Bitcoin to move 10% ‘either direction’ depending on US election: Trader

As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market fluctuations and unpredictable events. The upcoming US presidential election, scheduled for Nov. 5, is one such event that could potentially sway the price of Bitcoin by at least 10%.


Based on a trader’s assertion, the value of Bitcoin may fluctuate by up to 10% following the U.S. presidential election results announced on November 5th, since Bitcoin’s volatility has spiked to its peak level in the past three months.

On November 4th, an anonymous trader known as Daan Crypto Trades expressed his thoughts to his 389,000 followers in a post. He mentioned that Bitcoin’s (BTC) weekly close was not particularly neat but added that it wouldn’t have much impact in the context of an upcoming election.

Rather than making an outright statement, he hinted that it’s likely Bitcoin could experience “a shift of at least 10%, whether it’s a rise or fall, based on the outcome of the upcoming election.

Bitcoin to move 10% ‘either direction’ depending on US election: Trader

Bitcoin is currently changing hands for $68,682, down 0.5% in the last 24 hours.

On November 3, the volatility of Bitcoin reached a fresh three-month peak, as indicated by data from the cryptocurrency derivatives exchange Derebit.

Last week, Bitcoin almost set a fresh record high, momentarily peaking at $74,649 on October 29th, but then plunged significantly due to election-related uncertainties.

According to a November 4th investment report seen by CryptoMoon, analyst Tony Sycamore from IG Markets stated that for Bitcoin to validate an upward trend and potentially surge towards $80,000, it must first surpass the resistance level of $74,000 consistently.

Sycamore advises traders to exercise caution, as dropping significantly below Bitcoin’s support level of $65,000 could indicate that the recent surge in price has been unsuccessful. This might cause the digital currency to revert back to its seven-month pattern of decline.

Bitcoin to move 10% ‘either direction’ depending on US election: Trader

As we approach the election, there’s a general feeling of positivity about Bitcoin. Financial analysts see a growing upward trend in risky assets and point to numerous favorable factors, regardless of who wins on November 3rd.

In simpler terms, it’s generally believed that President Trump, who seems supportive of cryptocurrencies, could potentially boost the value of digital assets in the near future. This is because Trump has pledged to nurture and safeguard the growth of the U.S. crypto industry.

Instead, Harris had refrained from directly discussing cryptocurrency until September 22. On this day, she briefly expressed that her administration aims to foster investments in artificial intelligence and digital assets.

Beyond the election, investors generally expect the U.S. Federal Reserve to persist with its policy of reducing interest rates further, given its 0.5% reduction on September 18.

Additional decreases in interest rates are generally viewed as positive for cryptocurrencies since they make them more attractive compared to safer investment options like term deposits, which may no longer be as appealing to investors.

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2024-11-04 04:34