Bitcoin could see a major price rally in the months following the U.S. presidential election, according to CK Zheng, Chief Investment Officer at ZX Squared Capital.
Per a report by Brayden Lindera for Cointelegraph, Zheng believes — regardless of which party wins– that neither candidate has sufficiently addressed the growing U.S. debt and deficit, which could play in favor of Bitcoin’s price action moving forward. Zheng points out that Bitcoin has consistently benefited from previous elections, and this year appears to be no different. Zheng expects similar patterns this year, potentially driving Bitcoin to new all-time highs before 2025. Furthermore, Zheng thinks the Federal Reserve’s recent interest rate cut could further support Bitcoin. He says if the U.S. economy can achieve a soft landing, Bitcoin may continue to rise as more liquidity flows into the market.
The Cointelegraph report also mentions that CoinGlass data shows that Bitcoin has surged more than 50% six times during the fourth quarter in past years, and the cryptocurrency saw a significant jump following the 2024 halving event in April. In fact, the halving typically sets the stage for a strong fourth quarter, as seen in 2020, when Bitcoin soared by 168% in the months after the event.
The report also said that Samantha Yap, CEO of YAP, had noted that the excitement around Bitcoin isn’t just about price increases. She emphasized that when Bitcoin rallies, there’s often a surge in retail interest, which triggers widespread media attention. This dynamic presents an opportunity for the broader crypto industry to offer more accessible products for newcomers entering the market.
Currently, Bitcoin is trading at $63,724, down 2.9% in the last 24 hours.
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