Bitcoin at a crossroads: how the US election will affect its price

Bitcoin at a crossroads: how the US election will affect its price

Cryptocurrency investors should prepare for increased volatility. It is expected that the price of Bitcoin could swing at least 10% "in either direction" depending on the outcome of the November 5 election. As the latest analysis suggests, Bitcoin volatility has reached its highest level in three months in recent days, suggesting that this period will be fraught with tension for investors.

Pseudonymous trader Daan Crypto Trades, who has more than 389,000 followers on the X (formerly Twitter) platform, pointed out in his post that the current Bitcoin price of around $68,682 suggests a 0.5% decline in the last 24 hours. "The weekly close didn't look great, but the upcoming election should have a defining effect on the price," the trader added.

On Oct. 29, Bitcoin nearly touched an all-time high when the price rose to $74,649, but soon after, there was a sharp drop due to election uncertainty. IG Markets analyst Tony Sycamore said that Bitcoin will need to break the resistance level at $74,000 to confirm the uptrend. If the price breaks below $65,000, it could signal a return to the seven-month downtrend.

Although the market faces these pitfalls, the attitudes of cryptocurrency experts remain optimistic. With the positioning of risky assets, a bullish trend is currently inflecting, regardless of which candidate eventually becomes president. Donald Trump, known for his favorable stance towards cryptocurrencies, is seen as the candidate who could boost the market in the short term. On the other hand, Kamala Harris has finally started mentioning cryptocurrencies and has promised to support investment in digital assets.

In addition to election factors, the market is also watching to see what direction the US Federal Reserve will take. With an expected interest rate cut announced on September 18, there is speculation that further rate cuts could have a positive effect on the cryptocurrency market. Investments in safer assets such as time deposits are becoming less attractive, which could boost interest in cryptocurrencies.

In this dynamic environment, it is clear that investors should closely monitor not only the election, but also the broader economic context and market sentiment. Any changes can result in significant price swings, so it is important to be prepared for quick reactions. Bitcoin once again finds itself at a crossroads and its path requires attention especially in the coming days.

*This is not investment advice.

The Coingarage team