COINOTAG News, November 4th – According to CoinDesk’s senior analyst James Van Straten, market observers should prepare for potential volatility in the crypto market as the U.S. presidential election approaches. This uncertainty could influence cryptocurrency prices in the short term. However, if historical patterns are observed post-election, we might witness a notable rebound in Bitcoin (BTC). Having been created in 2009, Bitcoin is on the cusp of experiencing its fourth presidential election, with data indicating that it has consistently rebounded after the past three elections without retracing to its election day price. Should this trend continue, Bitcoin could see significant price appreciation within the next year.
Currently, Bitcoin is perceived as undervalued when compared to earlier market cycles. This assertion holds true whether analyzing the cycle’s low point in November 2022 or the upcoming halving event this April. Notably, this halving cycle has been characterized by lower performance, with Bitcoin’s price merely increasing by 7% since the last halving, reinforcing the theory of diminishing returns.