Originally published on: November 05, 2024
The future of Bitcoin’s price seems to be hanging in the balance as analysts suggest that the outcome of the 2024 US election could have a significant impact on the cryptocurrency’s value.
Currently trading at $69,000, Bitcoin’s price remains relatively stable, indicating a cautious market sentiment leading up to the election day. However, analysts at Bitfinex believe that an increase in volatility following the election results could actually benefit Bitcoin’s price trajectory.
According to Bitfinex analysts, a victory by former President Donald Trump, known for his pro-crypto stance, could pave the way for the next Bitcoin rally. Surprisingly, even if Vice President Kamala Harris emerges victorious, analysts at Sygnum believe that Bitcoin could still experience positive price movement.
The recent surge in Bitcoin’s price, with it coming just $200 shy of its all-time high, was dubbed a “Trump pump” by investors as it seemed to be closely tied to Trump’s increasing chances of winning the election. However, Bitfinex analysts caution that this rally might come to an end post-election, signaling a shift in market dynamics for Bitcoin.
While Bitcoin has been seen as a proxy for a potential Trump victory, analysts point out that the current rally lacks the necessary macroeconomic conditions to propel Bitcoin to new all-time highs.
Looking beyond Bitcoin, the altcoin market is expected to face more downside, especially for tokens outside the top 10. Despite expectations of an altcoin season, analysts predict that potential returns could be weaker compared to previous market rallies.
In conclusion, the outcome of the 2024 US election could hold significant implications for Bitcoin’s price trajectory. Keep an eye on the market as developments unfold post-election to gauge the impact on the cryptocurrency landscape.
