November 4 Crypto News – Crypto Analysts Forecast Major Price Movements Ahead of 2025 Bitcoin Predictions
November 4 Crypto News – Analysts at Bernstein predict that Bitcoin could reach a price target of $200,000 by the end of 2025, regardless of the outcome of the upcoming U.S. elections.
The Impact of U.S. Elections on Crypto
As the election date approaches, the political landscape is intensifying, particularly regarding cryptocurrency. Republican candidate Donald Trump is viewed as the more pro-crypto option compared to Kamala Harris, who may continue the Democratic party’s hawkish stance on cryptocurrencies. This perception comes despite a recent shift in tone from the Democrats in the past few months.
According to Bernstein analysts, the primary drivers behind Bitcoin’s price are the U.S. fiscal indiscipline, record debt levels, and ongoing monetary expansion. These factors are increasing the demand for hard assets like Bitcoin. Furthermore, the success of U.S. spot Bitcoin exchange-traded funds (ETFs) is expected to accelerate this trend, with analysts stating, “The Bitcoin genie is out of the bottle, and it is hard to reverse this course.”
Historical Context and Predictions
The analysts expect this “altcoin reckoning” to conclude by December 2024 or the second week of January 2025. They draw parallels to historical patterns observed during the 2019 bear market, where a similar market flush-out took place. Cowen believes this pattern suggests that further pain could precede recovery, leading to a robust comeback for altcoins.
Current Market Conditions
As of now, Bitcoin’s market dominance is at 60.5%, the highest level since March 2021, according to TradingView. This dominance raises concerns for altcoins, as significant price movements are unlikely until Bitcoin’s market share falls below 50%.
Bitcoin’s price recently dipped 7% from around $73,500 on October 29 to $68,596 currently. Bernstein analysts noted that profit-taking and a temporary decline in spot Bitcoin ETF flows largely caused the recent market correction. However, there remains optimism for a potential year-end rally, with expectations for Bitcoin to achieve new all-time highs.
Election Implications for Other Cryptocurrencies
Some analysts suggest that a Harris victory could benefit Ethereum, particularly given its underperformance in 2024. They argue that U.S. spot Ethereum ETFs could be the last approved under a stricter regulatory regime, potentially avoiding competition from emerging platforms like Solana.
However, Bernstein dismisses this as “zero-sum thinking,” asserting that a constructive Securities and Exchange Commission (SEC) could create opportunities for all cryptocurrencies beyond Bitcoin. They emphasize that bipartisan support for pro-crypto regulations is crucial.
Leave a comment