Is Bitcoin Ready To Break Through $70,000? Analyzing The Next Steps For The Crypto Leader
October 28 2024 - 10:33PM
NEWSBTC
As the US presidential election draws near, Bitcoin has briefly
surged to the $70,000 mark for the first time in over five months.
This milestone coincides with former President Donald Trump leading
in polls against Vice President Kamala Harris, setting the stage
for potential shifts in the cryptocurrency landscape depending on
the election outcome. $70,000 As Key Level For Bitcoin To Surpass
March Record The recent uptick in Bitcoin’s price has been
bolstered by a rally in the stock market, with analysts noting that
investors are increasingly pricing in a potential Trump
victory. Tony Sycamore, a market analyst at IG Australia Pty,
indicated that Bitcoin needs to maintain a solid break past $70,000
to build confidence in surpassing its previous record of $73,798
set in March. Trump has positioned himself as a pro-crypto
candidate, pledging to make the US the cryptocurrency capital of
the world. In contrast, Harris has taken a more cautious stance,
advocating for a regulatory framework for the industry.
Amidst the political backdrop, options traders have ramped up their
bets, with many speculating that Bitcoin could reach $80,000 by the
end of November, irrespective of who wins the election.
Related Reading: Are ‘ETF Paper Bitcoins’ Suppressing BTC Prices?
Analyst Provides Answers Implied volatility around Election Day on
November 5 has also risen, reflecting the uncertainty in the
market. Notably, spot Bitcoin ETFs in the US have seen
approximately $3.1 billion in net inflows this month, further
contributing to the positive sentiment surrounding
cryptocurrencies. Regulatory Concerns Surround Harris’s Stance On
Crypto Crypto analyst VirtualBacon recently highlighted the
significance of the upcoming election for the cryptocurrency
market, dubbing it the “Crypto Election.” Prediction markets
currently favor Trump at 60%, although these figures may be skewed
due to the crypto community’s historical support for him. National
polls indicate a tighter race, with Harris holding a slight lead of
just over 1%. The crypto industry has contributed
approximately $119 million to campaigns this election year,
representing nearly half of all corporate donations. However,
major players like Coinbase and Ripple are strategically donating
across party lines to promote supportive legislation rather than
backing a single candidate. While both Trump and Harris have
publicly expressed favorable views on cryptocurrency, their
commitments to concrete legislative action remain uncertain.
Harris’s regulatory approach raises concerns, as her campaign has
emphasized protecting minority investors in digital assets without
providing specifics. Moreover, her tenure as Vice President
coincided with the appointments of prominent crypto critics such as
the US Securities and Exchange Commission (SEC) chair Gary Gensler,
and US Treasury Secretary Janet Yellen. On the other hand, Trump’s
evolving views towards cryptocurrency, including the launch of a
successful NFT project and a DeFi platform, suggest a warming to
the industry. As the election approaches, VirtualBacon
suggests that it’s crucial to consider that economic data released
post-election will significantly influence market sentiment.
The upcoming Federal Open Market Committee (FOMC) meeting in
November could provide critical insights into inflation and
liquidity, impacting both the broader market and the trajectory of
cryptocurrencies. BTC’s Path To $100,000 Despite the speculation
surrounding the impact of the presidential election, which is just
7 days away, another analyst, Ali Martinez, noted that over the
past eleven years, seven of them have seen massive gains for the
market’s leading crypto. As can be seen in the chart provided by
Martinez, the average November gain for BTC is a massive 46%, which
if the market follows these late patterns, could see a November
price of just over $100,000 per coin. Related Reading: Cardano
Price Prediction: Analyst Says 80-90% Correction Is Over With 100%
Jump Imminent However, for BTC to confirm a breakout to retest its
all-time high, it will be key for it to consolidate above the
$70,000 mark in the coming days ahead of the election, positioning
it well for a dramatic breakout to even higher prices.
Featured image from DALL-E, chart from TradingView.com
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