CryptoQuant analysts stated that if history repeats itself, whether Trump or Harris wins the U.S. presidential election, Bitcoin will rebound before the end of the year.
CryptoQuant analysts wrote in a report on Tuesday that in the past three election years, the world's largest cryptocurrency by market capitalization has risen before the end of the year.
Bitcoin surged over $5,000 on Wednesday, reaching an all-time high of $74,998 per coin.
Analysts pointed out that in 2012 and 2016, Bitcoin increased by 22% and 37% respectively from election day to the end of the year. More importantly, it grew by 98% during the period from election day in 2020 to the end of the year.
It is certain that these three years coincide with Bitcoin halving, and the rewards for Bitcoin mining have been cut in half, meaning miners receive 50% less Bitcoin for validating transactions.
As a mechanism written into the Bitcoin blockchain algorithm, Bitcoin's supply cap is 21 million. For every 210,000 blocks mined (or approximately every four years), Bitcoin's maximum supply is halved until the maximum supply is fully released.
The most recent Bitcoin halving occurred on November 28, 2012, July 9, 2016, May 11, 2020, and April 19 of this year.
Nevertheless, most analysts expect that if Trump wins the election, Bitcoin's price will instinctively rise, while if Harris is elected, Bitcoin's price will fall.
However, according to Bohan Jiang, head of over-the-counter options trading at Abra, the worst-case scenario for Bitcoin would be delayed or disputed election results. If the final outcome is unknown for weeks, the market often reacts negatively to uncertainty.
This situation could lead to risk assets being continuously sold off and increased volatility in the days leading up to the announcement of election results, Jiang wrote in an email comment.
Article reposted from: Jinshi Data
