Analyst Predicts Bitcoin Rally Before US Elections, Warns of Potential Sell-Off After Results
As the US elections approach, analysts anticipate a possible surge in the price of Bitcoin. However, they also caution investors about a potential sell-off following the announcement of the election results on November 5.
Edouard Hindi, Chief Investment Officer of Tyr Capital, highlights the possibility of profit-taking that could impact Bitcoin prices after the election. He suggests that while there may be short-term volatility, buyers at lower levels could provide strong support below $60,000. Despite this, Hindi remains optimistic about Bitcoin’s long-term prospects and believes that BTC could regain momentum and reach new highs in 2024.
Ryan Lee, Chief Analyst at Bitget Research, shares similar sentiments to Hindi. He notes the growth opportunity for Bitcoin as Americans prepare to vote, particularly due to the Federal Reserve’s expected rate cut on November 7, just two days after the election. The market is anticipating a 25 basis point cut, which would lower interest rates to a range of 4.5% to 4.75%, aimed at stabilizing economic growth.
Lee emphasizes the importance of the timing of these events for Bitcoin. He suggests that the impact will depend on whether a pro-Bitcoin candidate wins the election. The outcome of the election, combined with the Fed’s interest rate decision, is likely to determine BTC’s near-term trajectory.
Lee also highlights another significant event on the horizon: Microsoft’s board of directors will vote on a proposal to invest in Bitcoin during its annual shareholder meeting in early December. This decision could greatly influence market sentiment.
If Microsoft decides against investing in Bitcoin, it could dampen market enthusiasm and hinder Bitcoin’s growth, warns Lee. However, if the tech giant moves forward with an investment, it could trigger a significant rally in the market.
Looking ahead, Lee provides a price forecast for the coming week. He predicts that Bitcoin will trade between $66,000 and $75,000 with a 70% confidence interval, while Ethereum could range between $2,350 and $3,200. Lee also suggests that improved liquidity could lead to increased activity in altcoins.
Disclaimer: This article does not offer investment advice.
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