The price of Bitcoin could swing at least 10% depending on which United States presidential candidate clinches election victory on Nov. 5, according to a trader, as Bitcoin volatility recently jumped to its highest point in three months.
According to a seasoned trader, the price of Bitcoin could experience significant fluctuations of up to 10% based on the outcome of the United States presidential election on November 5th. This prediction comes as Bitcoin's volatility has reached its highest level in three months. Despite Bitcoin's weekly closing not appearing to be the most favorable, the trader believes that the election's impact will overshadow this factor. The trader speculates that depending on the winner of the election, Bitcoin could witness a substantial movement in either direction, potentially reaching a 10% swing. As of now, Bitcoin is valued at $68,682, experiencing a 0.5% decrease in the last 24 hours.
Additionally, data from crypto derivatives exchange Derebit reveals that Bitcoin's volatility index has reached a three-month high on November 3rd. Last week, Bitcoin came tantalizingly close to achieving a new all-time high, briefly surging to $74,649 on October 29th, before experiencing a sharp decline due to election uncertainty.
In an investment note shared with Cointelegraph on November 4th, analyst Tony Sycamore from IG Markets emphasized that for Bitcoin to confirm an upward trend, it needs to surpass the resistance level at $74,000 and maintain this breakthrough. Such a development could potentially lead to a significant rally towards $80,000. However, Sycamore cautioned traders to exercise caution as a sustained retreat below Bitcoin's support at $65,000 would indicate the failure of last week's rally and likely result in the asset returning to its downward trend channel observed over the past seven months.
Regardless of the election's outcome, market sentiment surrounding Bitcoin remains optimistic. Analysts note a bullish trend for risk assets and various positive factors that can influence Bitcoin's performance. It is widely believed that a crypto-friendly Trump administration would provide short-term bullishness for crypto assets, as Trump has recently made numerous promises to support and foster innovation within the US crypto industry. On the other hand, Harris, the opposing candidate, did not mention cryptocurrencies until September 22nd when she briefly acknowledged her administration's intention to encourage investment in artificial intelligence and digital assets. Beyond the election, market participants anticipate that the US Federal Reserve will continue its campaign of interest rate cuts following a previous 50-basis-point reduction on September 18th. These rate cuts are generally seen as favorable for crypto assets, as traditional safe investments like term deposits become less appealing to investors.