According to Cointelegraph, the price of Bitcoin is expected to benefit from the upcoming US presidential election, regardless of the outcome, according to CK Zheng, chief investment officer at ZX Squared Capital. Zheng highlighted that neither the Republican nor Democratic parties have adequately addressed the growing US debt and deficit, which could be beneficial for Bitcoin, especially after the election.
Historically, Bitcoin has seen significant gains in the fourth quarter, especially during years that have seen Bitcoin halving events. Data from CoinGlass shows that Bitcoin has risen by more than 50% six times since 2013 in the fourth quarter. The last halving event in 2020 saw Bitcoin rise 168% in the fourth quarter, coinciding with the US presidential election that year. Cheng expects Bitcoin to hit an all-time high in the fourth quarter or shortly thereafter.
Samantha Yap, CEO and founder of YAP, a PR firm at Web3, points out that the surge in retail interest across the crypto industry following Bitcoin rallies is often more significant than the price increases themselves. Media attention often follows retail interest, creating a media frenzy. Yap hopes that during these moments, more usable and accessible applications will be available for newcomers to adopt.
Cheng also noted that a 50 basis point rate cut by the Federal Reserve could be positive for bitcoin and other riskier assets if the U.S. economy achieves a soft landing. Central banks aim to prevent the economy from overheating and experiencing high inflation without causing a slowdown. If successful, Cheng expects bitcoin’s price to be closely correlated with the Nasdaq.
