Betting markets also showed investors leaning more towards a Donald Trump presidency over Kamala Harris, which presents a better regulatory outlook for crypto.
Bitcoin tracked strong gains in global stock markets after stronger-than-expected U.S. nonfarm payrolls data quashed fears of a U.S. recession. But the reading also diminished expectations for deep interest rate cuts by the Federal Reserve.
Bitcoin rose 2.7% to $63,558.3 by 00:41 ET (04:41 GMT).
Crypto betting platform Polymarket showed traders pricing in a 50.6% chance of a Trump victory in the 2024 U.S. elections, compared to 48.4% for Harris.
The shift towards Trump comes after the former President held a rally at Butler, Pennsylvania- where he was subject to an assassination attempt earlier this year. Tesla Inc (NASDAQ:TSLA) CEO Elon Musk also made an appearance at the rally, endorsing Trump.
Trump has presented a pro-crypto stance in his campaigning efforts, and also accepts donations in crypto. He has also promised to enact crypto-friendly regulations if elected.
Harris, on the other hand, has offered no insight into her stance on crypto, and is expected to potentially continue the Biden administration’s crackdown against the sector.
Broader crypto markets rose on Monday, tracking gains in Bitcoin and as risk sentiment improved.
World no.2 crypto Ether rose 3% to $2,487.07, while altcoins SOL, XRP and ADA rose between 2.3% and 5%. MATIC was flat, while DOGE rose 4.7%.
Further gains in crypto were held back as the dollar rebounded on expectations of smaller interest rate cuts.
Focus this week is on more cues on the U.S. economy, after stronger-than-expected nonfarm payrolls data last week saw traders wipe out bets on a 50 basis point rate cut. Traders were seen pricing in an over 90% chance for a 25 bps cut in November, and were also seen pricing in a higher terminal rate, according to CME Fedwatch.
A slew of Fed officials are set to speak in the coming days, while the minutes of the Fed’s September meeting are due this week.
Consumer price index inflation data is also due this week, and is likely to factor into the Fed’s outlook on rates.
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