ZX Squared Capital’s CK Zheng anticipates that the forthcoming U.S. presidential election will have a favorable impact on the price of bitcoin.
The crypto ruler could receive even more support from the fact that it is a halving year, as Bitcoin has historically rallied during election periods. Santiment’s on-chain analytics signal a potential reversal due to elevated market sentiment, despite this optimism. Meanwhile, Howard Lutnick, the CEO of Cantor Fitzgerald, is advocating for the classification of Bitcoin as a commodity and has also advocated for more transparent regulations. The current level of investor interest in BTC is further evidenced by the recent inflows of over $1.1 billion into US Bitcoin ETFs over the past week.
ZX Squared Capital’s chief investment officer anticipates that Bitcoin’s value will capitalize on the forthcoming presidential election in the United States, regardless of the outcome. CK Zheng posits that the Republican and Democratic parties have failed to adequately address the increasing debts and deficits in the United States, a situation that could potentially benefit Bitcoin.
Bitcoin has historically demonstrated favorable performance during periods of presidential elections in the United States. Zheng anticipates that the trend will persist, particularly in the aftermath of the April halving event, which has historically resulted in robust fourth-quarter performances.
In the fourth quarter, Bitcoin has frequently experienced a surge in value. CoinGlass data indicates that it has experienced a greater than 50% increase on six separate occasions since 2013. Events that involve halving tend to exacerbate these advantages. The cryptocurrency experienced a 168% increase in the final quarter of 2020, which coincided with the most recent US presidential election and the halving of Bitcoin. Zheng is of the opinion that Bitcoin could achieve a new all-time high by the conclusion of Q4 or shortly thereafter.
Although the price of BTC is typically significantly affected by the halving, the CEO and founder of PR firm YAP suggests that the greater impact is the subsequent surge in retail interest. This attention typically results in a media hysteria, which in turn attracts additional attention to the crypto industry. Yap also believes that these instances offer the ideal opportunity for the industry to demonstrate more practical and accessible applications that are easier for new users to employ.
Zheng also noted that Bitcoin could benefit from the Federal Reserve’s recent 50 basis point interest-rate reduction if the US economy achieves a gentle landing. An inflation-controlled gentle landing could potentially increase liquidity and risk-on assets such as Bitcoin, without triggering a recession. Zheng is of the opinion that Bitcoin’s price will likely follow the NASDAQ if the Federal Reserve achieves success.
Leo Fan, the founder of Cysic, a zero-knowledge proof platform, also noted that Bitcoin’s status as “digital gold” is becoming more prominent as institutional investors seek to protect themselves against economic instability.
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