Bitcoin is anticipated to experience increased price volatility following the U.S. presidential election, with many analysts interpreting this potential fluctuation as a beneficial factor for its future pricing. As the election day commenced, Bitcoin (BTC) was trading below its notable all-time high of $69,000, reflecting a period of low volatility that indicates a hesitance in market sentiment as investors await election outcomes.
Analysts from Bitfinex suggest that a rise in Bitcoin ’s volatility could signal a positive trend for its price movement. They point out that if the expected fluctuations fail to occur, it could imply that more significant issues are at play, potentially leading to deeper corrections in Bitcoin ’s lower timeframes. Furthermore, they mention that a lack of price movement may illustrate a bearish sentiment within the options market.
The outcome of the election may also have contrasting impacts on Bitcoin ’s performance, particularly if former President Donald Trump emerges victorious. Trump is typically viewed as a cryptocurrency-friendly figure, and a victory for him could spark a new rally in Bitcoin . However, a similar upward trajectory is anticipated even if Vice President Kamala Harris wins, driven by expectations of favorable regulatory changes. Analysts note that market sentiment appears to lean towards a Trump victory, which could amplify any ensuing Bitcoin surge.
Looking ahead, there could be a shift in how Bitcoin is perceived in relation to election outcomes. The recent rally in anticipation of Trump’s electoral rise has been dubbed by some as a “Trump pump,” but analysts warn that this phenomenon might wane post-election.
In the meantime, the altcoin market is forecasted to experience further declines independent of the election results. Bitfinex analysts expressed concerns about the diminishing interest among investors, which suggests that recovery in the altcoin sector may remain subdued without a strong catalyst for growth.
