The Battle for Financial Dominance
How the BRICS Challenge, USD Strength, and U.S. Elections Shape Market Movements and Bitcoin’s Future
The financial markets have been experiencing a lot of volatility recently due to a number of factors, including changes in geopolitical power, monetary policy choices, and election politics. Implications for Bitcoin’s (BTC) domination, the rising BRICS nations’ power, the dollar’s (DXY) continued strength, and the 2024 U.S. presidential election are at the heart of this continuing narrative.
This article delves into the complex relationships between these factors and evaluates how they might affect market movements this weekend and beyond.
An Effort to De-Dollarize the BRICS Clash
Brazil, Russia, India, China, and South Africa (now joined by Egypt, Ethiopia, Iran, and the UAE) recently made a strong push toward de-dollarization during the BRICS conference in Kazan, Russia. Ideas for new payment methods that don’t rely on the US dollar were front and center in the talks. By creating a blockchain-based payment system similar to SWIFT, the BRICS nations hope to reduce their reliance on the dollar, especially in international trade
Geopolitical Tensions with Financial Shifts
Bull Markets and the Political Economy Report.
In light of the growing economic and political dominance of the United States, especially in the wake of sanctions imposed on Russia, the BRICS has decided to expand. Other countries are looking for ways to avoid economic isolation as a result of Western nations’ use of the dollar-dominated SWIFT system for geopolitical purposes. This change is more than just symbolic; it may indicate a change in the global financial power dynamic.
Dollar Strength: Strategic Responses to Global Changes
In October 2024, the Dollar Index (DXY) appreciated more than 3%, demonstrating that the US dollar remained resilient in the face of de-dollarization rhetoric from BRICS. A solid job market and relatively high interest rates established by the Federal Reserve are among the strong points in the US economic data that have contributed to this strength.(source :Excalibur Empire. )
The domestic and foreign goals of the Biden administration’s dollar strength preservation initiatives are complementary. On the home front, a higher DXY keeps consumer confidence up and import prices down, which helps to curb inflation. In the face of mounting international uncertainty, it is a show of economic strength and stability.
Some have even speculated that the Federal Reserve and the U.S. Treasury are deliberately bolstering the dollar in an effort to combat the rising power of the BRICS countries. Keeping the dollar strong demonstrates faith in the American financial system at a period when the idea of de-dollarization is gaining momentum on a global scale. This might also act as a buffer against the possibility that the BRICS projects will interrupt the flow of capital.
Trump vs. Biden in the US Elections and How the Market Feels About It
Market mood is getting more and more entangled with political narratives as the 2024 U.S. presidential election draws near. Cryptocurrency advocates, including those who see Bitcoin and other digital assets as potential replacements for more conventional forms of money, have rallied around former President Trump. The Biden administration favored a strong dollar and conventional banking regulations, in stark contrast to Trump’s support for cryptocurrency.
The Bull Markets and the Political Economy Report.
With a Trump administration in the White House, Bitcoin and other digital assets may see more favorable regulations, which could boost their usage and value. On the other hand, Bitcoin may face short-term challenges from the Biden administration’s cautious attitude to cryptocurrency regulation and their emphasis on preserving the dollar’s dominance.
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The Weekend Market Movements and Bitcoin’s Dominance
For traders, the correlation between Bitcoin’s and USDT’s (Tether) market dominance is now a crucial signal. An growth in USDT dominance has historically been a symptom of market risk aversion, as capital has sought refuge in stablecoins such as Tether. According to recent market research, Bitcoin is pushed lower as USDT dominance increases. This pattern has been observed during times when the dollar has been strong.( If USD decline due to some unforeseen events ,then there could be some drastic changes to the market ,from Past election results , the stock exchange will usually decline if the present ruling administration wins and its likely to decline month on month in 2025 )
Additionally, the present market conditions may suggest that Bitcoin may have a retreat over the weekend, as USDT is displaying bullish swings and testing lower channel boundaries. Investors may be putting pressure on Bitcoin’s dominance because due to the high DXY, as they seek stability in the face of uncertainty. Bitcoin ( $62k to 69k range ) may find it difficult to acquire traction if this trend persists and traditional assets and safe-haven currencies, such as the USD, maintain their strength.
Consequences for International Markets
Global financial rivalry is becoming more apparent as a result of the United States’ deliberate actions to maintain the value of its currency and the persistent attempts by the BRICS to undermine that supremacy. Euro, Japanese yen, and Chinese yuan, among other major global currencies, are immediately affected by this dynamic. Considering the necessity to strike a balance between domestic economic difficulties and a robust USD, the ECB’s policy decisions are likely to be subject to increased scrutiny. At the same time, the dovish monetary policy and slow inflation rates in Japan are keeping the yen weak.
One of the most prominent BRICS members, China, is making strides to lessen its reliance on the currency. The value of the Yuan has not been significantly affected by these changes just yet due to internal economic difficulties. With the support of the US economy’s resiliency and deliberate policy moves, the USD has remained firmly entrenched despite these efforts.
Making Sense of a Challenging Financial Environment
The peculiar financial scenario of late 2024 is the result of geopolitical developments, election politics, and market dynamics all coming together. Even if the BRICS nations are calling for a dollar devaluation, the United States seems determined to keep the currency strong so it can continue to dominate the global economy. Meanwhile, competing predictions for the dollar’s and cryptocurrency’s futures in the upcoming US election further complicate matters.
Keeping abreast of these events is the most important thing for traders and investors to remember. Changes in the relative importance of USDT, a strong DXY, and developing political storylines are all factors that could impact Bitcoin’s short-term prospects. Bitcoin and other digital assets may continue to experience wild swings this coming weekend as market sentiment and policy actions by countries and central banks take center stage as the United States attempts to portray stability among global concerns.
How well the United States is able to maintain the dollar’s dominant position in global banking and how far the BRICS bloc’s attempts to de-dollarize go will be decided in the next weeks. Investors should keep an eye on political events happening in the run-up to the election and signals from the ECB, the Bank of Japan, and the Federal Reserve.
The BRICS challenge, the strength of the USD, Bitcoin’s supremacy, and the political dynamics in the US all interact in complex ways, highlighting the complexity of today’s financial markets. With this knowledge in hand, investors will be better able to weather the storm of a changing global landscape and grab opportunities when they arise.
How the stock market will respond to non-farm data by early November, which will coincide with the US election, and that we should note this because Bitcoin is within the channel. Looking into the possibility that November’s non-farm results will put pressure on the Feds to further plan their interest rate cut, or that the results will shift the USD’s direction. If the former is true, the USD could hold up until next Friday, and Bitcoin could move in a $62–$69K channel. This is assuming, of course, that 70% of election forecasts affirm a positive win for Trump.
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An important component in the decision-making process for the Federal Reserve’s interest rate trajectory is the forthcoming Nonfarm Payroll (NFP) data release scheduled for early November. Estimates for the number of new jobs added by analysts are hovering around 140,000, which is a small decrease from earlier months. They expect the unemployment rate to stay at 4.2%. Additional interest rate reduction, maybe ranging from 25 to 50 basis points, could be considered by the Federal Reserve if data shows a slowdown in employment creation.( Source Benzinga, Financial Juice.)
The stock market and the value of the US dollar are both susceptible to market volatility, which might be triggered by nonfarm payrolls data that indicates a weaker labor market. Traders are anticipating more aggressive easing measures, which might lead to a decline in the value of the dollar, if the non-farm payrolls report is sluggish. But in light of recent political events and worldwide economic uncertainty, such as the approaching U.S. elections, a stronger-than-expected NFP report would further strengthen the dollar. In case ,we missed, the market does not react much after Iran was attacked this morning , vice versa , If Iran response within the week ,It may caused the market to be dumped and as the present Iran’s Administration dislike Trump , they may choose a day that disfavor DJT ’s strategies to the WH .
Market dynamics over the weekend and into early November might be shaped by changes in the strength of the dollar and risk sentiment for Bitcoin, which is trading within a $62K to $69K band. The Federal Reserve may lower interest rates in response to weaker-than-expected non-farm payrolls statistics, which would weaken the dollar and give Bitcoin (BTC) a boost as it tests the upper limits of its trading range. Given Trump’s pro-crypto position, however, extra speculative buying could happen if 70% of election forecasts favor him, perhaps driving Bitcoin above its present range. ( Source :Benzinga, Financial Juice)
Bitcoin and the financial market as a whole are susceptible to fluctuations in all three of these factors: political results, economic data, and policies enacted by central banks.
Disclaimer :
The information provided here is for informational purposes only and should not be considered financial, legal, or investment advice. All opinions and analyses expressed are based on available data and market insights but may not reflect all factors or recent developments. Always conduct your own research or consult with a professional before making any financial decisions.
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