Hedge Fund Boss Predicts Q4 BTC Rally, Regardless of US Election

Key Takeaways:

• Bitcoin's price is expected to rise after the US presidential election, regardless of the outcome.
• Previous US elections have caused uncertainty, benefiting Bitcoin, and critical issues remain unaddressed by candidates.
• However, historical trends show Bitcoin surges after halving events, and this time may be similar.

ZX Squared Capital’s investment chief, CK Zheng, has predicted Bitcoin's direction post-November. He expects the bulls to return following the upcoming US presidential election, regardless of the winner.

A Perfect Storm for Bitcoin's Potential Upswing

According to a recent report, CK Zheng believes that neither the Democratic nor Republican parties have effectively addressed the nation’s escalating debt or deficit, which could create favorable conditions for a Bitcoin rally. 

Related: Trump’s First Public Bitcoin Purchase Draws Attention as BTC Rallies

Historically, Bitcoin has thrived in political uncertainty, and Zheng expects this election cycle to be no different.

Zheng’s argument is backed by data from CoinGlass, which shows that Bitcoin’s price has consistently surged during the fourth quarter (Q4) in several key years. 

Since 2013, Bitcoin has posted gains of over 50% six times in Q4. This trend is often bolstered by Bitcoin halving events, which reduce the rate at which new Bitcoin is mined, adding scarcity to the asset. 

For instance, the 2020 halving event and the US presidential election created the right room for growth as Bitcoin surged by 168% in Q4 alone. With another halving event in April 2024 behind us, many expect similar bullish momentum as the market heads toward the election.

At press time, Bitcoin trades at $64,400 per coin, reflecting a 1.47% increase over the past week. The November election and the recent Bitcoin halving could drive further upward movement.

Zheng also pointed out how macroeconomic factors may further strengthen Bitcoin’s position. 

He highlighted the Federal Reserve's recent decision to cut interest rates by 50 basis points as potentially bullish for Bitcoin and other risk-on assets, which could also see BTC price follow trends in the NASDAQ.

JUST IN: Federal Reserve cuts interest rates 50 bps, the first rate cut since 2020.
The new interest rate target is 4.75 to 5%.

—>The “dot plot” signals interest rate down to 4.25 to 4.5% by the end of the year (2 add'l cuts likely)

Vote today was 11 in favor and 1 against pic.twitter.com/qmRFhcZoAX

— Heather Long (@byHeatherLong) September 18, 2024

A federal rate cut occurs when the Federal Reserve lowers interest rates to stimulate economic growth, making borrowing cheaper and encouraging spending. Investors often seek greater returns in cryptocurrencies in a low-interest-rate environment, which may drive up Bitcoin's price.

Zheng’s analogy of the NASDAQ suggests that as the stock market, represented by the NASDAQ, performs well, Bitcoin could also see price increases. This indicates a correlation between investor sentiment in traditional equities and cryptocurrencies. 

While uncertainties remain about the US election and broader economic environment, Zheng believes these elements could create the perfect storm for Bitcoin to reach new highs in the months ahead. 

Crypto World Hopes for a Pro-Crypto Candidate to Win

As the US presidential election approaches, the cryptocurrency community is eager for a pro-crypto candidate to emerge victorious. Although Zheng anticipates a Bitcoin rally regardless of the election outcome, major crypto traders and investors are hoping for policies that will support the digital currency industry.

The election features a high-stakes showdown between Donald Trump and Kamala Harris, with all 435 House of Representatives seats and 33 Senate positions up for grabs. 

The future of cryptocurrency has become a pivotal issue, revealing a stark contrast between the two leading candidates.

REMINDER:
All 435 seats of Congress and 33 seats of Senate are up for reelection. Do your research on each member in your area because THEY write the laws that the president will sign. We don't wont a congressional gridlock.https://t.co/HawOoK7esW

— 🌊Rhonda McMillan 🎨3D Artist (@SilverARTicfox) September 28, 2024

Trump has actively sought the support of crypto enthusiasts by pledging to transform the US into the “crypto capital of the planet” and plans to establish a “strategic national bitcoin stockpile” if re-elected back to the White House.

On the other hand, the Biden administration, with Harris as vice president, has taken a more cautious approach, implementing strict regulations on crypto firms. 

While Harris has remained relatively silent on the issue, she recently indicated her willingness to support policies encouraging the growth of emerging technologies, including AI and cryptocurrencies. 

NEWS: VP Harris says at a fundraiser on Wall St. that she "will encourage innovative technologies like AI and digital assets while protecting our consumers and investors."

— Jennifer Epstein (@jeneps) September 22, 2024

With the elections approaching, the hope is that a favorable outcome will pave the way for more supportive regulation to propel cryptocurrency growth in the US.