banner

Bitcoin’s Sideways Streak Could Break Amid U.S. Election Uncertainty

Bitcoin’s price has been stuck in a sideways range for nearly 300 days, frustrating investors hoping for a strong rally in the final quarter of 2024. The cryptocurrency has struggled to break free from its narrow trading range of $59,000 to $65,000, despite the excitement that followed its April halving event.

Longest Sideways Movement Post-Halving

Bitcoin halvings, which occur approximately every four years, typically trigger massive bull rallies. In previous cycles, Bitcoin’s price surged by hundreds of percent in the months following a halving event due to reduced block rewards for miners, which limits the supply of new Bitcoin entering the market. This year’s halving, which occurred in April, initially drove Bitcoin to new all-time highs of over $73,000, with many predicting it could reach as high as $160,000 by the end of 2024.

However, 285 days have passed since the halving, and Bitcoin’s price remains relatively flat. If there is no significant rally in the next two weeks, this will mark the longest period of sideways price movement following a halving in Bitcoin’s history, according to Ki Young-Ju, founder of CryptoQuant.

U.S. Election and Treasury Yields Impact

One of the key reasons for Bitcoin’s stalled price action is the growing uncertainty around the upcoming U.S. elections. Historically, financial markets, including crypto, often experience volatility in the lead-up to major political events. Additionally, rising U.S. Treasury yields have pushed the U.S. dollar higher, drawing capital away from riskier assets like Bitcoin.

Augustine Fan, head of insights at SOFA, explains that higher bond yields, combined with stock market gains, are increasing demand for the U.S. dollar, which is negatively impacting the crypto market. “BTC is hovering around the $60k level again,” Fan said.

Mt. Gox Repayment Extension

Another factor contributing to the lack of momentum in Bitcoin’s price is the extension of Mt. Gox’s repayment deadline. The defunct exchange announced it would delay repayment to creditors until October 2025. This delay may help ease supply pressures in the short term, as fewer Bitcoin will be released into the market.

Will the U.S. Election Spark a Rally?

The upcoming U.S. election could play a pivotal role in Bitcoin’s future price movement. Republican candidate Donald Trump, known for his more crypto-friendly stance, is associated with the decentralized finance project World Liberty Finance. On the other hand, the Democratic Party is viewed as less favorable toward the crypto market. A Republican victory in the election is widely expected to fuel a rally in Bitcoin’s price.

What Needs to Happen for a Bullish Breakout?

For Bitcoin to break out of its current sideways trend, it would need to clear the $69,000 resistance level and hold above it, according to CoinDesk market analyst Omkar Godbole. A breakout at this level would likely signal the resumption of the broader uptrend that began in October 2023, potentially driving Bitcoin toward the $100,000 target anticipated by options traders.

Accumulation Phase and Market Outlook

Periods of sideways movement in financial markets are often seen as phases of accumulation or distribution, where investors either gradually build up their positions or sell off their holdings without causing major price movements. This can lead to high volatility once the price breaks out of the range.

Bitcoin is also emerging from its historically bearish period of August and September, when market activity tends to slow down. October, however, has traditionally been a bullish month for Bitcoin, with most gains happening in the second half of the month, particularly after October 16.

While Bitcoin’s price could rally later in the year, concerns over increased regulatory scrutiny in the U.S. remain. The SEC recently charged several market-making and trading firms, raising questions about potential further regulatory action that could weigh on the crypto market in the coming weeks.

banner

Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

Follow Us

Top Selling Multipurpose WP Theme

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

banner

Crypto feed news

Our team of crypto enthusiasts and market mavens is on a mission to deliver the latest, juiciest, and most insightful updates from the ever-evolving world of cryptocurrencies.

@CryptoFeedNews 2023 All Right Reserved. Designed and Developed by TheDevThingz

Social Media Auto Publish Powered By : XYZScripts.com
Skip to content