Bitcoin faces volatility amid U.S. election week, with the potential for a surge to $100,000 post-election.
Bitcoin declined over the weekend after nearing its all-time high, prompting some short-term traders to secure profits. The pullback brought the price down to nearly $67,000, yet market analysts remain confident in its longer-term trajectory.
Notably, on-chain insights provider Spot On Chain indicated that the market might be entering its most volatile week, fueled by the upcoming U.S. presidential election and the Federal Open Market Committee (FOMC) meeting.
Spot On Chain emphasized that historically, significant gains often follow U.S. elections. This trend suggests that regardless of whether Donald Trump or Kamala Harris secures the presidency, Bitcoin could maintain its upward trajectory, potentially reaching $100,000 by year-end.
Bitcoin Historical Trends Post-Election
A review of past election periods supports the potential for significant price movements. Ali Martinez, a well-known analyst, examined Bitcoin’s trends after the last three presidential elections, suggesting that similar outcomes could be expected this time.
In 2012, Bitcoin’s price, which started below $12, skyrocketed to $1,137, reflecting an increase of more than 10,640%. The surge showcased how election periods could trigger exponential growth.
Here is a closer look https://t.co/xxlC4nrkEL
— Ali (@ali_charts) November 4, 2024
The 2016 election period demonstrated another steep upward trend. Bitcoin began the year in the hundreds and soared throughout 2017, peaking near $20,000 by the end of that year. This growth marked an approximate 2,698% increase, underscoring the crypto’s capacity for dramatic price appreciation after elections.
Further, following the 2020 election, Bitcoin started at around $14,000 and reached about $69,000 by late 2021, representing a growth of 386.07%. This sequence of data points underlines the consistent pattern of post-election rallies.
Potential Short-Term Reactions
In anticipation of the upcoming election, analyst Miles Deutscher provided insights on potential short-term market reactions. He noted that the election outcome could significantly influence Bitcoin’s immediate price movements.
Specifically, a Trump victory might lead to a dramatic price surge, while a win by Harris could dampen immediate momentum. Deutscher also suggested that a Harris win might shift focus toward altcoins, driven by pre-election de-risking and subsequent FOMO-driven investments. Nonetheless, he asserted regardless of the winner, Bitcoin would attain $100,000 post-election.
Analysts speculated that a Trump administration might take a more lenient approach to crypto regulations, potentially benefiting sectors like decentralized finance (DeFi) and revenue-sharing projects.
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