Bitcoin Could Swing 10% In Either Direction Based On U.S. Election Results
2024-11-04 13:40:02
Crypto investors should brace for heightened volatility around the U.S. election, as traders and analysts forecast a Bitcoin move of at least 10%.
Source: theconversation.com
Bitcoin’s price could potentially swing by at least 10% depending on which U.S. presidential candidate wins on Nov. 5, according to crypto trader Daan Crypto Trades. This potential for increased volatility comes as Bitcoin's price fluctuations recently spiked to a three-month high. On Nov. 4, Daan Crypto Trades shared with his 389,000 followers on X that Bitcoin is currently trading at $68,682, down 0.5% in the past 24 hours, reflecting growing uncertainty and market anticipation around the election results.
Adding to this, Bitcoin’s volatility index climbed to its highest point in three months on Nov. 3, as reported by the crypto derivatives exchange, signaling that major price shifts may be ahead. Last week, Bitcoin nearly broke its all-time high, briefly reaching $74,649 on Oct. 29. However, it sharply declined soon after, largely due to concerns about the upcoming election and its potential impact on the market.
In a Nov. 4 investment note, Tony Sycamore, an analyst at IG Markets, wrote that for Bitcoin to sustain its uptrend, it would need to break above its $74,000 resistance level. Such a move could pave the way for a sharp rally toward $80,000. Sycamore warned, however, that if Bitcoin falls below its $65,000 support level, this could signal a failure of the recent rally and likely drive the asset back into its seven month downward trend channel.
Despite the volatility, the general sentiment surrounding Bitcoin as the election approaches is optimistic, with many market analysts predicting a bullish phase for risk assets. Analysts suggest that Trump’s victory could be particularly favorable for Bitcoin and other cryptocurrencies in the short term, as he has made several pledges to foster innovation in the U.S. crypto sector, aiming to position the country as a global leader in digital assets.
On the other hand, candidate Harris has largely avoided discussing cryptocurrency directly. She only briefly mentioned the sector on Sept. 22, when she outlined a plan to support investments in artificial intelligence and digital assets more broadly, suggesting a less focused approach toward crypto compared to Trump’s platform.
Beyond the immediate impact of the election, crypto market participants are closely watching the U.S. Federal Reserve, which recently implemented a 50 basis point rate cut on Sept. 18. Many expect further rate cuts, a trend that tends to be bullish for cryptocurrencies. Lower interest rates generally make traditional investments like term deposits less attractive, potentially encouraging more capital to flow into digital assets. Overall, the combination of the U.S. election outcome, Federal Reserve policy, and Bitcoin's recent volatility suggests that crypto investors may face heightened price swings and significant opportunities for gains in the coming days.
Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.