Bitcoin Rally Expected to Accelerate in Q4 Despite US Election Outcome, Hedge Fund Suggests
Bitcoin's price is expected to benefit in the fourth quarter, despite the upcoming US presidential election, according to CK Zheng, chief investment officer of ZX Squared Capital.
He asserts that the ongoing issues surrounding national debt and deficits, which have been largely ignored by both major political parties, will positively impact Bitcoin’s price in the aftermath of the election.
Historically, Bitcoin has shown strong performance in the fourth quarter, with significant price increases noted during previous halving events. Since 2013, Bitcoin has rallied over 50% in the fourth quarter on six occasions.
During the 2020 halving, for instance, Bitcoin surged by 168% in the same time frame, coinciding with the last U.S. presidential election.
Zheng highlights that the Federal Reserve's recent decision to implement a 50 basis point interest rate cut could further bolster Bitcoin and other risk-on assets, contingent upon the U.S. economy achieving a “soft landing.”
This strategy aims to maintain economic stability while preventing overheating and inflation.
Additionally, market sentiment and retail interest are critical factors that follow Bitcoin price increases. Samantha Yap, CEO of Web3 PR firm YAP, emphasizes that the real significance lies in the heightened retail engagement that typically follows such rallies, often igniting media attention and promoting the adoption of accessible crypto applications.
CoinGlass data indicates that Bitcoin is currently trading at approximately $64,400, reflecting a 2% decline over the past 24 hours.
However, Leo Fan, a founder of zero-knowledge proof generation and verification layer 1 Cysic, predicts that Bitcoin may hit a new all-time high in the fourth quarter or shortly thereafter, as liquidity returns to the market, potentially attracting more institutional investment amid ongoing volatility in traditional markets.
