Bitcoin could soon hit six figures regardless of who wins U.S. election, investors say
The initial wave of optimism sparked by pro-crypto sentiments from certain political figures has begun to subside, and many crypto investors are adopting a more balanced view. Industry experts predict that bitcoin will likely reach six-figure values by 2025, irrespective of the election results.
The cryptocurrency’s performance is seen as more closely tied to broader fiscal and monetary policies of countries and sovereigns, rather than being dependent on any single political candidate. Fears about potential limitations on bitcoin’s price under different administrations are generally considered overblown.
The cryptocurrency market has shown resilience and is not centered solely on the U.S. It has not reacted negatively to major events from either side of the political spectrum. The focus is more on opportunities and regulation for U.S.-based users, rather than the price of what is essentially a global commodity.
Experts suggest that the crypto industry needs to learn from traditional finance by lobbying and aligning with both sides of the political aisle to succeed regardless of election outcomes. Building a large ecosystem requires a non-partisan approach.
While some observers may overemphasize the risks associated with certain political outcomes, recent signals suggest a de-escalation of anti-crypto rhetoric compared to previous administrations. The election results are expected to have minimal effects on bitcoin’s performance over the next 12 to 18 months.
Several factors contribute to bitcoin’s continued growth and stability:
- Ongoing work by firms to provide ETF access
- Anticipated interest rate cuts
- Bitcoin’s development as an institutional-grade asset
Bitcoin has been trading between $55,000 and $70,000 for most of 2024, after reaching its all-time high above $73,000 in March. Investors generally expect this price range to continue until the U.S. presidential election. However, election news has recently had less impact on bitcoin’s price, which is more influenced by macroeconomic developments.
While some speculate that the election could serve as an immediate catalyst for bitcoin, with different potential outcomes affecting its price, experts believe that over the medium term, these effects will be limited. Bitcoin has historically performed well even during periods of governmental opposition, being the top-performing asset in all but three years since 2012.
In conclusion, while short-term price fluctuations may occur based on election results, the long-term outlook for bitcoin remains positive. The cryptocurrency’s performance is expected to be driven more by global economic factors and institutional adoption rather than by U.S. political outcomes.