday, the core personal consumption expenditure price index (PCE) on Thursday, and non-farm employment data on Friday.
The market will continue to evaluate the possibility of a “soft landing” for the US economy. As the US election enters its final countdown, it is causing tension among investors.
