As the US elections draw near, analysts are predicting a potential surge in the price of Bitcoin, but are also warning investors about a possible sell-off in the days following the announcement of the election results on November 5.
Tyr Capital’s Chief Investment Officer Edouard Hindi has highlighted potential profit-taking that could affect Bitcoin prices after the election. “Bitcoin prices could be affected by profit-taking in the days following the results, but buyers on the bottom could hold strong support below $60,000,” Hindi said. Despite the short-term volatility, Hindi remains optimistic about Bitcoin’s long-term prospects, suggesting that BTC could regain momentum and target new highs in 2024.
Bitget Research Chief Analyst Ryan Lee echoed Hindi’s sentiments, noting the growth opportunity for BTC as Americans prepare to vote next Tuesday. According to Lee, there are a number of factors supporting Bitcoin’s potential rally, most notably the Fed’s expected rate cut on November 7, just two days after the election. The market is expecting a 25 basis point cut that would bring interest rates down to a range of 4.5% to 4.75%, reflecting the Fed’s efforts to stabilize economic growth.
Lee noted that the timing of these two events could be crucial for Bitcoin. “The direction of this impact will depend on whether a pro-Bitcoin candidate prevails,” he said. The outcome of the election, combined with the Fed’s interest rate decision, is likely to set the tone for BTC’s near-term trajectory.
In addition to his post-election outlook, Lee noted that there is another important event on the horizon: Microsoft’s board of directors will vote on a proposal to invest in Bitcoin at its annual shareholder meeting in early December. The tech giant’s decision could play a major role in shaping market sentiment.
“If the board votes against investing in Bitcoin, it could dampen market enthusiasm and hinder Bitcoin’s growth,” Lee warned. However, he said that if Microsoft were to move forward with an investment, it could trigger a significant rally in the market.
Lee offered a price forecast for the coming week, predicting that Bitcoin will trade between $66,000 and $75,000 with a 70% confidence interval, while Ethereum could range between $2,350 and $3,200. He added that improved liquidity could also spur increased activity in altcoins.
*This is not investment advice.
