The elections in the United States will impact the price of bitcoin.
Iván Paz explains the importance of paying attention to different metrics to make good decisions.
Bitcoin (BTC) is opening a week that will likely be highly volatile. The elections in the United States that will take place tomorrow, November 5, could define the short-term trend for BTC.
The Bitcoin investors seem to prefer a victory for the Republican candidate and former president, Donald Trump.. His promises to establish a national bitcoin reserve and boost the cryptocurrency mining industry have been well received by the electorate.
On the other hand, Democrat Kamala Harris does not generate as much support among the bitcoiner public. In general, the market seems to understand that a government of hers would be the continuation of the administration of the current president, Joe Biden (who does not enjoy much affection from cryptocurrency investors, since during his administration, the SEC has placed several obstacles to the development of the industry).
But, Beyond the short term, expectations—in general—are bullish for bitcoinno matter who the new president of the United States is. The digital currency created by Satoshi Nakamoto has its own reasons to continue generating demand and, therefore, rising in price.
This information portal has reported, for example, that analysts at the research firm, Bernstein, think that bitcoin could reach $200,000 in 2025 (even though, according to them, it could hit $40,000 again if Kamala Harris wins).
Iván Paz Chain, CEO of Trading Different, is also optimistic in the medium and long term. In conversation with CriptoNoticias during LaBitConf 2024, The businessman said: “I am calmly projecting bitcoin above $140,000.”.
However, he added that is not closed to considering other possibilities during the march: «We are going to be analyzing all our indicators and charts, because if the price, for example, reaches $90,000 and we see strong selling pressure from miners, ETFs and other whales, we will have to consider take short-term profits.
The CEO of Trading Different is aware that the elections in the United States will play a fundamental role with the price of bitcoin in the short term:
«Without a doubt, during the elections there will be volatility in the market, whether up or down, to take out the overleveraged. After that volatility, the price will take its natural and organic path, which will probably be upwards.
Iván Paz Chain, CEO of Trading Different.
The interview with Iván also led to a conversation about trading in general and market manipulations, among other topics. In the coming days, CriptoNoticias will publish the transcript of this dialogue in its entirety.
ETF issuing companies are also bullish on bitcoin
Optimistic projections like those of Iván Paz are not an isolated case. Several investment firms that manage bitcoin ETFs in the United States have also expressed confidence that the digital currency could reach much higher prices in the near future and in the long term. These companies argue that the growing demand for spot ETFs is creating bullish pressure that could boost the value of BTC.
The VanEck company has stood out for its prediction that bitcoin could reach USD 3 million by 2050. According to Matthew Sigel, head of research at VanEck, “bitcoin will become a reserve asset used in global trade and central banks will have a 2% allocation in it.” This forecast reflects a compound annual growth rate of 16% in the coming decades, which for Sigel is an achievable goal if the current institutional momentum is maintained.
Another prominent figure is Cathie Wood, founder of ARK Invest, who is also optimistic. In March, he estimated that bitcoin could reach $1 million by 2030. After the approval of spot ETFs, Wood revised his estimate upward, arguing that if institutional investors allocate more than 5% of their portfolios to bitcoin, the price could reach up to 2.3 million dollars.
For its part, Bitwise has also shared bullish predictions. Jeff Park, head of alpha strategies at the firm, indicated that a Donald Trump victory in the elections could take bitcoin to $92,000 in the short term, while Matt Hougan, investment director, projects a price of $2.$50,000 in the next four years thanks to institutional adoption and support of ETFs.
Clarification: This article is written for informational purposes. It does not constitute an investment recommendation or financial advice. Each investor is responsible for conducting his or her own research.
