What to expect in the cryptocurrency markets during the election
A leading crypto trader Emperor recently revealed what he thinks could happen in the #cryptocurrency markets during the election. He predicted that Trump's victory could initially spur markets due to his pro-cryptocurrency stance and his promise to clarify the rules governing #digital assets.
/bitcoin, in particular, tends to react strongly to changes in U. S. politics. Below are the predictions for #cryptocurrencies after the election.
1. instant market rally due to Trump's victory.
2. short-term holders and retailers profit while the market falls.
3. selling on the news. Falling, accumulating. Market gets boring, retailers leave.
The latest data shows that the probability of Trump's victory has fallen to 57.1% in Polymarket's forecast market, down from a high probability of 60%.
However, Imperial also expects short-term holders to start immediately locking in profits if Trump wins. Many individual traders may resell the stock immediately after the initial rally, leading to a "news" drop.
This reaction could mean a temporary price drop as event-driven traders exit the market. According to Imperial, this phase could subside when retailers lose interest and the market stabilizes.
According to Imperial, after an initial downturn or lull, the cryptocurrency market could shift to accumulation as long-term investors start buying up assets at lower prices. If President Trump implements cryptocurrency-friendly policies, this could lead to sustained market growth as the regulatory outlook becomes increasingly clear.
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