The price of the leading cryptocurrency may see a significant increase ahead of the US presidential elections. However, according to several experts, a correction is likely in the days following November 5, reports The Block.
“Profit-taking could put pressure on the price of bitcoin in the days following the announcement of the results. However, those in favor of buying the dip should provide strong support below the $60,000 level,” noted Tyr Capital’s Chief Investment Officer, Edouard Hindi.
He emphasized that regardless of the election outcome, the upward momentum is likely to resume; new highs could be reached before the end of 2024.
Bitget Research’s Chief Analyst, Ryan Lee, expressed a similar view. In his opinion, bitcoin is poised for significant growth in the coming week.
“Several factors support the potential rise of bitcoin, particularly the anticipated interest rate cut by the Fed. The broader market expects a 25 basis point reduction on November 7, which would lower the rate to a range of 4.5-4.75%,” said Lee.
He also highlighted the significance of the two-day interval between the US elections and the American regulator’s decision on the key rate.
“The direction of this impact will depend on whether a pro-bitcoin candidate wins,” added Lee.
The Microsoft Factor
Ryan Lee believes that the market dynamics could also be influenced by the Microsoft board of directors’ planned vote on bitcoin investments in early December.
“If the board votes against investing in bitcoin, it could dampen market participants’ enthusiasm and hinder the cryptocurrency’s growth,” explained the specialist.
On the other hand, a positive decision by Microsoft could trigger a strong upward price movement.
Lee suggested that as early as next week, bitcoin could reach a new high of $75,000, while Ethereum could hit $3,200.
At the time of writing, the leading cryptocurrency is trading around $71,180, with a 4.9% increase over the past 24 hours, according to CoinGecko.
Previously, Standard Chartered analyst Jeff Kendrick suggested that on November 5, bitcoin could surpass the $73,000 mark.