Neither side has effectively explained how they will tackle the problem of debt and deficit that is problematic for the country, said the hedge fund manager.
The presidential election in the United States will inevitably affect the Bitcoin price in one way or another, says the head of ZX Squared Capital.
Bitcoin halving in April has previously pushed for a strong Q4, and both US Presidential candidates have never addressed an issue that could favor Bitcoin, as CK Zheng, Chief Investment Officer of ZX Squared Capital, a crypto hedge fund, revealed to Cointelegraph.
“Especially given that during this election, the American Republican party and the Democratic party do not adequately consider accounts continuously growing US debts and deficits, this will be very beneficial for Bitcoin after the American elections.”
Bitcoin (BTC) tickers are down to $63,498.32 and have also relied on the unknowns of the prior US presidential elections. Zheng stated it will be similar again this time around.
Seasonality data from CoinGlass also reveals that Bitcoin tends to rise in the last quarter, rising over 50% half of the time since 2013. That said, years in which Bitcoin halving events occur have, more often than not, propelled those gains.
Thus, during the 2020 halving, BTC had a quarterly rise of an astounding 168%—ditto the last time the US went through a presidential race.
According to Zheng, there’s evidence pointing to Q4 in the Bitcoin chart or shortly after when this market will achieve a new All-Time High.
However, Samantha Yap, CEO and founder of the Web3 PR firm YAP, stated to Cointelegraph that Bitcoin rallies and price increases are “the least interesting.”
“What matters is the increase in citizens’ retail interest in various products within the crypto space that comes next.”
Another factor is that the media pays attention to whatever gains retail attention, which initiates a chain of media interest. During these occurrences, the belief within the crypto and Web3 landscape is that there are additional utilities and approaches that are more approachable for novice customers to engage with.
Zheng also said that the Fed’s 50bps interest-rate cut is ‘bullish’ for Bitcoin and risky assets, provided the US economy can land a ‘soft landing.’
Soft landing refers to the central bank’s aim to increase interest rates to such a level that the economy isn’t overheated and inflation is controlled, yet decrease rates enough to avoid an economic slump.
According to Zheng, if the Federal Reserve succeeds, then Bitcoin’s price should once again move in tandem with NASDAQ.
Source: Crypto Rover
Still, the slow return of liquidity to the market will create the foundation for bigger price fluctuations in the future, as Leo Fan, founder of the zero-knowledge proof generation and verification layer 1 Cysic, noted:
“Bitcoin continues to gain narrative traction as ‘digital gold’ and an asset for storing value during macroeconomic upheavals. This will attract more institutional capital, particularly as more conventional equity markets remain dicey.”
Today, our main cryptocurrency, Bitcoin, is at $64,400, which is 2% less than its position 24 hours prior.