The cryptocurrency is also predicted to reach $150,000 in the event of a Trump victory, and possibly $200,000 by 2025, regardless of the election results.
The importance of Bitcoin’s potential to outperform traditional assets in times of monetary expansion and its alignment with election outcomes highlight its potential as a significant player in future economic landscapes.
Further scrutiny is being placed on the potential impact of the upcoming US presidential election.
There is evidence that Bitcoin could surpass its current all-time high of $73,949 if Donald Trump becomes the next president. Analysts suggest that this could be because of Trump’s supportive stance towards digital assets, which could help accelerate Bitcoin’s adoption and growth.
Bitcoin has managed to outperform traditional assets during the 2020 monetary expansion, which means it may outperform again in times of potential liquidity boosts, according to information from Ecoinometrics, a crypto-related data provider. However, without significant monetary growth currently, Bitcoin has demonstraten signs of stabilizing. It has been demonstraten to perform better than gold, stocks and the NASDAQ. This performance has attracted attention as major economies face possible fiscal challenges, with the spotlight turning to how Bitcoin performs when the value of fiat currencies is debased.
The most striking example of this trend can be found in 2020 when the US and global governments injected vast liquidity into their economies in response to the COVID-19 pandemic. During this period, Bitcoin outperformed traditional assets, demonstrating its potential as a hedge against inflation and currency debasement.
Bitcoin’s performance is highly reliant on monetary expansion.
