Next, the market's focus will shift to the results of the U.S. election. The U.S. stock market has also slightly pulled back before the election results come out. In fact, the failure to break through the new high of Bitcoin coincides with the trends in the U.S. stock market. After Wall Street capital comes in, Bitcoin's trajectory resembles that of an emerging tech stock. In fact, from both an investment perspective and Bitcoin's vision, we do not want this situation to occur, and we certainly do not want Bitcoin's price to be tied to the government, as none of these people have good intentions, and the original intention was to oppose these things.
Therefore, although we say that if Trump is elected, it is beneficial for Bitcoin's short-term price, it does not mean that Bitcoin's development must be tied to policies; it is merely stating an objective fact. In reality, the various 'interactions' with the highest authority and the most developed investment market do not mean we are yielding; on the contrary, it is because of mutual compromise after becoming strong in ourselves. After all, being able to sit at the same negotiation table with the strong must be based on strength. Moreover, this time Trump has made multiple crypto-friendly statements, which are also aimed at gaining votes, but will the actual effect really bring more support? In my view, it may not necessarily be the case.
Therefore, returning to the market situation, we must understand that the four-year cycle is an inherent law of Bitcoin. Next year, with the added benefit of interest rate cuts, abundant liquidity will make Bitcoin's price even crazier. The core issue is that the supply and demand of Bitcoin have undergone a qualitative change, leading to price increases. Abundant liquidity merely accelerates the upward trend. Once we understand this, I believe everyone will have more confidence in holding long-term, including Ethereum, as the expansion of the network and developments like DeFi will increase the demand for ETH, which is the guarantee for future price increases.
In the short term, the impact of the election results on the market can be qualitatively defined as news-related, which can influence Bitcoin's short-term price trends. If Trump is elected, the price will rise; conversely, it will fall. However, we must understand that whether we expect a black swan event or a drop due to this election, it is a good opportunity to buy the dip, as the market has entered the stage just before brightness arrives. This time the support is between 67,000 and 68,000; if it breaks below, we may see a better price appear, otherwise it will directly reach a new high.
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