As the United States gears up for the presidential election, analysts predict Bitcoin ’s value may see significant gains regardless of the election’s outcome. This expectation is notably championed by the chief investment officer of a prominent crypto hedge fund. Historically, critical events, such as Bitcoin ’s halving in April, have tended to bolster its price during the fourth quarter, creating a favorable backdrop for potential gains.
The ongoing U.S. election cycle is characterized by a conspicuous absence of discussion surrounding national debts and deficits from both major political parties. This neglect may inadvertently support Bitcoin ’s bullish outlook, especially following the elections. Previous presidential elections have seen Bitcoin thrive amidst uncertainty, with analysts suggesting similar trends are likely to occur again.
Data consistently indicates that Bitcoin often experiences substantial price increases in the fourth quarter, with notable increases of over 50% observed on multiple occasions since 2013. Specifically, the last halving event in 2020 was marked by an astonishing 168% rally during the final quarter, coinciding with the last U.S. presidential election.
In addition, the recent interest rate adjustments by the Federal Reserve may also enhance Bitcoin ’s appeal. A suggested 50 basis point cut could lead to a positive sentiment towards Bitcoin and other risk-on assets, provided the economy navigates a “soft landing.” Such an outcome could create a strong correlation between Bitcoin ’s price and the NASDAQ index.
Currently, Bitcoin ’s trading price is set at approximately $64,400, experiencing a slight decline over the past day, according to CoinMarketCap data. Analysts remain optimistic about its future trajectory and potential to reach new all-time highs in the coming months as interest in the cryptocurrency continues to grow.
