Bitcoin Is A 'Liquid Hedge' Donald Trump Winning The Election But Don't Count On $100,000 In 2024, Analyst Says

Pseudonymous analyst Lazy Villager analyzing Bitcoin’s BTC/USD recent price surge and its potential connection to the upcoming U.S. presidential election.

What Happened: Lazy Villager noted in a post on X on Wednesday that despite recent strong inflows into Bitcoin ETFs, the growth potential in the year’s final quarter may be capped.

The investor argued that the recent heavy inflows into Bitcoin are highly mercenary and that the conditions necessary for a blow-off top, similar to what was witnessed in 2021, are currently absent.

Lazy Villager pointed to factors holding Bitcoin back, including a lack of re-hypothecation, high confidence in rate cuts and the absence of robust government stimuli. This, coupled with softer reactions in equities and gold, may hinder Bitcoin’s price discovery in 2024.

He suggests Bitcoin is increasingly being viewed as a liquid hedge against a Trump re-election rather than being directly driven by the election itself. This view challenges the common narrative that a specific election outcome would directly benefit Bitcoin.

Also Read:  Bitcoin Spikes Above $68,000: These Macro Indicators Are Key To New All-Time Highs

Why It Matters: The analysis comes as Bitcoin tries to break its all-time high, briefly exceeding $73,000 during Tuesday’s U.S. daytime trading hours.

The crypto king’s rally also lifted other digital assets, with Solana SOL/USD and Dogecoin DOGE/USD recording double-digit percentage gains in October.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: 

• Bitcoin Looking At A ‘Very Bullish Setup’ Ahead Of US Election, Industry Expert Says

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