As the U.S. presidential election approaches its conclusion, major cryptocurrency investors, or “whales,” are ramping up their Bitcoin accumulation. Projections suggesting a Donald Trump victory in the 2024 election have these investors shifting towards riskier assets. Recently, 1,806 BTC, approximately $132 million, was acquired across 11 newly created crypto wallets.
Large-Scale Bitcoin Withdrawals from Binance
These substantial Bitcoin acquisitions were executed on the renowned crypto exchange, Binance. On November 6, Lookonchain, a blockchain intelligence platform, reported that investors have been making significant Bitcoin withdrawals from Binance. This trend points to a growing preference for storing Bitcoin in cold wallets rather than leaving it on exchanges, indicating a cautious approach among investors. Notably, as of the November 5 election, reports from various sources highlighted Trump’s victories in key states like Pennsylvania, North Carolina, and Georgia. Following these developments, Bitcoin’s price surged past $75,000.
Analysts Predict a Bullish Cycle for Bitcoin
With the election outcome influencing market volatility, analysts anticipate that Bitcoin may be entering a new phase in its bullish cycle. Bitfinex analysts project that Bitcoin could reach $80,000 by the end of 2024, especially given recent options positions and positive sentiment among investors regarding year-end Bitcoin prices. The rising interest in December 27 options at an $80,000 price point further strengthens this bullish sentiment.
Current Market Outlook
With the election results pushing Bitcoin beyond the once-critical $70,000 resistance level, this point has now become a support, fueling investor confidence and underscoring the market’s upward potential. This optimism is mirrored in the Crypto Fear & Greed Index, which has remained above 70, signaling strong investor appetite and trust in the market. After dipping into “fear” territory on October 11, the index quickly transitioned to “greed” as decentralized betting platform Polymarket began forecasting Trump’s lead. By mid-October, Trump held a 10-point advantage, bolstering market optimism and risk tolerance among investors.
As The Bit Journal notes, Trump’s potential victory has heightened interest in risk assets, with expectations that a Republican-led administration would adopt a more favorable approach toward cryptocurrencies.
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