Key Points
- Bitcoin’s recent rally has been linked to the upcoming U.S. elections, with a potential surge to $70K predicted.
- Crypto market volatility is likely to increase ahead of key events like the U.S. elections and the November Fed meeting.
Bitcoin, also known as BTC, experienced a 5% rally on October 14th, revisiting the $66K mark. This uptick has been associated with the impending U.S. elections.
Trump Bump and Election Trends
Quinn Thompson, the founder of Lekker Capital, a crypto hedge fund, has referred to the recent rally as a “Trump bump”. He attributes this to the rising chances of Trump winning the U.S. elections.
Furthermore, Kamala Harris’s recent promise to back a crypto regulatory framework has led some experts to suggest that the 2024 elections could benefit the crypto industry, regardless of the outcome.
Historical Patterns and Predictions
Crypto trading firm QCP Capital suggests that the rally is part of historical trends that occur prior to U.S. elections. In 2016 and 2020, Bitcoin experienced significant surges just three weeks before Election Day.
Ryan Lee, the chief analyst at Bitget Research, believes that Bitcoin has demonstrated resilience in the face of a strengthening U.S. dollar. This could indicate a bullish phase for the asset in the medium term. He predicts that Bitcoin could either remain range-bound or explode above $70K by the end of October.
The demand for Bitcoin has risen in the past 30 days, reaching levels last seen in April. This is a significant change from the low demand experienced in the second and third quarters of 2024.
Peter Brandt, a well-known analyst, suggests that a market structure shift could only occur if Bitcoin surged above $68.2K. At the time of writing, Bitcoin was valued at $65.6K, which is about 12% below its all-time high of $73.7K.