Bijing.com reports:
BTC’s 8% election pump outperforms the US stock market
Despite post-election optimism, whale entities continue to reduce exposure
Bitcoin [BTC]
On U.S. election night, the price of Bitcoin on the Coinbase exchange surged nearly 8%, reaching a record high of $75,410.
Despite slight profit-taking at the time of writing, BTC remains just below its record level, valued at $73,800.
Although all markets rebounded under Trump’s apparent leadership, the “Trump trade” seems to have performed better for Bitcoin than for the US stock market.
In the past five trading days, Bitcoin has risen 6% compared to the S&P 500 Index; the 500 Index (SPX) and the tech-heavy Nasdaq Index only surged by 1%.
Year-to-date, BTC’s gains have expanded to 67%, nearly 45% higher than SPX’s 22%. In short, BTC’s performance is three times that of the US stock market.
Post-election BTC outlook
Based on BTC’s historical performance following US elections, this cryptocurrency may continue its stellar upward trend.
According to BTC analyst Stockmoney Lizards, the recent surge may be the starting point for a rebound towards the $100,000 target. He stated:
“#Bitcoin. Remember, this is just the beginning. Today and tomorrow, we can expect some volatility. The next few weeks will be overwhelmingly green.”
However, CryptoQuant founder Ki Young-Ju warned that the market should not overly lower expectations for BTC returns. He expects BTC can pump up to 30% to 40% (approximately $96,000 to $103,000).
He pointed out that long-term holders (LTH) holding stocks during a bear market might start selling stocks and booking profits. Additionally, Young Ju said:
“From now on, it might rise 30-40%, but it won’t rise 368% like we saw from $16,000. It’s time to consider gradually selling out, not all in, IMO.”
Interestingly, Young Ju’s outlook seems to be underway as the number of whale entities holding over 1K BTC is declining.
According to Glassnode, whale entities holding over 1K BTC decreased from 1,690 in mid-October to 1,658 on November 5. This indicates that some large participants have reduced BTC exposure over the past two weeks.
Read Bitcoin [BTC] Price Prediction 2024–2025
It remains unclear whether this is pre-election risk-off or a long-term profit-taking trend for BTC printing a new ATH.
Read Bitcoin [BTC] Price Prediction 2024–2025
In conclusion, analysts’ assessment of BTC’s long-term outlook is positive. During this cycle, BTC could reach the range of $90,000 to $100,000. However, whale entities have already started reducing risk exposure, and the CryptoQuant founder believes this trend may intensify in the future.
