Bitcoin Price Prediction: Could the 2024 Election Trigger a Bullish Rally?

Bitcoin Price Set for Massive Growth After U.S. Presidential Election?

Bitcoin price is poised to benefit from the upcoming U.S. presidential election, regardless of which candidate wins, according to CK Zheng, Chief Investment Officer at crypto hedge fund ZX Squared Capital. The Bitcoin halving event in April, combined with political uncertainties, may set the stage for a bullish fourth quarter in 2024.

Election Uncertainty and Debt Crisis Fuel Bitcoin’s Bullish Outlook

Historically, Bitcoin has shown strong price performance during the fourth quarter, particularly in years with halving events. CK Zheng told Cointelegraph that neither the Democratic nor Republican parties are adequately addressing the growing U.S. debt and deficit, which could have significant implications for Bitcoin.

“As both Republican and Democratic parties do not appropriately address the ever-increasing U.S. debts and deficits during this election, this will be very bullish for Bitcoin, especially post-election,” Zheng explained.

Bitcoin’s Historical Q4 Rally Linked to Halving and Elections

Data from CoinGlass reveals that Bitcoin has rallied more than 50% in six different fourth quarters since 2013. The last halving event in 2020, coinciding with the U.S. presidential election, saw Bitcoin surge 168% in Q4. Zheng expects a similar rally this year, with the potential for Bitcoin to reach a new all-time high either in the fourth quarter or soon after.

Bitcoin is currently trading at $64,400, a slight dip of 2% over the last 24 hours, but the long-term outlook remains positive.

Bitcoin’s Correlation With the NASDAQ: Impact of Interest Rate Cuts

The Federal Reserve’s aggressive monetary policies could also play a crucial role in Bitcoin’s price movements. According to Zheng, a potential 50 basis point interest rate cut could be bullish for Bitcoin, especially if the U.S. economy manages to avoid a significant downturn.

“If the Federal Reserve achieves a soft landing, Bitcoin’s price is likely to be highly correlated with the NASDAQ,” Zheng predicted. Leo Fan, founder of Cysic, also echoed these sentiments, adding that reintroduced liquidity may fuel stronger price movements in the months ahead.

Retail Interest and Media Frenzy: The Ripple Effect of Bitcoin’s Price Rally

However, the price rally itself might not be the most interesting aspect of Bitcoin’s performance, according to Samantha Yap, CEO of Web3 PR firm YAP.

“What matters is the surge in retail interest across the crypto industry that follows. Media attention often trails retail attention, creating a whole media frenzy. The hope for the crypto and Web3 space during these moments is that there are more usable and accessible applications ready for newcomers to adopt,” Yap explained.

This pattern suggests that rising Bitcoin prices not only capture the attention of institutional investors but also attract a wave of new retail participants, further fueling market growth.

Bitcoin as a Hedge Against Macroeconomic Instability

The evolving narrative of Bitcoin as “digital gold” continues to resonate with investors, particularly during periods of economic uncertainty. Bitcoin’s appeal as a hedge against macroeconomic instability is expected to attract more institutional capital, especially as traditional markets remain volatile.

As Leo Fan emphasized, “Bitcoin’s growing narrative as ‘digital gold’ and a hedge against macroeconomic instability is likely to attract more institutional capital, especially as traditional markets remain volatile.”

Bitcoin Poised for Growth in Post-Election Environment

With Bitcoin halving on the horizon and the U.S. presidential election approaching, the crypto asset seems well-positioned for growth. The combined effects of institutional investments, easing monetary policies, and Bitcoin’s growing reputation as a safe-haven asset suggest that the upcoming months could be pivotal for Bitcoin’s price trajectory.

Should Bitcoin follow a similar path as Nvidia’s explosive rally, its value could rise significantly, potentially reaching new highs. As the market continues to watch the political landscape and macroeconomic factors unfold, Bitcoin may well be on the verge of another historic rally.

FAQ: How Will the U.S. Presidential Election Affect Bitcoin’s Price?