Bitcoins Market Hangs in the Balance as U.S. Election Results Loom
- Bitcoin price is poised for volatility as investors closely watch the U.S. election outcome and potential market impact.
- Rover suggest a Trump win may boost BTC, while a Harris victory could prompt a temporary dip in prices.
- Historical election trends show Bitcoin rallies post-election, with 2016 and 2020 seeing gains of 2,700% and 400%.
Bitcoin observers and crypto investors are waiting for the U.S. presidential election and its repercussions in the market. In the latest video on YouTube, Crypto Rover explained that Bitcoin is at a tipping point and that the volatility will depend on the election outcome. While millions of Americans are voting today, the cryptocurrency market might experience large fluctuations in response to investors perception of the impact of the election on economic and legal policies.
Election Impact on Bitcoin Trends
According to Rover, Bitcoin may have a different reaction depending on the outcome of the election. Looking at past election data, Bitcoin is usually red ahead of the election but green after the election. If Donald Trump is to emerge the winner, then there is high possibility that Bitcoin will surge due to policies that have been expected by investors. Alternatively, a Kamala Harris victory may cause a short-term rout due to investor nervousness, but the market may rebound once policies start being rolled out.
Source: Image by CryptoRover
In the short term, BTC is still ranging, with some price drops and the creation of lower highs. However, signals of potential breakout include divergence on technical charts which may occur once the post-election volatility is over. In the previous years after the 2016 and 2020 elections, Bitcoin had entered a bullish trend in the subsequent months, thereby raising hope that the same would happen in 2024.
Source: Chart by CryptoRover
Election-Driven Market Moves
Previous elections have been a trigger to BTC price increases. For example, after the 2016 election, BTC rose by 2,700%, and after the 2020 election, it appreciated by 400% due to changes in economic conditions. If history is to repeat itself with Bitcoin, it may hit a new high in 2024 within 400 days of the election.
Source: Chart by CryptoRover
Underlying this optimism, major financial players are increasingly being involved in the Bitcoin market. BlackRock has also purchased $38 million in BTC even as $540 million was withdrawn from other ETFs. This trend suggests that institutional investors may have a long term view of BTC and its potential given the current short-term political risk.
Traders should pay close attention to betting markets and political risks, which are highly associated with cryptocurrency prices. As Trumps chances have improved, the coin generally went up and any sign of him losing tends to cause a price drop. This pattern shows how the cryptocurrency market is sensitive to US politics.
Over the next 36 to 72 hours as election results come in, analysts believe that there will be large fluctuations in the BTC price. The clear winner can define the strong market movement making a path for a new rally or a short-term pull back depending on the sentiment of investors.
Read more: https://www.tronweekly.com/bitcoins-market-hangs-in-the-balance-as/
Text source: TronWeekly
