US Election Results Won't Slow Bitcoin's Growth in Q4, Hedge Fund Says
Date: 2024-09-30 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
According to QC Zheng, chief investment officer at hedge fund ZX Squared Capital, Bitcoin's value will rise after the US presidential election, regardless of who wins. He emphasized that neither the Republican nor the Democratic parties have been able to address the growing government debt and deficit, which will ultimately benefit the cryptocurrency.
"Both parties failed to properly address the increasing debt and deficit in the US during the election, which will have a positive impact on Bitcoin, especially after the election," Zheng told Cointelegraph.
Historically, Bitcoin has shown significant growth in the fourth quarter following halvings, and the upcoming period will be no exception. According to CoinGlass, Bitcoin has gained more than 50% in the final quarter of the year six times since 2013, with halvings often amplifying these trends.
During the 2020 halving, Bitcoin rose 168% in the fourth quarter, coinciding with the previous US presidential election. Zheng expects the cryptocurrency to reach a new all-time high in the coming months.
However, Samantha Yap, CEO of PR agency YAP, believes that the rise in Bitcoin’s price itself is not the most important aspect. “What’s more interesting is the increase in retail interest in crypto, which is accompanied by a surge in media attention,” she said. During this period, it is important for newcomers to be able to use more accessible and understandable applications in the Web3 space.
Zheng also added that the Federal Reserve's decision to cut interest rates by 50 basis points could be bullish for Bitcoin and other high-risk assets if the U.S. economy achieves a "soft landing."
"Liquidity is gradually returning to the market, which could set the stage for stronger price moves in the coming months," said Leo Fan, founder of the Cysic platform. Bitcoin continues to strengthen as a "digital gold" and a hedge against macroeconomic instability, which will attract additional investment from large institutional players.
Bitcoin is currently trading at $64,400, down 2% in the last 24 hours.
