After the U.S. election, Bitcoin will move closer to its all-time high and shift to a liquidity-friendly environment.
“After all of this forced selling has passed, it’s a typical seasonal pattern where Bitcoin tends to struggle within one to three months after the halving, which is in April,” Matthew Sigel, head of digital asset research at VanEck, told CNBC on Aug. 19.
In July, the German government sold 49,858 bitcoins for $2.6 billion.
Meanwhile, about 70% of creditors of bankrupt cryptocurrency exchange Mt. Gox have been repaid, and data shows many still hold bitcoin.
Recent surge in global liquidity
At the same time, some analysts noted that global liquidity was beginning to surge.
“Global liquidity has begun to increase and a pattern is emerging,” BitVaulty CEO Francesco Madonna wrote in an Aug. 17 X post.
“Global liquidity is finally starting to pick up, will we see the biggest bull run ever in 2025?” added Kook, an anonymous cryptocurrency trader.
As of the time of publishing, Bitcoin is trading at $60,431, according to CoinMarketCap.
Investment strategist Lyn Alden is “not particularly surprised” by Bitcoin’s lack of price action, explaining that “ global liquidity has been flat for two years,” during an Aug. 19 episode of Natalie Brunell’s Coin Stories podcast.
“Bitcoin’s volatility does make sense,” Alden said.
Alden believes that by 2025, when the market shifts to a more “liquidity-friendly environment,” Bitcoin could surpass its current all-time high of $73,679.
Meanwhile, Siegel claimed that the US presidential election in November will be a critical moment for the price of Bitcoin.
He believes that regardless of the election outcome, macroeconomic conditions will remain the same in the coming years.
He said markets must recognize that no matter which candidate wins, we are going to be facing four years of reckless fiscal policy.
Siegel said: Historically, Bitcoin has really peaked at that time, and then he claimed, We are buyers here, and we really think it can recover.
