Bit coin returned to the 70,000 mark last night, and analysts estimate that as the US election on November 5 approaches, the price of Bit coin may rise; however, there may be selling pressure afterwards.
(The Trump trade is back, and Bit coin returns to the 70,000 mark)
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ToggleBit coin will soar before the election
According to The Block, several analysts believe that the price of Bit coin may surge before the US election on November 5, but the analysts warn that regardless of who wins, Bit coin may see a sell-off in the days following the announcement of the results.
Edouard Hindi, Chief Investment Officer of Tyr Capital, believes that the selling pressure from profit-taking in the days after the election results are announced may put pressure on the price of Bit coin, but bargain hunters should be able to keep the support price above $60,000. But regardless of the election outcome, Bit coin is likely to regain momentum in the medium term and attempt to set new highs in 2024.
Ryan Lee, Chief Analyst at Bitget Research, also emphasizes that with the US set to vote next Tuesday, Bit coin prices are expected to rise sharply in the next week.
He believes that there are several factors supporting the potential rise of Bit coin, particularly the expectation of interest rate cuts by the Federal Reserve. The market generally expects the Federal Reserve to cut interest rates by 25 basis points on November 7, lowering the rate to the 4.5% to 4.75% range, to stabilize economic growth.
Potential selling pressure on Bit coin
Lee also emphasizes that upcoming events may affect market dynamics after the US election. For example, the Microsoft board is about to vote on investing in Bit coin, and Microsoft will hold a vote on "Bit coin investment assessment" at its annual shareholder meeting on 12/10.
If the board votes against investing in Bit coin, it could dampen market enthusiasm and hinder the growth of Bit coin, while if Microsoft decides to invest, it could trigger a significant market rally.
Lee predicts with a 70% confidence interval that Bit coin's trading price next week may be between $66,000 and $75,000, and Ether's trading price may be between $2,350 and $3,200. He also said that improved liquidity could lead to increased Altcoin activity.
He also mentioned that Donald Trump's recent interview on the Joe Rogan Experience has received over 32 million views, raising his Polymarket odds to over 66%. However, QCP Capital analysts say that while cryptocurrencies are related to the "Trump trade", the correlation between Bit coin and Trump's odds seems to be weakening.
