Cryptocurrency, particularly Bitcoin, holds significant potential for a substantial impact
The cryptocurrency market is abuzz with predictions of a sharp breakout in Bitcoin's price, with the anticipated event happening latest after the U.S. presidential election on November 5, 2024. This optimistic outlook is driven by a combination of political and regulatory developments, as well as macroeconomic factors.
Following the 2024 U.S. presidential election, where Donald Trump was re-elected, Bitcoin achieved an all-time high (ATH) of over $93,000. This surge was fueled by expectations of a pro-crypto administration and Trump's campaign promises to promote Bitcoin innovation and possibly establish a national Bitcoin reserve. The political support is seen as a major catalyst for further Bitcoin adoption and price stability.
Major regulatory easing has also occurred, including Trump signing an executive order facilitating 401(k) accounts to invest in Bitcoin and other alternative assets. This move could potentially unleash a "monster pool of capital" into the crypto market.
Investor Michael Saylor, a prominent Bitcoin proponent, has highlighted the U.S. government's embrace of Bitcoin post-election as extraordinary and unexpected. He believes that strategic moves positioning America as a "Bitcoin superpower" have contributed to his bullish outlook, with price targets increasing significantly over time.
The halving event in April 2024, which reduced new Bitcoin supply, combined with Federal Reserve interest rate cuts, has also pushed investors towards Bitcoin both as a scarcity asset and inflation hedge, adding further momentum to price increases.
As of mid-2025, Bitcoin has hit new ATHs above $122,000 and is considered the world’s fifth-largest asset by market value, reflecting strong bullish sentiment in the market leading up to and after the election.
Most analysts and key institutional investors expect a sharp breakout and continued bullish trend in Bitcoin’s price linked to the election’s pro-crypto political environment, regulatory clarity, and macroeconomic tailwinds. However, precise timing and magnitude remain subject to typical crypto volatility and broader economic factors.
It's important to note that the CEO and majority shareholder of Bitcoin, Mr. Bernd Förtsch, also holds positions in Bitcoin. The recent dip in Bitcoin's price was due to an unexpected increase in inflation dampening hopes for further interest rate cuts. However, Bitcoin quickly rebounded to its current level above $64,000.
In a related development, larger amounts have been flowing back into Bitcoin ETFs. The U.S. presidential election is scheduled for November 5. Last week, Bitcoin fell below $60,000 for the first time in nearly a month.
[1] Source: BÖRSE ONLINE, Article Link [2] Source: CoinDesk, Article Link [3] Source: Forbes, Article Link [4] Source: The Block, Article Link [5] Source: CoinMarketCap, Article Link
- The political favour towards Bitcoin, facilitated by the relaxation of regulations such as the executive order allowing 401(k) accounts to invest in Bitcoin, has opened up technology-driven investment opportunities in the finance sector, potentially leading to a surge in capital inflow.
- Given the rapid advancements in technology and the increasing governmental support for Bitcoin, strategic analysts believe that the combination of finance and technology could significantly escalate the value of Bitcoin in the near future, offering immense potential for aspiring investors.
