Bitcoin is expected to surge before the US election, but a sell-off may occur afterwards.

Bitcoin returned to the $70,000 mark last night. Analysts predict that as the U.S. presidential election on November 5 approaches, the price of Bitcoin may rise; however, selling pressure may follow thereafter.

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Bitcoin Set to Surge Before Election Day

According to The Block, multiple analysts believe that the price of Bitcoin may surge before the U.S. election on November 5th, but caution that there could be a sell-off in the days following the election regardless of the outcome.

Edouard Hindi, Chief Investment Officer at Tyr Capital, suggests that profit-taking pressure in the days following the election could weigh on Bitcoin's price, but buyers on dips are likely to keep support above $60,000. However, Bitcoin may regain momentum in the mid-term regardless of the election outcome and aim for new highs in 2024.

Ryan Lee, Chief Analyst at Bitget Research, also emphasizes that Bitcoin's price is expected to rise significantly in the coming week as the U.S. prepares for voting next Tuesday.

He believes several factors support a potential increase in Bitcoin, especially the expectation of a rate cut by the Federal Reserve. The market generally expects the Fed to cut rates by 25 basis points on November 7th, bringing rates to a range of 4.5% to 4.75% to stabilize economic growth.

Potential Selling Pressure on Bitcoin

Lee also highlights that upcoming events could impact market dynamics post the U.S. election. For instance, Microsoft's board is set to vote on investing in Bitcoin, with the "Bitcoin Investment Assessment" to be voted on at the annual shareholder meeting on 12/10.

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If the board votes against investing in Bitcoin, it could dampen market enthusiasm and hinder Bitcoin's growth, while a decision to invest by Microsoft could trigger a significant market upswing.

Lee predicts with a 70% confidence interval that Bitcoin's trading price next week could range between $66,000 and $75,000, while Ethereum's trading price could range from $2,350 to $3,200. He also mentions that liquidity improvement could lead to increased activity in altcoins.

He also notes that Trump's recent appearance on the Joe Rogan Experience has garnered over 32 million views, raising his Polymarket odds to over 66%. However, QCP Capital analysts suggest that despite the correlation between cryptocurrencies and "Trump trades," the relevance of Bitcoin to Trump's odds seems to be diminishing.

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