Analyst Predicts Bitcoin Rally Before US Elections, But Issues Warning about Post-Election Sell-Off
As the US elections approach, experts are anticipating a potential surge in the price of Bitcoin. However, they are also cautioning investors about a potential sell-off in the days following the announcement of the election results on November 5.
Edouard Hindi, Chief Investment Officer of Tyr Capital, has highlighted the possibility of profit-taking that could impact Bitcoin prices after the election. He stated, “Bitcoin prices could be affected by profit-taking in the days following the results, but buyers at the bottom could provide strong support below $60,000.” Despite the short-term volatility, Hindi remains optimistic about Bitcoin’s long-term prospects and suggests that BTC could regain momentum and reach new highs in 2024.
Ryan Lee, Chief Analyst at Bitget Research, echoed Hindi’s sentiments and emphasized the growth opportunity for BTC as Americans prepare to vote next Tuesday. Lee pointed out several factors that support Bitcoin’s potential rally, including 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 bring interest rates down to a range of 4.5% to 4.75%, reflecting the Fed’s efforts to stabilize economic growth.
Lee emphasized that the timing of these two events could be crucial for Bitcoin. He stated, “The impact of these events will depend on whether a pro-Bitcoin candidate prevails.” The outcome of the election, combined with the Fed’s interest rate decision, is likely to set the tone for BTC’s near-term trajectory.
In addition to providing an outlook for post-election events, Lee also mentioned another important upcoming event: Microsoft’s board of directors will vote on a proposal to invest in Bitcoin at its annual shareholder meeting in early December. The decision made by the tech giant could have a significant impact on market sentiment.
“If the board votes against investing in Bitcoin, it could dampen market enthusiasm and hinder Bitcoin’s growth,” warned Lee. However, he also stated that if Microsoft were to proceed with an investment, it could trigger a substantial rally in the market.
Lee offered a price forecast for the upcoming week, predicting that Bitcoin will trade between $66,000 and $75,000 with a 70% confidence interval. He also projected that Ethereum could range between $2,350 and $3,200. Lee added that improved liquidity could lead to increased activity in altcoins.
*This article does not provide investment advice.
