Bitcoin holds near $78,300 as markets await US midterms and jobs data
Investors face a busy week of political and economic events, including all 435 US House seats up for election and central bank decisions in the UK and Europe.
Key takeaways
- 1Bitcoin fell from around $85,000 in early October to $78,299 on 2 November.
- 2US voters will choose candidates for 435 House seats and 35 Senate seats in midterm elections.
- 3US employers are expected to have added 60,000 jobs in October, with unemployment at 4.2 percent.
- 4Binance recorded $3.64 billion in net outflows after a $6.3 billion security breach on 29 October.
Bitcoin traded at $78,299 on 2 November as global crypto and equity markets entered a week featuring US midterm elections, key employment figures, and the continued fallout from a $6.3 billion hack on Binance. The cryptocurrency has dropped from around $85,000 at the start of October, matching a wider decline in stock markets where major technology shares have lost roughly $5 trillion in market value over the same period.
Coinpedia reported that political attention will focus on Tuesday, when voters in the United States choose candidates for all 435 seats in the House of Representatives and 35 seats in the Senate. The outcome will decide which party controls Congress and sets the direction for future cryptocurrency legislation, as well as parliamentary oversight of regulators including the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Economic data releases begin on Monday with the US ISM Manufacturing PMI for October, expected to rise to 54.8 from 54.5 in September, according to Coinpedia. On Tuesday, the US Job Openings and Labor Turnover Survey is projected to show 7.11 million open positions, up from 7.079 million previously. The ADP National Employment Report on Wednesday is expected to show 65,000 private-sector jobs added in October.
The main economic release will arrive on Friday with the official US employment report. Employers are expected to have added 60,000 non-farm jobs in October, up from 29,000 in September, while the unemployment rate is forecast to remain flat at 4.2 percent. In Europe, eurozone inflation is projected to rise to 3.9 percent for October, up from 3.8 percent in September, putting further pressure on the European Central Bank.
Central bank policy will also feature on Thursday when the Bank of England decides whether to raise its benchmark rate from 3.75 percent to 4 percent. Three of the nine policymakers on the bank's Monetary Policy Committee voted for a quarter-point rate increase at their previous meeting in September.
In crypto markets, sentiment remains muted following the security breach at Binance. Earlier reporting by YourKhabri showed the exchange suffered $3.64 billion in net outflows after reopening withdrawals following a $6.3 billion hack on 29 October. The US Secret Service and the FBI are investigating the breach, while stablecoin issuer Tether froze $971 million in connected funds. The Crypto Fear & Greed Index fell to 30 following the breach, down from its 30-day average of 56.
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Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.