The chief investment officer of ZX Squared Capital asserts that the U.S. presidential election will not impede a Bitcoin rally in Q4, supported by historical price trends and economic conditions. Both political parties’ inattention to rising debts could bolster Bitcoin’s appeal, which may attract renewed investment interest alongside potential Federal Reserve interest rate changes. Bitcoin is currently trading at $64,400, down 2% from the previous day.

According to CK Zheng, chief investment officer at ZX Squared Capital, the outcome of the upcoming United States presidential election will not hinder a likely rally in Bitcoin prices during the fourth quarter. Analyzing past trends, Zheng noted the historical impact of Bitcoin halving events, which typically yield substantial price gains in Q4, suggesting that this year will follow suit irrespective of which candidate claims victory. Zheng emphasizes that both major political parties have neglected to adequately address escalating U.S. debt levels during their campaigns, making Bitcoin a potentially attractive investment as these economic factors could bolster its appeal. He points to CoinGlass data indicating that Bitcoin has rallied by more than 50% in the fourth quarter six times since 2013, often benefiting from the effects of halving events. For instance, during the halving in 2020, Bitcoin surged 168% in the fourth quarter, coinciding with the previous presidential election. Zheng predicts that Bitcoin could reach a new all-time high either in Q4 or shortly thereafter. Samantha Yap, CEO of YAP, a Web3 public relations firm, underscored that while price increases in Bitcoin are noteworthy, they pale in significance compared to the subsequent surge in retail interest that cryptocurrency experiences alongside such rallies. This increase in public interest often leads to heightened media scrutiny, which can result in greater market participation from newcomers. Additionally, Zheng mentioned the potential bullish implications of an aggressive interest-rate cut by the Federal Reserve, suggesting that a successful navigation towards a soft economic landing could create a favorable environment for both Bitcoin and risk assets. If the economy stabilizes, he anticipates a correlation between Bitcoin’s price movements and the performance of the NASDAQ. Crypto entrepreneur Leo Fan commented on the reintroduction of liquidity into the market, positing that this trend could fortify price movements in the coming months. He remarked that Bitcoin’s perception as “digital gold” and a safeguard against economic instability is likely to attract more institutional investment, particularly amid fluctuations in traditional markets. Currently, Bitcoin’s price stands at $64,400, reflecting a 2% decrease over the past day.

The relationship between Bitcoin prices and significant economic events has long intrigued investors and analysts. Notably, Bitcoin has demonstrated a pattern of strong performance during the fourth quarter of the year, particularly following Bitcoin halving events which reduce the rate at which new coins are created. Given the economic context of the United States, notably high debt levels and recent Federal Reserve interest rate changes, there are increased expectations for Bitcoin to gain traction. This backdrop sets the stage for potential price rallies and heightened interest in the cryptocurrency market, particularly in light of the upcoming presidential election and related economic implications.

In conclusion, the upcoming United States presidential election is poised to influence Bitcoin’s price trajectory positively, as highlighted by investment experts. With historical data supporting significant fourth-quarter rallies following halving events and the continued concern over U.S. economic stability, Bitcoin may solidify its role as a hedge against macroeconomic risks. Consequently, market dynamics are aligning favorably for Bitcoin, suggesting the maturity of the cryptocurrency landscape as increasingly appealing to institutional and retail investors alike.

Original Source: cointelegraph.com

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