Bitcoin Magazine: How Bitcoin Will React After the U.S. Election
Cryptocurrency bitcoin has had a strong year, up about 49%. That’s better than the stock market, or even gold. But the crypto is well off its highs from earlier in the year. Even with new demand from bitcoin ETFs, and the recent halving.
This year, bitcoin made a new all-time high before its halving event. That could be a case of investors and traders getting in ahead of the news. However, signs point to further upside in the future.
That future could be shaped by the outcome of November’s election. Bitcoin correlates strongly to trends in the S&P 500. That trend will likely increase as bitcoin investments become more institutionalized.
Typically, the S&P 500 rallies higher following an election, and into the first year of any presidency.
That bodes well for bitcoin prices. That would also be on par with the bitcoin rallies in 2017 and 2021.
If bitcoin follows a similar move to its returns following the 2016 election into 2017, bitcoin could peak out at nearly $500,000. If the trend is closer to that of the 2020/2021 period, bitcoin could see a price of $250,000 in the next year.
And bitcoin’s overall peak likely won’t happen until 2026, before the next winter cycle sets in. So investors with the patience to sit through pre-election market volatility in bitcoin could be heavily rewarded. It just takes a timeframe of the next 12-18 months.