Bitcoin Analysts Predict Pre-Election Surge, Warn of Possible Post-Election Sell-Off
The price of bitcoin may surge ahead of the US election on November 5, but analysts warn that a sell-off could occur in the days following the election results, regardless of the winner.
“Profit-taking could weigh on the bitcoin price in the days following the announcement of the results, but dip buyers should hold strong support below $60,000,” Tyr Capital chief investment officer Edouard Hindi said. He added that regardless of the election outcome, bitcoin is likely to regain momentum in the medium term and target new highs in 2024.
Bitget Research chief analyst Ryan Lee reiterated this outlook, emphasizing that bitcoin is primed for significant growth in the coming week as Americans prepare to head to the polls next Tuesday.
"Several factors support the potential rise of bitcoin, in particular the expected interest rate cut by the US Federal Reserve. The market generally expects a 25 basis point cut on November 7, which would bring rates down to the 4.5% to 4.75% range, reflecting the need for adjustments to stabilize economic growth," Lee said.
Lee emphasized that the two-day gap between the US election and the Fed's rate decision could significantly influence the price of bitcoin.
"The direction of this impact will depend on whether a pro-bitcoin candidate emerges victorious."
