Bitcoin continues to set new records, hitting an all-time high of $81,500 last night before slightly falling back to its current price. While crypto investors remain cautious, experts from CryptoQuant say that Bitcoin is showing a solid foundation, following the bullish trend seen in previous US elections.
According to the weekly report, a positive sign is that BTC is currently priced at a reasonable level and has not been pushed too high. This suggests that positive factors from the upcoming election could become the driving force for a strong growth for Bitcoin.
In the three most recent US presidential elections in 2012, 2016 and 2020, Bitcoin increased by 22%, 37% and 98% respectively from election day to the end of the year. By 2024, Bitcoin will continue to maintain a similar growth momentum, surpassing its previous record high of $73,750 to reach a new peak of $81,500.
Just hours before the election results were announced, BTC was trading at around $67,000, slightly above the average realized price of current holders. This reflects a fair valuation of Bitcoin, similar to the situation before the most recent elections in 2016 and 2020.
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The demand for Bitcoin is increasing at a similar pace to previous elections. In 2016, demand only started to recover strongly in late November. In contrast, 2020 saw a steady increase in demand that continued through the end of the year. By 2024, demand has turned positive since late September and is currently growing at 248,000 BTC per month, the fastest pace since April 21. This growth momentum is often a precursor to significant Bitcoin price increases.
