Bitcoin’s volatility has surged in response to the US presidential elections, with historical patterns suggesting potential upward movement post-elections. A victory for Kamala Harris could result in an 8 to 13 percent correction for Bitcoin, while a Trump victory may propel prices beyond $80,000. Key support levels are crucial in determining Bitcoin’s short-term movement following the elections.

The volatility of Bitcoin has noticeably increased since October 10, closely tied to the impending US presidential elections slated for November 5. As historical trends indicate, financial markets typically experience a rally post-elections, suggesting a potential upward trajectory for Bitcoin. Presently, Bitcoin’s critical support level is positioned at $68,958; should this level be breached, a correction in the range of 8 to 13 percent may ensue, whereas a rebound could potentially propel the price beyond $80,000. In observing the current sentiment, online betting platforms indicate that former president Donald Trump holds a 63.1% probability of winning the presidency. This speculation has been reflected in the recent rally of Bitcoin toward its all-time high of $73,949. The inevitable question arises: How will Bitcoin’s valuation respond in the event of Kamala Harris’s election? The influence of US political events on Bitcoin’s valuation cannot be overstated. Bitcoin, along with the broader cryptocurrency market, predominantly operates in correlation with the US dollar, which is the prevailing world reserve currency. Consequently, any significant shifts in US economic policy or political stance invariably affect Bitcoin’s performance. Should Vice President Kamala Harris ascend to the presidency, it is anticipated that Bitcoin may experience a temporary retracement. Investors foresee a pullback of approximately 8 to 13 percent in such a scenario, as Harris and her party have historically exhibited reluctance towards endorsing cryptocurrencies, despite a few supportive remarks regarding digital assets. Conversely, should Donald Trump secure victory, the bullish momentum that has been instrumental in driving Bitcoin prices from lows around $50,000 is likely to persist, potentially surpassing the current all-time high and reaching new levels around $80,000. This optimistic outlook is bolstered by Trump’s vocal advocacy for cryptocurrencies, alongside initiatives such as the proposed Department of Government Efficiency, linked contextually to the cryptocurrency Dogecoin. Long-term projections for Bitcoin remain positive; however, immediate analyses suggest a bearish shift could occur if critical support levels are breached. The consolidation zone between $68,958 and $59,364 is crucial, with significant trading volume occurring within this range. Thus, if Kamala Harris wins, a failure to maintain the $68,958 support could trigger a significant correction, whereas a positive reaction coupled with a Trump win could elevate Bitcoin past $80,000, spurring further interest in the market.

The context surrounding Bitcoin’s price volatility is deeply intertwined with US political events, particularly elections, given that Bitcoin and other cryptocurrencies are significantly influenced by macroeconomic developments and policy shifts originating from the United States. The ongoing volatility observed in the market since early October hints at market sensitivity to anticipated outcomes from the upcoming presidential election, positioning Bitcoin’s performance as somewhat predictable yet heavily reliant on the election’s results. Historical data showcases a pattern where financial markets generally rally following US elections, influencing investor sentiment and trading behaviors in the crypto sphere.

In conclusion, the upcoming election poses significant implications for Bitcoin’s price trajectory. If Kamala Harris wins, a short-term correction of approximately 8 to 13 percent is forecasted due to her party’s tepid stance on cryptocurrencies. Conversely, should Donald Trump emerge victorious, the prevailing bullish sentiments that have recently driven Bitcoin’s value could continue, leading to potential record highs beyond $80,000. Thus, both immediate and long-term strategies for Bitcoin investors must consider these political outcomes.

Original Source: coingape.com

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