- Bitcoin’s price may see significant volatility after the 2024 US presidential election, with potential gains or corrections based on the outcome.
- A victory by Donald Trump, who is considered a more pro-crypto candidate, could pave the way for Bitcoin’s next rally, although a Kamala Harris win may also lead to a rally.
- The altcoin market, especially tokens outside the top 10, is expected to face more downside regardless of the election results.
The bitcoin price may see increased volatility following the 2024 US presidential election. Analysts are divided on whether this volatility will lead to gains or losses for bitcoin.
Current Bitcoin Price Action
As of 8:05 am UTC on election day, bitcoin (BTC) remains subdued under $69,000. The current low volatility in bitcoin’s price indicates cautious market sentiment ahead of the election results, according to analysts at Bitfinex.
Potential for Volatility After Election
An increase in volatility after the election could contribute to bitcoin’s price appreciation, Bitfinex analysts said. They noted that if expected volatility fails to materialize, it may indicate a more substantial issue and a much deeper correction for BTC.
A Trump Win Could Spur Bitcoin Rally
A potential Trump victory could pave the way for the next bitcoin rally, although analysts at Sygnum said this could still happen if Vice President Kamala Harris wins. They wrote that post-election, the market will likely continue upward irrespective of the outcome. However, a Trump win may make the rally more pronounced.
End of the “Trump Trade”
Some have called bitcoin’s October rally a “Trump pump” seemingly correlated with Trump’s rising election odds. However, Bitfinex analysts said the Trump trade likely only pertains to bitcoin pre-election speculation.
More Downside for Altcoins
Regardless of the election outcome, the altcoin market may face further declines relative to bitcoin, according to Bitfinex analysts. They said general disinterest among investors suggests upward momentum for altcoins is unlikely without a significant catalyst.
Conclusion
Analysts widely expect bitcoin volatility around the 2024 election. While some think a Trump victory could spur a bitcoin rally, others believe the “Trump trade” was only a pre-election phenomenon. The altcoin market may also face near-term headwinds. The election outcome could set the stage for bitcoin’s next major price move.
