Bitcoin Dips Below $68,000 as US Election Looms: Will Trump’s Victory Fuel a Rally?
As the United States prepares for the outcome of the highly anticipated presidential election between former President Donald Trump and Vice President Kamala Harris, Bitcoin (BTC) has encountered a slight dip, currently hovering around the $68,000 mark. This price action comes after Bitcoin’s valiant attempts to breach its all-time high of $73,700, a milestone achieved in March following the approval of exchange-traded funds (ETFs) that invest in the cryptocurrency.
Despite its recent efforts, Bitcoin has faced resistance, leading to a current price correction. If Bitcoin fails to maintain its position above $68,000, it may revisit the $66,600 support level, with a further decline potentially taking it down to $63,000—a crucial threshold in the near term.
Analysts Remain Optimistic Despite Price Challenges
Despite the current price headwinds, many analysts remain bullish about Bitcoin’s future prospects. Crypto analyst Ali Martinez observes that Bitcoin’s price has historically exhibited volatility in the days following past US presidential elections; however, the overall trend has remained upward. This historical pattern suggests that Bitcoin could potentially retest its previous highs, with the possibility of achieving a new record price beyond the milestone reached eight months ago.
Furthermore, Martinez highlights a recent buy signal from the TD Sequential indicator on the 12-hour chart, indicating a potential rebound. This rebound could empower Bitcoin to challenge the $73,000 resistance level once again.
Trump Victory Could Fuel Bitcoin’s Surge to $200,000
Analyst Miles Deutscher maintains a strong belief that Bitcoin is on a trajectory toward $100,000, regardless of the election’s outcome. However, he anticipates that a Trump victory could significantly enhance Bitcoin’s price ceiling, with speculative targets ranging from $200,000 to $300,000.
Deutscher emphasizes that this bullish sentiment extends to altcoins like Ethereum, which could also benefit from a Bitcoin rally in the latter part of the year. This optimistic outlook stems from Trump’s vocal support for the crypto industry, including his suggestion to potentially use Bitcoin as a strategic national reserve asset to address the nation’s substantial national debt, currently estimated at $35 trillion.
Trump’s Pro-Crypto Stance vs. Harris’ Unclear Position
Many believe that a Trump administration could foster favorable conditions for Bitcoin’s future growth, encouraging greater adoption and exposure from pension funds and institutions seeking to diversify their portfolios. This sentiment is reflected in the recent resurgence of Bitcoin ETFs.
In contrast, Kamala Harris’s stance on cryptocurrency has remained less clear. While she has not articulated a comprehensive plan for the digital asset sector, experts anticipate a shift from the current Biden administration’s regulatory scrutiny led by the US Securities and Exchange Commission (SEC).
The crypto betting site Polymarket currently gives Trump a nearly 60% chance of winning the election. While traditional polls show a closer race, they indicate that Trump could win all the swing states.
The coming hours will be crucial as we await the outcome of the US presidential election and its potential impact on Bitcoin’s trajectory. Stay tuned for updates as the situation unfolds.