As the U.S. presidential election approaches, investors are looking at how the outcome will impact the financial markets, including the cryptocurrency market. In recent weeks, crypto assets have been on the rise, with factors like Chinese stimulus, central bank rate cuts, and election speculation driving the gains.
Historical data shows that the second half of October is typically a bullish period for financial assets like stocks, and the same trend seems to apply to cryptocurrencies as well. For example, over the past decade, bitcoin has seen double the returns in the second half of October compared to the first half.
The upcoming election is expected to have a significant impact on cryptocurrency prices, with tokens like Cardano (ADA) and Dogecoin (DOGE) likely to see the most movement. Data from ETC Group suggests that bitcoin could move up to 10% in either direction based on the election results, potentially reaching a new all-time high.
Looking beyond the election, the options market is showing a bullish bias towards bitcoin, with open interest concentrated at strike prices of $70,000, $80,000, and even $100,000. Analysts believe that a move towards $73,000, the previous all-time high, is likely before the election.
In addition to the election speculation, historical data from YCharts indicates that the stock market tends to bottom out in September or October during presidential election years and then rally into November. This trend is already playing out with the S&P 500 and Nasdaq showing steady gains since last month.
Overall, the cryptocurrency market is experiencing bullish momentum leading up to the U.S. election, with investors closely watching how the outcome will shape the future of digital assets. With various factors at play, including election results, stimulus measures, and central bank policies, the next few weeks are likely to be eventful for crypto traders and investors alike.