Bitcoin is facing one of the biggest tests in its history; What will the US presidential elections and the Fed interest rate decision lead to?
Bitcoin (BTC) had a volatile start to the US election week. Analysts are of the opinion that the election results could create big movements in the crypto market. In particular, speculation is increasing that Bitcoin could reach six-digit levels by the end of 2024.
BTC, which approached its all-time high last week, fell to 67 thousand dollars with the sales wave that continued throughout the weekend. The decline in BTC was attributed to Kamala Harris’s lead over Donald Trump in the polls.
On-chain analysis platform Spot On Chain stated that the pullback in BTC is a correction and the price will continue to rise in the near future.
If Bitcoin survives the week, it can close the year positively
The fact that the US presidential election and the Federal Open Market Committee (FOMC) meeting coincide in the same week may cause Bitcoin (BTC) to enter one of its most volatile periods ever.
According to Spot On Chain’s market analysis based on historical data, significant increases were generally seen following the US elections. This trend could push BTC higher regardless of who is elected president. The analysis emphasized that the $100,000 level is an achievable target for the BTC price.
Crypto analyst Ali Martinez pointed out that while BTC was traded below $12 in 2012, it rose by 10,640 percent after the elections. Martinez emphasized that a similar scenario also occurred after the 2016 elections and BTC increased by 2,698 percent during the said period.
In the last US presidential elections held in 2020, the price of BTC increased from 14 thousand dollars to 69 thousand dollars.
Analyst Miles Deutscher suggested that the elections could have a serious impact on the market in the short term. The analyst stated that if Trump is elected president, a violent crypto bull may occur, and if Harris wins, the rises will slow down. Still, the analyst believes the crypto bull will happen no matter who is elected president.
Deutscher stated that regardless of the election result, BTC could reach 100 thousand dollars by the end of the year. The analyst argued that caution should be exercised against volatile market conditions.
