The US presidential election on November 3, 2020, resulted in significant market volatility, with Bitcoin (BTC) reaching a new all-time high of $75,000 on November 6. The favorable election scenario for Donald Trump and the closing of leveraged positions led to this significant rise in Bitcoin prices.
Leveraged traders were responsible for the initial spike, while spot trading is expected to cause actual price appreciation for Bitcoin. Analysts, such as Pav Hundal from crypto exchange Swiftyx, believe that the election of Trump will bring back the “summer of cryptocurrencies” and trigger an immediate revival of demand.
However, Hundal also mentioned that if there is no real interest in cryptocurrencies and they are driven only by hype, their exchange rate will eventually correct back to their real value. Markus Thielen, head of 10x Research, estimates that Bitcoin’s exchange rate could reach $100,000 in the first quarter of 2025 if market conditions develop favorably.
The options market currently sees a 15% chance of this happening.
