Trump vs. Harris Debate Sparks Caution Among Crypto Traders Ahead of Key Economic Data Release

As the U.S. presidential campaign heats up, the upcoming debate between Republican nominee Donald Trump and Democratic nominee Kamala Harris is getting a lot of attention. Scheduled for Tuesday, this debate could impact various sectors, especially the cryptocurrency markets.

The economic policies of both candidates will be a big focus. Trump plans to cut taxes and reduce government spending. On the other hand, Harris wants to raise taxes on the wealthy and support small businesses.

With many voters worried about the economy and Trump leading in the polls, this debate might shape opinions and market reactions.

Crypto traders are particularly alert to the potential volatility that could arise from this debate. The market has already shown caution following a recent dip that raised concerns among investors.

“Crypto has stabilized after last week’s fluctuations, but implied volumes remain high. It seems the market is bracing for some volatility as we head into this week’s events, especially the Trump vs. Harris debate,” noted QCP Capital.

The timing is crucial. Markets will also be watching key economic data, particularly the U.S. Consumer Price Index (CPI) report, which is due out the day after the debate. With the Federal Reserve considering rate cuts at their next meeting, any signals from the CPI could influence market trends and add to the volatility in both traditional and crypto assets.

According to QCP Capital, traders are keeping a close eye on Bitcoin and Ethereum. Risk reversals are leaning towards puts, showing caution about potential downside risks. Despite the uncertainties in the short term, long-term traders remain optimistic. They see this as a chance to buy as volatility continues.