Bitcoin is on the verge of a significant breakout, with the potential to reach its all-time high of $74,100 in the coming weeks, according to Bitget analyst Ryan Lee. This surge could happen between late October and November, driven by both economic factors and evolving political landscapes, particularly with the U.S. elections on the horizon. However, the path to this new record may not be without its challenges, as short-term pullbacks are expected.
Lee points to recent interest rate cuts from major financial institutions as a key driver of Bitcoinâs rally. The Federal Reserve's 50 basis point cut and the People's Bank of China's 35 basis point reduction have made risk assets like Bitcoin more attractive to investors. Lower interest rates typically lead to cheaper borrowing costs, encouraging investment in higher-risk assets such as cryptocurrencies.
However, investor sentiment is crucial, especially as the political landscape for 2024 unfolds. A pro-Bitcoin candidate, like Donald Trump, could boost market confidence, with traders holding their positions in anticipation of long-term gains. Trump has previously shown interest in making the U.S. a global hub for cryptocurrency. On the other hand, a victory for Kamala Harris might prompt traders to look overseas, fearing stricter crypto regulations at home.
Bitcoin's price is currently hovering around $64,120, marking a 2.9% increase since mid-September. As the political climate continues to evolve and central banks adjust their policies, traders are advised to position themselves early. The combination of favorable political sentiment and interest rate cuts could fuel Bitcoinâs next major rally, making now a critical time for investors to strategize.
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