Short-term developments
On the evening of October 21, 2024, Bitcoin had a drop of nearly 2.5k after the rise of more than 2 weeks, along with a slight adjustment of 3-5% in Altcoins. The recent plunge has brought the Bitcoin price back to the area to fill the CME gap around the $67K region.
This is also quite understandable as on the larger timeframe Bitcoin has not yet been able to break through the psychological resistance level of $70k and still needs to accumulate around this area to break through the resistance, so there will be volatility around this area. Traders have mostly prepared themselves psychologically for short-term adjustments, as the liquidation of short orders will exceed $50 million when Bitcoin returns to the 69K$ region.
Long-term developments
In the short term, we will need to see accumulation around this peak area to confirm that the Bull side has returned to push the price, along with other fundamental signals confirming like Mint at this time to drive the price. However, in the long term, Bitcoin still has a lot of room for further growth, especially with the upcoming election, as Bitcoin prices have shown growth after each election cycle.
Analysis of the 2016 election: Donald Trump vs. Hillary Clinton
The 2016 US presidential election marked a significant turning point for Bitcoin. At that time, the Bitcoin price fluctuated between $700-800, and the market capitalization exceeded $12 billion. After Donald Trump was elected, the uncertainty in global financial markets drove increased interest in alternative assets like Bitcoin. By the end of 2016, due to concerns about economic policies and institutional investor interest, the Bitcoin price rose to nearly $1,000.
Analysis of the 2020 election: Joe Biden vs. Donald Trump
The 2020 election took place against the backdrop of the COVID-19 pandemic and economic instability. The Bitcoin price fluctuated between $13,000-$15,000 during the election week. After the election, the Bitcoin price rose sharply, reaching nearly $20,000 by the end of 2020. This growth was driven by financial stimulus measures and increasing institutional acceptance of Bitcoin.
2024: Bitcoin as a safe haven?
With the 2024 US election approaching, Bitcoin is seen as a safe haven asset for investors. In the context of economic and political instability, particularly the US-China tensions and the financial crisis in Argentina, Bitcoin may continue to be used as a hedge against inflation and currency devaluation.
