Bitcoin is on the brink of a rally that could push it to new highs, but investors may need to be patient until the U.S. presidential race concludes. In October, the leading cryptocurrency rose by 10%, closing above $70,000 for the first time since March, though it recently dropped to 6% below its all-time high. The focus is now on the election, with potential volatility affecting prices beyond the November 5 vote. Nic Puckrin, CEO of Coin Bureau, notes that the election results will likely drive market movements, with Bitcoin gaining traction if Donald Trump, seen as a pro-crypto candidate, wins. Conversely, Kamala Harris’s victory could bring uncertainty, as her stance on crypto is less clear. Despite political uncertainties, analysts believe Bitcoin has strong long-term prospects due to favorable supply and demand dynamics.
Devin Ryan from Citizens JMP highlights a bipartisan consensus towards fostering the crypto industry, suggesting any election outcome could ultimately be positive. Bitcoin’s price has been reacting to prediction markets, rising with Trump’s chances and falling when Harris has an edge. Historical trends show October and November are typically strong months for Bitcoin, with a notable price peak expected about 18 months after the last halving event.
Further supporting confidence, the iShares Bitcoin Trust ETF has experienced significant inflows, with more than $2 billion over the past week and a record-setting single-day influx. According to Chris Chung, CEO at Titan, these steady inflows into U.S. Bitcoin ETFs could sustain upward momentum. While volatility is decreasing as traders await election results, underlying fundamentals are solid, potentially absorbing any temporary market jitters caused by the electoral process.
Original Story https://www.cnbc.com/2024/11/03/bitcoins-november-rally-could-be-held-up-by-election-volatility.html
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