Key Points
- Bitcoin’s price could see a major rally or a short-term reversal ahead of the 2024 US elections.
- Analysts predict a potential midterm selloff if Donald Trump wins the 2024 elections.
As the 2024 US elections draw nearer, the crypto market, led by Bitcoin (BTC), is slowly gaining bullish momentum. Bitcoin, the leading cryptocurrency, is currently at a crucial juncture, which could result in a significant bull rally in the short term or a temporary reversal below $60K before an expected rally towards a new all-time high.
After hitting a significant resistance level around $69K, the same peak level reached during the 2021 bull run, Bitcoin’s price has since dropped below $67K to trade at approximately $66,761 as of Wednesday, October 23, during the mid-London session.
Market Overview
This has resulted in the total crypto market capitalization slipping over 2 percent to hover around $2.4 trillion. The majority of the altcoins, led by Ethereum (ETH), have also been caught in a short-term bearish trend.
Analysts’ Predictions
According to economist Peter Schiff, a potential victory for Donald Trump in the 2024 US elections could trigger a midterm selloff. Schiff points out that the crypto community has been betting on a Trump win to strengthen the Web3 space in the world’s largest economy in the coming years. However, Schiff continues to advocate for Gold as a safe haven over Bitcoin.
Trader Peter Brandt has noted that Bitcoin’s price is currently hovering at the most anticipated and hoped-for bullish breakout in its history. Furthermore, a successful bullish breakout from the current levels could lead to a parabolic rally for Bitcoin in the following years. This would also lead the altcoin market to follow suit, and potentially result in the crypto space surpassing Gold’s market cap.
The fourth quarter of Bitcoin’s halving year is often seen as bullish for the entire crypto market. With the second half of October already showing bullish sentiment for the entire crypto market, the chances of Bitcoin’s price following Gold’s footsteps have significantly increased.
The high demand for Bitcoin from institutional investors has significantly improved the overall bullish sentiment. The US spot Bitcoin ETF, led by BlackRock’s IBIT, has seen noticeable growth in recent weeks. According to the latest market data, the US spot Bitcoin ETFs have bought over $2.5 billion worth of BTCs in the past three weeks, thus outweighing the miners’ daily supply and absorbing most of the selling pressures.
Earlier today, Metaplanet Inc announced the completion of a planned stock sale and raised over ¥10 billion, equivalent to more than $67 million, to strengthen its Bitcoin strategy. Metaplanet currently holds over 861 Bitcoins, and is quickly following the US-based MicroStrategy Inc (NASDAQ: MSTR).
