I don’t know about you, but speculation surrounding the potential price of Bitcoin seems to have been louder than normal recently. It’s almost as if a major event added fuel to the fire and sent the market into a bit of a frenzy. Oh, wait. It did!
The event I am talking about here is the recent assassination attempt against Donald Trump. Hours after the fatal shooting, the price of Bitcoin rose above $60,000 and now stands at around $64,000 (at the time of writing).
Some market analysts expect the price of Bitcoin to rise even more if there are any further signs of a Trump victory.
But why did the assassination attempt send Bitcoin soaring?
It all has to do with Trump’s, very pro, stance on Bitcoin. The former president has been vocal about his support for cryptocurrency and recently spoke to Bloomberg Business Week about plans for a ‘US Crypto Strategy’.
Trump believes that the US should lead in the cryptocurrency industry and seems very eager to get there before China does!
What would a Trump victory mean for the price of Bitcoin?
A Trump victory would be beneficial for the cryptocurrency space. In fact, Standard Chartered’s head of forex and crypto research, Geoffrey Kendrick, recently shared his predictions that Bitcoin could hit $100,000 by US election day and reach $150,000 by the end of 2024.
The assassination attempt against Trump has led many to believe that the business tycoon will win, which explains the optimism currently circulating Bitcoin.
Trump’s pro-Bitcoin stance has captured the support of the broader crypto community and set him apart from anti-crypto Biden.
To me, Trump’s views on Bitcoin seem to be a bit of a political play, but who knows for sure?
Nevertheless, the US election season has put Bitcoin on a trajectory to hit $100ka much sooner than many expected.
Is $100k closer than we think?
So, Will Bitcoin Really Hit $100k By Election Day? The answer seems to be a resounding ‘yes’. However, it is important to understand other factors that can affect the price of the cryptocurrency.
After all, Trump is just one cog in quite a complex machine!
Reduced US inflation
One important factor that can affect the price of Bitcoin is US inflation data. The most recent US CPI report sent the price of Bitcoin up by two percent after the inflation rate came in at a negative 0.1 percent.
Slowing inflation rates have led to speculation that the US Federal Reserve will cut interest rates this year.
Rate cuts can boost the amount of money people can afford to invest in riskier assets, such as Bitcoin. This has led many analysts to believe that rate cuts could cause the price of BTC to climb even further.
Nothing is set in stone yet. However, the CME Fed Watch tool puts the chance of rate cuts at 70 percent, which is quite likely!
Bitcoin’s 4-year cycle
Another interesting factor to be aware of is Bitcoin’s 4-year cycle. This refers to the Bitcoin halving event, which occurs every 4 years.
Halving reduces the reward for mining Bitcoin, which reduces the rate at which new Bitcoins enter circulation. This reduces the total new supply of Bitcoin every four years.
The most recent Bitcoin halving took place in April this year and the market is waiting to feel the effects. Historically, halving events have been positive for the price of Bitcoin.
After the 2020 halving, Bitcoin rose to $60,000 (it was trading at around $9,000 before the halving event!). It wasn’t until a few months after the halving that Bitcoin reached its new all-time high – the halving took place in May 2020 and the coin didn’t reach $60,000 until March 2021.
History has a habit of repeating itself and if it does, the full effects of the most recent Bitcoin halving may not be felt until early 2025.
Considering the monumental growth that Bitcoin has experienced in 2020, it seems plausible to me that the coin is on its way to $100k!
Of course, it is impossible to predict the future and there is no way to know for sure if Bitcoin will reach $100k. Investing in cryptocurrencies is high risk and you should do your own research before making any decisions.
If you’re interested in taking advantage of Bitcoin’s potential but don’t feel confident enough to buy cryptocurrency directly, check out our guide on how to invest in Bitcoin without buying Bitcoin.
Here we cover three ways you can add Bitcoin to your portfolio without navigating the complicated world of decentralized finance!
Jasmine Birtles is the founder and CEO of MoneyMagpie.com. If you’re a fan of Bitcoin, or investing in general, sign up for their free investment newsletter here.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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