Hedge fund executive predicts: Bitcoin will hit a record high in the fourth quarter, regardless of the outcome of the US election

Hedge fund executives predict that regardless of the outcome of the US election, BTC will hit a new all-time high in the fourth quarter of 2024. CK Zheng, co-founder of the crypto hedge fund ZX Squared Capital, made a bold prediction about BTC (BTC), forecasting that this leading cryptocurrency will reach a new all-time high in the fourth quarter of 2024, regardless of the outcome of the upcoming US presidential election. In an interview with Cointelegraph, CK Zheng emphasized that neither of the two main candidates has proposed viable solutions to address the US's growing national debt and fiscal deficit, and he believes this situation will drive the bullish sentiment for BTC. CK Zheng's prediction is consistent with historical trends, which show that BTC experiences significant price increases in the fourth quarter. According to CoinGlass data, BTC has risen more than 50% in the last quarter since 2013, a pattern that has occurred six times. With the confluence of macroeconomic factors and favorable market conditions, the hedge fund executive believes that BTC will break its previous all-time high by the end of 2024 or shortly after. The uncertainty surrounding the election and concerns about the US economy are driving the positive outlook for BTC. CK Zheng pointed out that neither candidate has proposed a concrete plan to address the country's debt and deficit issues, and these problems are likely to continue to worsen regardless of who takes office. As US debt continues to grow, investors may increasingly view BTC as a store of value and a hedge against traditional financial instability. CK Zheng explained that BTC's decentralized nature makes it an attractive safe-haven asset during periods of macroeconomic uncertainty. He believes that the unresolved debt issues and potential economic turmoil in the US will drive more investors to use BTC as a hedge against inflation and fiat currency devaluation. The strong historical performance of BTC in the fourth quarter supports CK Zheng's bullish view. According to CoinGlass, BTC has experienced significant price increases in the last quarter, with the cryptocurrency rising more than 50% in the final quarter of the year six times since 2013. The seasonal rally in the fourth quarter has become a recurring trend in the BTC market, driven by factors such as institutional allocations at the end of the year, renewed retail interest, and a generally optimistic market sentiment. CK Zheng expects 2024 to be no exception, with favorable macroeconomic conditions providing additional momentum. Another key factor driving CK Zheng's positive outlook for BTC is the Federal Reserve's monetary policy. In its efforts to address economic challenges and curb inflation, the Federal Open Market Committee (FOMC) has made multiple adjustments to interest rates. Recently, the Federal Reserve implemented a 50-basis-point rate cut, which many analysts, including CK Zheng, believe could be very beneficial for BTC and other risk assets. CK Zheng explained that if the US economy achieves a "soft landing" - avoiding a severe recession while controlling inflation - BTC may benefit. The rate cuts are aimed at stimulating economic activity, which could drive more investors towards riskier assets like BTC, as lower interest rates would reduce the appeal of traditional savings tools. While elections often trigger market volatility, CK Zheng believes the outcome of the 2024 US presidential election will have limited impact on the long-term trajectory of BTC. Regardless of who wins, the unresolved debt and deficit issues are likely to persist, providing a favorable environment for BTC as a decentralized asset. CK Zheng emphasized that the broader macroeconomic landscape is the driving force behind BTC's performance, rather than political leadership. "BTC's operation is independent of political outcomes. The bigger issue is the US economy, and neither candidate has put forth a clear path forward to address the fiscal issues. That's why I believe BTC will hit a new all-time high regardless of who wins the election." Despite the positive outlook, there are potential risks that could impact BTC's fourth-quarter performance. Regulatory uncertainty remains an important factor, as US lawmakers and international regulators are increasingly focused on cryptocurrencies. New policies or regulatory developments could introduce short-term volatility in the crypto market. Additionally, the global macroeconomic environment may pose challenges. While the Federal Reserve's rate cuts are expected to buoy risk assets, unforeseen economic shocks (such as geopolitical tensions or further economic slowdown) could alter the landscape. CK Zheng acknowledges these risks but remains confident in BTC's long-term prospects: "Every asset faces risks, but BTC has proven to be resilient. It continues to attract institutional investor interest and has become a reliable hedge against economic instability." As the US presidential election approaches and economic uncertainty continues to rise, BTC may be poised to reach new all-time highs. The unresolved debt issues, the favorable historical trends in the fourth quarter, and the Federal Reserve's monetary policy all point to a positive outlook for BTC. While the political outcome may not directly impact BTC's long-term performance, the broader macroeconomic factors could drive investors towards decentralized assets. With BTC's strong fourth-quarter performance and favorable economic conditions, the cryptocurrency is well-positioned for a significant price surge in the coming months.