Bitcoin (BTC) is making a strong comeback, briefly touching $69,000, just shy of its all-time high of $73,737 reached earlier this year. Experts are predicting a bullish setup for Bitcoin, especially as the US presidential election approaches.
Election Hype and Bitcoin’s Potential
After months of sideways movement, Bitcoin is showing signs of life, with many analysts seeing parallels to the 2020 rally. Matthew Sigel, Head of Digital Assets Research at VanEck, believes that Bitcoin’s performance could mirror the 2020 rally, where it lagged with low volatility before surging after the election winner was announced. Sigel also points to a potential downgrade of US sovereign debt by Moody’s, which could further fuel a Bitcoin rally in the fourth quarter of 2024.
M2 Money Supply and Bitcoin’s Future
Crypto analyst Michael van de Poppe highlights the rising M2 money supply as a key factor in Bitcoin’s potential for growth. He argues that the strong correlation between the M2 supply and Bitcoin’s price suggests a significant rally could be on the horizon. Van de Poppe also notes that despite recent interest rate cuts, rates remain high enough to favor risk-off assets like US Treasury bills, which could draw liquidity away from riskier assets like Bitcoin.
Trump’s Influence on Crypto
The upcoming election is generating buzz in the crypto community, with a potential Donald Trump presidency being seen as a positive sign for the sector. Data from Polymarket, a decentralized prediction market platform, shows Trump as the favorite to win the election, with a probability of winning exceeding 66%. While many in the crypto industry lean towards Trump due to his pro-crypto stance, Kamala Harris has also been actively courting crypto supporters. Some analysts believe a Harris administration could be beneficial for the digital asset industry.
Crypto’s Voting Power
Recent surveys suggest that the influence of the crypto voting bloc on election results is underestimated. Close to 16% of voters believe the candidate’s stance on cryptocurrencies will influence their voting choice. This indicates that the crypto community is becoming increasingly politically active and could play a significant role in shaping the future of the industry.
With Bitcoin currently trading at $68,674, up 1.2% in the past 24 hours, the stage is set for an exciting period in the crypto market. The upcoming election and the potential for a new all-time high are keeping investors on the edge of their seats.
