As the U.S. presidential election approaches on November 5, the price of Bitcoin is poised for significant fluctuations, with potential swings of at least 10% contingent on the election outcome. Recent market activity has heightened Bitcoin ’s volatility, reaching its highest levels in three months. The ongoing uncertainty surrounding the election has contributed to this increased trading volatility.
Bitcoin is currently trading at approximately $68,682, reflecting a 0.5% decline over the past 24 hours, according to CoinMarketCap data. Market analysts have noted that Bitcoin approached new all-time highs last week, peaking at $74,649 on October 29 before experiencing a sharp sell-off due to election jitters. The volatility index for Bitcoin hit a new three-month peak on November 3, indicating rising trader uncertainty.
Analysts emphasize the importance of Bitcoin breaking through the critical resistance level of $74,000. A successful breakout could signal a bullish trend, potentially propelling Bitcoin toward the $80,000 level. Conversely, if Bitcoin fails to maintain support above $65,000, it may indicate a retreat to a longer-term downtrend, disappointing traders who had hoped for a continuation of recent gains.
Market sentiment heading into the election remains cautiously optimistic, with a general belief in the bullish potential of riskier assets like cryptocurrencies. Many analysts suggest that irrespective of the winning candidate, favorable conditions exist for future price increases.
Former President Donald Trump is generally considered more favorable for the cryptocurrency sector, having articulated plans to support innovation within the industry. In contrast, Vice President Kamala Harris has only recently indicated a more tepid approach to digital assets, focusing on broader investments in artificial intelligence.
Additionally, the expectation of continued interest rate cuts by the U.S. Federal Reserve may bolster Bitcoin and other cryptocurrencies. Lower rates could make traditional safe investments like time deposits less attractive, driving more capital towards digital assets.
