Market traders and analysts say investors should be prepared for the possibility of violent cryptocurrency fluctuations during the US election, as the US election result could cause BTC to rise or fall by around 10%.
According to cryptocurrency trader Daan Crypto Trades, after the US election, the BTC price will likely rise or fall by around 10%, depending on which presidential candidate wins. With BTC prices soaring to a three-month high, this volatility is becoming more likely. On November 4, Daan Crypto Trades posted on the X platform that the BTC trading price was $68,682, down 0.5% in the past 24 hours, reflecting growing market concerns about the uncertainty of the election results. Additionally, according to a report from a cryptocurrency derivatives exchange, the BTC volatility index rose to a three-month high on November 3, indicating that major changes in BTC prices may be imminent. Last week, BTC prices nearly broke their all-time high, briefly touching $74,649 on October 29. However, shortly after, concerns about the upcoming election and its potential impact on the market caused BTC prices to plummet. On November 4, IG Markets analyst Tony Sycamore wrote in an investment report that BTC needs to break through the $74,000 resistance level to maintain its upward trend, which could pave the way for a significant rise to $80,000. However, he also warned that if BTC prices fall below the $65,000 support level, it could signal the failure of the recent rebound and push the asset back into a downward trend seen seven months ago. Despite the large fluctuations in BTC prices, with the US election approaching, the market generally has an optimistic attitude towards BTC, and many market analysts predict that risk assets will enter a bullish phase. Some analysts believe that a Trump victory could be particularly beneficial for BTC and other cryptocurrencies in the short term, as he has repeatedly promised to promote innovation in the cryptocurrency field in the US and make the US a global leader in digital assets. On the other hand, US presidential candidate Harris has rarely discussed cryptocurrencies in public, only briefly mentioning them once on September 22 when she outlined a plan to support investments in artificial intelligence and digital assets, but her focus on cryptocurrencies is lower compared to Trump. Therefore, the outcome of the two candidates' campaigns will have different impacts on the cryptocurrency market. Lower interest rates typically reduce the attractiveness of traditional investments like time deposits, which could encourage more capital to flow into digital assets. Overall, the combination of the US election results, Federal Reserve policy, and recent BTC volatility suggests that cryptocurrency investors may face greater price volatility and significant upside opportunities in the coming days. In addition to the direct impact of the election, cryptocurrency market participants are also closely watching the Fed's recent moves, as the Fed directly cut interest rates by 50 basis points on September 18, and many expect the Fed to further cut rates in the near future, which would greatly benefit risk assets like cryptocurrencies, as lower interest rates typically reduce the attractiveness of traditional investments like time deposits, potentially encouraging more capital to flow into the digital asset market. In summary, the outcome of the US presidential election, Federal Reserve policy, and recent BTC volatility indicate that cryptocurrency investors may face increased price volatility and significant profit opportunities in the coming days.
