Originally published on: September 30, 2024
As the United States presidential election looms, Bitcoin investors are set to reap the rewards regardless of the election result, according to the chief investment officer of ZX Squared Capital.
Historically, Bitcoin’s price performance in the fourth quarter has been influenced by the April halving event, leading to significant gains. CK Zheng of ZX Squared Capital pointed out that neither US presidential candidate has addressed a crucial issue that could benefit Bitcoin in the upcoming months.
Previous US presidential elections have seen Bitcoin rally amidst uncertainties, and Zheng believes this trend will continue in the current election cycle.
Data from CoinGlass reveals that Bitcoin has surged more than 50% in the fourth quarter six times since 2013, with halving events further boosting these gains. In 2020, Bitcoin rallied 168% in the fourth quarter, coinciding with the last US presidential election.
Zheng is optimistic about Bitcoin hitting a new all-time high in the coming quarter or shortly after. However, Samantha Yap, CEO of Web3 PR firm YAP, noted that the price rise resulting from Bitcoin rallies may not be the most exciting aspect.
The recent “aggressive” 50 basis point interest rate cut by the Federal Reserve could also prove bullish for Bitcoin and risk-on assets if the US economy achieves a “soft landing,” according to Zheng.
With liquidity slowly returning to the market, Bitcoin’s narrative as a hedge against macroeconomic instability and “digital gold” is gaining traction, attracting institutional capital amid volatile traditional markets.
Despite trading at $64,400, down 2% in the last 24 hours, experts remain bullish on Bitcoin’s price performance in the upcoming months. Don’t miss out on the latest insights and analysis on cryptocurrency by subscribing to the Cointelegraph Research Newsletter.
