With Bitcoin currently trading at $64,400, down 2% in the last 24 hours, many experts remain optimistic about its future performance. Factors like political uncertainty, halving events, and increased liquidity suggest that Bitcoin may be gearing up for a major rally in the final quarter of 2024.
Bitcoin's Post-Election Surge
According to CK Zheng, chief investment officer of ZX Squared Capital, Bitcoin’s price is likely to benefit regardless of who wins the upcoming United States presidential election. In an interview, Zheng pointed out that both political parties have failed to address rising US debts and deficits, a factor he believes will work in Bitcoin’s favor, especially after the election. CoinGlass data shows that Bitcoin has historically seen gains during periods of political uncertainty, and the 2024 election may follow this pattern. Notably, in Q4 2020, following the last halving, Bitcoin surged by 168%.
Influence of Other Factors
Zheng emphasized that Bitcoin’s latest halving event in April, along with rising liquidity, could further fuel price movements in the months ahead. He noted that the Federal Reserve’s potential 50 basis point interest rate cut could also positively impact Bitcoin, especially if the US economy achieves a soft landing. In this scenario, Bitcoin’s price is likely to correlate closely with the NASDAQ, indicating broader market confidence in risk-on assets. Samantha Yap, CEO of YAP, added that the surge in retail interest following Bitcoin rallies often triggers a wave of media attention. However, Yap argued that the real focus should be on the increasing adoption of Web3 applications, which could drive broader industry growth.
Strengthening the 'Digital Gold' Narrative
As traditional markets remain volatile, Bitcoin’s narrative as ‘digital gold’ continues to gain momentum. Leo Fan, co-founder of Cysic, believes this narrative will attract more institutional investors, particularly those looking for a hedge against macroeconomic instability. Fan noted that liquidity is gradually returning to the market, setting the stage for stronger Bitcoin price movements in the near future.
In summary, Bitcoin holds significant growth potential in the final quarter of 2024 due to the combination of political uncertainty, halving events, and increased liquidity. Experts also highlight the importance of growing Web3 applications and strengthening Bitcoin’s position as 'digital gold'.
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