According to Cointelegraph: As voting kicked off for the 2024 U.S. presidential election, Bitcoin experienced a sharp 3.7% price increase, hitting a high of $70,300 on Bitstamp. This sudden move was fueled by "sudden spot buying," as noted by popular trader Exitpump on X. Many analysts see this surge as part of a familiar trend, with comparisons to previous election cycles highlighting a potential pattern for Bitcoin’s performance during election seasons.
Echoes of Past Election Years in Bitcoin's Price Action
Trader Moustache highlighted similarities with prior election cycles, speculating that Bitcoin may have reached a local bottom just before election day. This behaviour aligns with previous election years, where Bitcoin saw significant post-election rallies. According to CryptoQuant's latest Weekly Report, Bitcoin's price surged by 37% after the 2016 election, 98% in 2020, and 22% in 2012, with 2024 following a similar trend.
Market Analysis Suggests Fair Valuation with Potential for Post-Election Rally
CryptoQuant’s report describes Bitcoin as “fairly valued,” implying that, should a positive catalyst arise post-election, BTC prices may continue to climb. This aligns with projections from QCP Capital, which noted the crypto market’s expectation of around a 3.5% BTC price move on election night itself. However, QCP Capital warns that traders might be underestimating potential risks post-election, as current market volatility premiums do not reflect the possibility of delays or contested results.
Bullish Sentiment Continues as Bitcoin ETFs Signal Market Confidence
Charles Edwards, founder of Capriole Investments, believes that regardless of election outcomes, Bitcoin is set to continue its bull run. He points to increased inflows into U.S. spot Bitcoin ETFs, indicating strong investor confidence. As Bitcoin hovers around $69,500, market sentiment remains optimistic, with expectations for further upside as the election unfolds.
This ongoing rally underscores Bitcoin's role as a volatile yet attractive asset in uncertain political climates, with historical patterns suggesting that Bitcoin may continue its upward trajectory following election-related events.
