Today, Bitcoin (BTC) briefly traded above $69,000, coming near its all-time high (ATH) value of $73,737 recorded earlier this 12 months in March.
Bitcoin ‘Bullish Setup’ Reminiscent Of 2020 Rally
After months of sideways price movement since March, BTC is constantly attempting to succeed in a latest ATH because the US presidential election draws near. The digital asset briefly touched $69,000 before slipping to $68,674 on the time of writing.
During an interview with CNBC, Matthew Sigel, Head of Digital Assets Research at VanEck, said:
Our bet is that this can be a very bullish setup for Bitcoin into the election. We saw the very same pattern in 2020 where Bitcoin lagged with low volatility after which once the winner was announced, we had a high volume rally as latest buyers come into this market.
Sigel added that after the election results are confirmed, Moody’s is predicted to downgrade US sovereign debt, which could catalyze a BTC rally within the fourth quarter of 2024.
Crypto analyst Michael van de Poppe also noted that despite Bitcoin’s relatively subdued performance in October – a month traditionally strong for the asset – BTC is well-positioned to succeed in a latest ATH soon.
He pointed out that, despite recent Federal Reserve rate of interest cuts, rates remain high enough to favor risk-off assets like US Treasury bills (T-bills), drawing liquidity away from riskier assets.
The Dutch crypto analyst brought attention to the rising M2 money supply, saying that the metric’s strong positive correlation with BTC could suggest that the digital asset could be on the cusp of a giant rally. He said:
So long as the M2 supply increases, bitcoin’s price goes to follow… so it’s only a matter of time until bitcoin price goes to select up momentum.
Notably, van de Poppe also mentioned that a possible Donald Trump presidency could spark optimism within the crypto sector, possibly igniting a bull run for digital assets within the months ahead.
Trump Continues To Lead In Prediction Markets
Data from Polymarket – a decentralized prediction market platform – indicates that Trump is favored to win against the Democratic candidate Kamala Harris.
At press time, Trump’s probability of winning the election has surpassed 66%. Compared, Harris’ odds stand at about 34%.
A recent survey found that the influence of the crypto voting bloc on election results is probably going understated. The survey found that near 16% of voters imagine the candidate’s stance on cryptocurrencies will influence their voting selection.
While most within the crypto industry lean toward Trump attributable to his pro-crypto stance, Harris has been actively courting a few of his crypto-supporting base.
An analyst recently opined that a Harris-led administration might arguably be higher than Joe Biden’s for the digital asset industry. BTC trades at $68,674 at press time, up 1.2% previously 24 hours.
Featured Image from Unsplash.com, Chart from TradingView.com