Bitcoin eyes 10% swing as US election nears

Bitcoin (CRYPTO:BTC) could experience a 10% price movement in either direction depending on the results of the upcoming U.S. presidential election, according to crypto trader Daan Crypto Trades. 

In a recent post on social media platform X, Daan noted that Bitcoin’s weekly close appeared less clear than usual, emphasizing that the election outcome on November 5 will likely drive the asset’s next significant move.

Bitcoin’s volatility index reached a three-month high on November 3, reflecting increased market uncertainty. 

Last week, Bitcoin nearly touched its all-time high, briefly rising to $74,649 before pulling back due to election-related concerns.

IG Markets analyst Tony Sycamore highlighted that Bitcoin must break through the $74,000 resistance level to confirm an uptrend that could push the price closer to $80,000. 

However, he warned that a drop below $65,000 would indicate the recent rally has faltered, likely returning Bitcoin to a prolonged downward trend.

The market sentiment remains generally optimistic, with many analysts viewing the election as favorable for risk assets like Bitcoin, regardless of the winning candidate. 

Analysts noted that former President Donald Trump has taken a crypto-friendly stance, pledging support for the industry, while Kamala Harris briefly expressed her administration’s interest in digital assets and artificial intelligence.

In addition to election concerns, market watchers are closely monitoring the U.S. Federal Reserve’s monetary policy. 

After a recent 50-basis-point rate cut, further reductions are anticipated, which could strengthen the appeal of crypto assets as lower interest rates make traditional investments less attractive.

At the time of reporting, the Bitcoin price was $68,655.59.