If you didn’t invest in the Bitcoin frenzy first time round (and who can blame you, it was kinda crazy) — you could be looking at a second chance.
The market is signaling loud and clear that whoever wins the US presidential election on Tuesday, they’re going to be more open to crypto than ever before. And the upshot is that Bitcoin is on track to break its record.
And then it’s expected to break this new record AGAIN – as falling US interest rates free up funds.
Up, up and away
The past few days alone have been epic: Bitcoin’s jumped from $66,624 a token on October 26 to as high as $73,594 on Wednesday morning, coming seductively close to its March 14 all-time high of $73,700.
That’s a massive boost from just $53,000 as recently as September. (Can you feel the FOMO? Ouch.)
Betters on Polymarket, the crypto-based prediction platform, are forecasting a 93% chance that the historic moment 🚀will happen before the close of this year. Just FIVE days ago they gave it a 64% chance!
Keep an eye on rates, too
If you want to get your slice of Bitcoin’s second coming, there’s a couple of factors you need to think about. One is unfolding now and the other will unfold over the next year.
Right now, it’s all about the election. Sentiment suggests Bitcoin will break through its all-time high after the election – but it will happen faster if Donald Trump wins and a bit later if Kamala Harris shines through.
That’s because Trump’s pre-election position on crypto has been more detailed, clear and favorable. Harris took till September to address crypto, and she was kind of mealy-mouthed, promising to “encourage innovative technologies like AI and digital assets” with the caveat that this would happen “while protecting consumers and investors.”
Data from DeFi derivatives platform Derive estimates price swings as high as 20% as the US election nears.
It’s not just regulation though. Interest rates matter, a lot, for risky assets like crypto too. That election peak, whenever it happens, will be surpassed in the next six to 12 months as the Fed’s next interest rate cuts feed through the financial system, says Vineet Budki, Cypher Capital’s managing partner and CEO.
“No matter who wins the election, people have to have money to buy crypto,” Budki told MONIIFY. “That will only happen once easing out occurs over a year gradually.”
Ready to explode?
But you know, it’s crypto, so analysis can only take you so far. Some traders are forecasting that Bitcoin is going to hit $80,000 regardless of literally everything.
Bitcoin’s “hashrate is at an all-time high”, which suggests the network is stronger than ever, Nikhil Mittal, a data analyst, said in a post on X.
“Historically, price tends to follow – are we about to see it explode?”
