Bitcoin Taps $69,000 With ‘Bullish Setup’ As US Elections Near: New ATH Soon?

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market cycles and trends. The current setup for Bitcoin reminds me strikingly of the 2020 rally, where we saw a similar ‘bullish setup’ leading up to the US Presidential election.

Currently, the price of Bitcoin (BTC) momentarily surpassed $69,000, nearly matching its previous peak ($73,737) set in March of this year, which was its all-time record.

Bitcoin ‘Bullish Setup’ Reminiscent Of 2020 Rally

As an analyst, I’ve noticed that after a prolonged period of sideways price action since March, Bitcoin has been persistently striving to hit a new All-Time High (ATH) as the US presidential election approaches. Moments ago, it momentarily touched $69,000, only to dip slightly to $68,674 at this writing.

During an interview with CNBC, Matthew Sigel, Head of Digital Assets Research at VanEck, said:

It seems likely that the current situation could lead to a significant increase in Bitcoin’s value before the election, much like what happened in 2020. Back then, Bitcoin showed low volatility and then experienced a surge in volume after the winner was declared, attracting new investors.

Sigel mentioned that if the election outcomes are verified, there’s anticipation for Moody’s to lower U.S. government bonds. This potential action might spark a surge in Bitcoin prices during the last three months of 2024.

According to crypto expert Michael van de Poppe, even though Bitcoin had a relatively quiet month in terms of growth in October – a period typically favorable for the digital currency – it seems poised to set a fresh all-time high (ATH) shortly.

He pointed out that, despite recent Federal Reserve interest rate cuts, rates remain high enough to favor risk-off assets like US Treasury bills (T-bills), drawing liquidity away from riskier assets.

A Dutch cryptocurrency expert highlighted the increasing M2 money supply, implying that its significant association with Bitcoin could mean we’re about to witness a major surge in the digital currency. In simpler terms, he was pointing out that as the M2 money supply rises, it might lead to an impressive Bitcoin rally.

So long as the M2 supply continues to grow, you can expect the price of Bitcoin to move in tandem. Essentially, this means that an increase in M2 could lead to an upward trend in Bitcoin’s price over time.

Significantly, van de Poppe pointed out that a possible Donald Trump presidency might stimulate enthusiasm within the cryptocurrency industry, potentially leading to an upward trend or ‘bull market’ for digital currencies in the near future.

Trump Continues To Lead In Prediction Markets

According to data from Polymarket, a prediction market platform operating on a decentralized system, it appears that Donald Trump has a higher likelihood of defeating Kamala Harris in the upcoming election.

Currently, the chances of Donald Trump winning the election are over 66%, whereas Joe Biden’s (or Harris’s, depending on the running mate) likelihood is approximately 34%.

A recent study suggests that the impact of the crypto-voting group on election outcomes might be more significant than initially thought. The research indicates that nearly one out of six voters consider a candidate’s viewpoint on cryptocurrencies as crucial in determining their vote.

In the world of cryptocurrencies, many are drawn to Trump because of his supportive views. However, Harris is making an effort to win over a portion of this pro-crypto group by actively engaging with them.

A recent analysis suggests that an administration led by Harris could potentially offer advantages over a Biden-led administration for the digital assets sector. At the moment of writing, Bitcoin is trading at approximately $68,674, representing a 1.2% increase over the last day.

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2024-10-29 15:12