Market Overview

On Monday (October 14th), U.S. stocks ended the day with gains across all three major indices. Stock futures also saw slight increases. Gold remained stable at around $2,666 per ounce, while oil prices dropped to $71.7 per barrel.

The stock market has shown increased activity, especially in large-cap stocks like Nvidia. Nvidia, the third-largest company by market capitalization after Apple and gold, has seen its stock surge over 178% year-to-date. Despite its massive size, Nvidia remains volatile, but the overall trend has been bullish.

Bitcoin surged to $65,700, with most altcoins following suit. The total crypto market cap reached $2.395 trillion. The U.S. Bitcoin and Ethereum spot ETFs also saw large inflows, with BTC ETFs attracting $555.9 million, led by funds like FBTC, BITB, and IBIT. ETH ETFs, meanwhile, saw $17 million in inflows.

FED Signals & Financial Markets

Federal Reserve Governor Christopher Waller signaled that future interest rate cuts would likely be less aggressive compared to the major actions in September. He expressed concerns that the U.S. economy might still be growing faster than desired, but reiterated the need for gradual rate reductions throughout next year.

U.S. Election Update and Crypto

Vice President Kamala Harris recently announced her support for cryptocurrencies and digital assets, aiming to capture the growing crypto voter base. A survey shows that over 20% of African American citizens own or have owned crypto, and Harris’s strategy is to appeal to this demographic, especially men, who may lean towards former President Donald Trump or abstain from voting.

While Harris expressed her support for crypto, she provided few specifics. On the other hand, Trump has maintained a consistent and clear pro-crypto stance. This could play a pivotal role in garnering support from the crypto community.

In addition to crypto, Harris proposed loans of up to $20,000 for minority entrepreneurs. Regardless of the election outcome, whether it's Trump or Harris who wins, government spending is likely to increase, which could lead to further devaluation of fiat currencies.

Bitcoin is positioned to thrive in such an economic and political climate. BlackRock CEO Larry Fink believes Bitcoin's market cap could grow to the size of the U.S. real estate market. Currently, the U.S. real estate market is valued at $47 trillion, while Bitcoin's market cap recently hit $1.3 trillion. BlackRock projects that Bitcoin could potentially reach a value of $2.38 million per BTC.

Similarly, Cathie Wood shares a bullish long-term outlook on Bitcoin. In a recent interview, she mentioned that global economic uncertainty only strengthens their conviction in Bitcoin’s future.

Former SEC Officials Join Crypto Firms

Several prominent former SEC officials have joined private firms serving crypto clients this year. Gurbir Grewal, former Director of Enforcement at the SEC, is now a partner at Milbank Law, representing clients like Binance in ongoing litigation. David Hirsch, former chief of the SEC's Crypto Assets and Cybersecurity Unit, has joined McGuire Woods LLP, advising clients on crypto-related legal issues. Ladan Stewart, who previously led lawsuits against Coinbase and Ripple, now works for White Case, assisting clients navigating SEC enforcement actions in the crypto space.

Other Noteworthy News:

• James Howells, a British IT engineer, is suing Newport Council for permission to excavate a landfill where he believes 8,000 Bitcoins, worth over $500 million today, were accidentally thrown away by his girlfriend over a decade ago. Initially, these Bitcoins were valued at only $130.
• Australia's first spot ETH ETF is set to begin trading this week. Managed by Monochrome Asset Management, the fund holds $176,600 in assets under management.
• Talos Trading, a crypto software provider, plans to double its workforce in the Asia-Pacific region, taking advantage of the regulatory clarity in markets like Hong Kong, Singapore, and Japan. The company is backed by major financial institutions like BNY Mellon, Citi, Wells Fargo, General Atlantic, and Strategic Capital.
• Tether's CEO, Paolo Ardoino, has expressed the company's willingness to undergo an audit by one of the Big Four to enhance transparency. However, he acknowledged the challenges of finding an audit firm due to strict U.S. regulations. Tether has been working with BDO for quarterly attestations, but a full audit remains necessary to address concerns over the company’s liquidity and asset backing.

Conclusion

The U.S. stock market and crypto markets have shown significant strength in the latest trading sessions. Although Harris has expressed support for crypto, her stance remains vague compared to Trump's more defined pro-crypto approach. Regardless of the election outcome, the future of Bitcoin and the broader crypto market looks bright, as political and economic factors continue to align in favor of the digital asset space.

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