Bitcoin has been on a rollercoaster ride in terms of price ever since Vice President Kamala Harris announced her candidacy for the U.S. Presidential election in July 2024. Traders and investors are closely watching the cryptocurrency as it attempts to test its previous all-time high of $73,738 on Oct. 29, 2024. With the U.S. elections looming, many are speculating on how the outcome could impact Bitcoin’s price.
Derivatives data is pointing towards a potential rally for Bitcoin, with the range set between $60,000 to $80,000. Technical analysis also suggests that Bitcoin is eyeing a rally to a new all-time high. Despite the recent price fluctuations, experts believe that Bitcoin is still undervalued at the moment.
Crypto prediction markets like Polymarket and Kalshi are providing insights into how traders are viewing the upcoming elections. Interestingly, former U.S. President Donald Trump is currently the favorite on these platforms, with a higher percentage of bets in his favor compared to Harris.
Trump’s pro-crypto stance and his plans for a national Bitcoin reserve have rallied support among crypto traders. On the other hand, Harris’ stance on crypto, as outlined in her “Opportunity Agenda for Black Men,” suggests a more measured approach to the asset class.
Institutional investors are closely monitoring the situation, with data showing that they have increased their capital flow into Bitcoin when the odds of a Trump win were higher. This indicates a level of confidence in Bitcoin’s potential price movement post-election.
While some observers believe that the election outcome could directly impact Bitcoin’s price, others argue that historical data shows that other factors, such as institutional adoption and market catalysts, play a more significant role in driving bull markets. The primary driver of Bitcoin’s recent rally has been attributed to institutional adoption, with BlackRock’s application for a Spot BTC ETF earlier this year sparking renewed interest in the cryptocurrency.
As the U.S. elections draw closer, all eyes are on Bitcoin and how it will react to the outcome. While short-term price movements may be influenced by the election results, the long-term outlook for Bitcoin remains positive, driven by factors beyond political events. Investors and traders should closely monitor developments and be prepared to manage risks accordingly in the volatile crypto market.
