While Bitcoin is on the rise due to the influence of the FED, analysts are also waiting for the rally in October and beyond, known as the bullish months, and the US presidential elections.
Analysts say the election result could support the rise in BTC, predicting that if Donald Trump wins, the Bitcoin price will continue to rise, while if Kamala Harris wins, the price will fall.
Five Main Reasons for the Rise in Bitcoin!
As BTC maintains its position above $60,000, Bernstein analysts evaluated Harris' surprise statements and explained five key reasons for the rise and what to expect next.
According to The Block, Bernsterin analysts said one reason for Bitcoin’s rally is potential bipartisan crypto support, adding that “the rally was driven by Democratic candidate and current Vice President Kamala Harris’ promise to protect consumers while also encouraging crypto businesses at a Wall Street fundraiser over the weekend.”
Analysts Gautam Chhugani, Mahika Sapra and Sanskar Chindalia wrote in a note to clients:
“This statement marks the first time Harris has explicitly mentioned the word 'digital assets' in a statement.
This clearly contradicts Trump’s clear ‘America as crypto capital’ stance with specific policy promises. But nonetheless, the crypto community felt some relief as both candidates signaled support, and this was reflected in the bullish sentiment.”
Analysts said they continue to believe that cryptocurrency market sentiment will be stronger if Trump wins, and despite the positive statements, the crypto community is waiting for more clarity from Harris.
Analysts also added that their latest predictions that BTC would reach $90,000 if Trump wins and would drop to $30,000 if Harris wins are valid.
Analysts cited spot Bitcoin ETF inflows, the Fed's 50 basis point interest rate cut, the Bitcoin mining industry's post-halving recovery and the completion of large-scale Bitcoin sales as other reasons for the rise.
Bernstein added that signals of looser monetary policy and a potentially weaker US dollar are positive for Bitcoin.
*This is not investment advice.