Bitcoin breaks through $71,000 to challenge previous high! Analysts warn of post-election sell-off

The US presidential election on November 5 is getting closer, and the Bit price also showed a significant increase last night, returning to the $70,000 mark after several months, but analysts warn that regardless of the election result, there may be a sell-off in the days after the election results are announced due to profit-taking.

Potential Decline After Election

Edouard Hindi, Chief Investment Officer of Tyr Capital, said in an interview with the foreign media The Block:

"The profit-taking after the results are announced may put downward pressure on the Bit price, but the support at below $60,000 should still be strong."

However, Edouard Hindi added that regardless of the election result, Bit is likely to regain momentum in the medium term and set a new high in 2024. On the other hand, Ryan Lee, Chief Analyst at Bitget Research, also pointed out that with the approach of the US election, Bit will see significant growth.

"Multiple factors support the potential upside of Bit, especially the expected rate cut by the Federal Reserve. The market generally expects a 25-basis-point rate cut on November 7, lowering the rate to the range of 4.5% to 4.75%, reflecting the need to adjust for stable economic growth."

Ryan Lee emphasized that the two-day gap between the US election and the Federal Reserve's interest rate decision may have a significant impact on the Bit price.

"The direction of this impact will depend on whether a candidate supportive of Bit wins."

Other Factors Affecting Bit

In addition, Ryan Lee also said that events such as "whether Microsoft shareholders vote to invest in Bit" may continue to affect market dynamics after the election.

Microsoft has included "evaluating investment in Bit" in the agenda of its 2024 annual shareholder meeting, which is expected to be held in early December. If the board votes against investing in Bit, it may dampen market enthusiasm and hinder the growth of Bit. Conversely, if Microsoft decides to invest, it may trigger a significant upward movement in the market.

Ryan Lee predicts that the trading price of Bit in the next week may be between about $66,000 and $75,000, with a confidence level of 70%, and Ethereum may fluctuate between $2,350 and $3,200. He also pointed out that the improvement in liquidity may increase the activity of Altcoins.