Bitcoin Expected to Surge Before the US Election but Potential Selloff Afterwards
Bitcoin Reaches $70,000 Again Ahead of U.S. Elections
Bitcoin surged back to the $70,000 mark last night, with analysts predicting that the price may rise as the U.S. elections on November 5 approach; however, selling pressure may follow.
Bitcoin Set to Soar Before the Elections
According to The Block, multiple analysts believe that Bitcoin’s price could spike before the U.S. elections on November 5, although they caution that regardless of the outcome, there may be a sell-off in the days following the announcement of the results. Edouard Hindi, Chief Investment Officer at Tyr Capital, suggests that profit-taking selling pressure may impact Bitcoin’s price shortly after the election results are revealed, but buyers looking for bargains should support the price above $60,000. Regardless of the election outcome, Bitcoin may regain momentum in the mid-term and aim for new highs in 2024. Ryan Lee, Chief Analyst at Bitget Research, also emphasized that as the U.S. prepares for voting next Tuesday, Bitcoin’s price is expected to rise significantly over the coming week. He believes several factors support the potential increase in Bitcoin, particularly the expectations surrounding Federal Reserve interest rate cuts. The market widely anticipates that the Fed will cut rates by 25 basis points on November 7, bringing the rate to a range of 4.5% to 4.75% to stabilize economic growth.
Potential Selling Pressure for Bitcoin
Lee also highlighted that upcoming events could impact market dynamics after the U.S. elections. For instance, Microsoft’s board is set to vote on investing in Bitcoin, with a “Bitcoin Investment Assessment” to be voted on during the annual shareholder meeting on December 10. If the board votes against investing in Bitcoin, it could dampen market enthusiasm and hinder Bitcoin’s growth; conversely, a decision to invest could trigger a significant market rally. Lee predicts with a 70% confidence interval that Bitcoin’s trading price next week could range between $66,000 and $75,000, while Ethereum’s trading price may fall between $2,350 and $3,200. He also mentioned that improved liquidity could lead to increased activity in altcoins. Additionally, he referenced Trump’s recent interview on the Joe Rogan Experience, which has garnered over 32 million views, boosting his Polymarket odds to over 66%. However, analysts at QCP Capital noted that while cryptocurrencies are associated with “Trump trades,” the correlation between Bitcoin and Trump’s odds seems to be weakening.
