Bitcoin, The Elections & The End Of The Year

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11 Aug 2024

An Unfolding Story
Crypto investors have survived an icy cold Crypto Winter and are now waiting, anticipating a blistering Summer. Bitcoin has peaked at approximately $73.4K this year and many are expecting $100K by the yearend. I expect BTC to begin printing new all-time highs in September so $100K by December is well within reach. Investors need to remember that in terms of percentage points, this is a relatively modest move for Bitcoin, given the current phase of the market.
Studying cycles will reveal how certain points in the journey experience accelerated growth when compared with the average returns of the entire cycle. This is important to remember. If you were around during the previous cycle, you remember that there was a battle at $20K (previous ATH) which caused a period of stagnation. You will note that we are experiencing a similar dynamic with last cycle’s all-time high of $69K.
This is not uncommon and while many believe the market to be artificially hindered, this is standard practice for Bitcoin, regardless of manipulative forces. If the recent crash was the final bear trap, higher highs are not too far off. The market could easily bang around between $50K and $65K for the next 30 or 40 days. It’s not ideal, but it’s also within the realm of possibilities. Patience is key.
Appropriate Action
Crypto investors should always “travel” with a stablecoin allocation. This has been highlighted numerous times over the years and again recently. It’s a key safety measure. Global uncertainty is at an all-time high despite Bitcoin being in season. One has to consider the possibilities of a swan event. My conviction is a financial crash will be avoided at all costs, if possible.
It would be a wasted opportunity. If Trump wins, competitive forces will be looking for a disastrous catalyst to discredit the new leader, and what better way than to experience a financial market collapse under his watch, especially as this has been one of Trump’s biggest selling points: His impact on the economy and financial markets. If Trump gets in, I would expect a crash towards the end of the year or early 2025.
This is my viewpoint and only hindsight can accredit or refute it. I guess we will have to wait and see. That doesn’t mean that a further correction in TradFi and Crypto is out of the question. On the contrary, it’s quite a strong possibility. As Crypto and altcoin investors we want to see Crypto make as much headway as possible by November. We have no control over that.
What we do control are our approaches and responses to what unfolds within the market. Whether bullish or bearish, we must have a predefined course of action and strategy. I like to buy deep corrections and skim on unexpected pumps. Investors should avoid panic decisions. This is most easily achieved by deciding now how you are going to respond to possible scenarios playing out.

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Final Thoughts
Fear-based decisions are usually counterproductive and even destructive. Disciplined approaches are often the most effective and an approach cannot be disciplined unless it is predetermined. That’s important to remember. A disciplined investor is referring to his playbook in times of trouble and chooses not to make a rash decision. Hopefully, we get out of this alive 😉 See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.