Market news
Market news
16.10.2024 | If the dynamics of 2016 and 2020 repeat, bitcoin could rise to $120,000-180,000
On Monday, 14 October, the price of bitcoin surged above $65,000. The following day, 15 October, a local peak was recorded at $67,760. The last time the leading cryptocurrency reached such heights was on 29 July. The positive momentum was driven by a rise in US stock indices, particularly the S&P500. Another factor was the anticipation of China’s government expanding stimulus measures for the national economy.
In addition to these, two other reasons can be highlighted. One of them was a speech by US presidential candidate Kamala Harris on Monday, 14 October, where she promised to support regulatory frameworks for cryptocurrencies. The specifics of her plan remain unknown, and it is possible this is merely election rhetoric. Nevertheless, this promise has sparked some hope that Harris will not continue Biden's hardline policy towards the digital industry.
The second reason pushing BTC’s price upward was the news that the crisis managers of the bankrupt crypto exchange Mt. Gox had postponed their plans to return stolen bitcoins to creditors by a year. Reportedly, Mt. Gox accounts hold coins worth around $10 billion. Payouts to creditors began in July of this year and were expected to be completed in the coming months. The release of such a large volume of coins onto the market could have significantly lowered prices. However, it was recently announced that the distribution of tokens will now be completed by the end of October 2025. Therefore, a potential dump for this reason has been averted.
Analysts note that similar price movements were observed ahead of the US presidential elections in 2016 and 2020. In 2016, BTC traded within a very narrow range for more than three months. However, three weeks before the election, it started to rise, doubling in value by early 2017.
A similar scenario unfolded in 2020, with sideways movement for six months, followed by a bull rally three weeks before the vote. As a result, bitcoin rose from $11,000 to nearly three times that amount—$42,000—by early January. Should something similar happen this time, bitcoin could greet New Year's 2025 in the $120,000-180,000 range.
In addition to these, two other reasons can be highlighted. One of them was a speech by US presidential candidate Kamala Harris on Monday, 14 October, where she promised to support regulatory frameworks for cryptocurrencies. The specifics of her plan remain unknown, and it is possible this is merely election rhetoric. Nevertheless, this promise has sparked some hope that Harris will not continue Biden's hardline policy towards the digital industry.
The second reason pushing BTC’s price upward was the news that the crisis managers of the bankrupt crypto exchange Mt. Gox had postponed their plans to return stolen bitcoins to creditors by a year. Reportedly, Mt. Gox accounts hold coins worth around $10 billion. Payouts to creditors began in July of this year and were expected to be completed in the coming months. The release of such a large volume of coins onto the market could have significantly lowered prices. However, it was recently announced that the distribution of tokens will now be completed by the end of October 2025. Therefore, a potential dump for this reason has been averted.
Analysts note that similar price movements were observed ahead of the US presidential elections in 2016 and 2020. In 2016, BTC traded within a very narrow range for more than three months. However, three weeks before the election, it started to rise, doubling in value by early 2017.
A similar scenario unfolded in 2020, with sideways movement for six months, followed by a bull rally three weeks before the vote. As a result, bitcoin rose from $11,000 to nearly three times that amount—$42,000—by early January. Should something similar happen this time, bitcoin could greet New Year's 2025 in the $120,000-180,000 range.
