Will U.S. Elections Drive Bitcoin’s Surge or Prompt a Sell-Off?

With the U.S. elections approaching, analysts are speculating that Bitcoin's price might see a significant rise, although there are concerns about a potential sell-off following the election results on November 5.

Edouard Hindi, Chief Investment Officer at Tyr Capital, noted that profit-taking could impact Bitcoin’s price in the aftermath of the election. He suggested that while volatility is expected, strong support might emerge below $60,000, and he remains positive about Bitcoin’s long-term trajectory, anticipating a comeback in 2024.

Echoing these insights, Ryan Lee, Chief Analyst at Bitget Research, pointed to favorable conditions for Bitcoin as Americans gear up to vote. He highlighted the Federal Reserve’s anticipated interest rate cut on November 7, two days after the election, as a key factor that could bolster Bitcoin’s rally.

This cut, projected to reduce rates to 4.5% to 4.75%, reflects the Fed’s aim to foster economic stability. Lee emphasized that the election outcome, particularly if a pro-Bitcoin candidate emerges victorious, will significantly influence Bitcoin’s direction.

Additionally, Lee mentioned an important upcoming event: Microsoft’s board will vote in early December on a proposal to invest in Bitcoin. This decision could greatly affect market sentiment. He warned that a rejection of the proposal might dampen enthusiasm for Bitcoin, while approval could ignite a notable market rally.

For the upcoming week, Lee forecasts Bitcoin to trade between $66,000 and $75,000, with Ethereum expected to range from $2,350 to $3,200. He also noted that enhanced liquidity could lead to increased activity in altcoins.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.