Today, Bitcoin (BTC) briefly traded above $69,000, approaching its all-time high (ATH) value of $73,737 set earlier this year in March.
Bitcoin’s “bullish setup” is reminiscent of the 2020 rally
After months of sideways price movement since March, BTC is constantly trying to reach a new ATH as the US presidential election approaches. The digital asset briefly reached $69,000 before falling to $68,674 at the time of writing.
During an interview with CNBC, Matthew Siegel, head of digital asset research at VanEck, said: He said:
Our bet is that this is a very bullish setup for Bitcoin in the election. We saw exactly the same pattern in 2020 where Bitcoin lagged with low volatility, and after the winner was announced, we saw a huge spike in volume as new buyers entered this market.
Siegel added that once the election results are confirmed, Moody’s is expected to downgrade the US sovereign debt rating, which could spur a Bitcoin rally in the fourth quarter of 2024.
Cryptocurrency analyst Michael van de Poppe also noted that despite Bitcoin’s relatively weak performance in October – a traditionally strong month for the asset – BTC is well positioned to reach a new ATH soon.
he He pointed out It is clear that despite recent interest rate cuts by the Fed, interest rates remain high enough to favor risk-off assets such as US Treasuries, pulling liquidity away from riskier assets.
A Dutch cryptocurrency analyst drew attention to the rising M2 money supply, saying that the metric’s strong positive correlation with BTC could indicate that the digital asset could be on the cusp of a major rally. He said:
As long as the supply of M2 increases, the price of Bitcoin will follow… so it is only a matter of time until the price of Bitcoin gains momentum.
It is worth noting that Van de Poppe also mentioned that a potential Donald Trump presidency could spark optimism in the cryptocurrency sector, possibly sparking a bull run for digital assets in the coming months.
Trump continues to lead in prediction markets
Data From Polymarket – a decentralized prediction market platform – indicates that Trump is the favorite to beat Democratic candidate Kamala Harris.
As of press time, Trump’s probability of winning the election exceeds 66%. By comparison, Harris’ odds are about 34%.
Recent poll Found The impact of the encrypted voting bloc on election results is likely underestimated. The poll found that nearly 16% of voters believe a candidate’s position on cryptocurrencies will influence their voting choice.
While most of them are in the crypto industry slim Harris has been active towards Trump for his pro-crypto stance courting Some of his cryptocurrency support base.
Recently analyst opinion The Harris-led administration may be better than the Joe Biden administration in the field of the digital assets industry. Bitcoin is trading at $68,674 at press time, up 1.2% in the past 24 hours.
Featured image from Unsplash.com, chart from TradingView.com