BTC prices have continued their struggles from June, seeing prices dip below $60,000 at the start of July, although the price did recover soon after. Analysts are predicting that new highs are likely sometime in August. They go on to say that the cryptocurrency’s price has the potential to go as high as $100,000 by the time of the U.S. elections in November, as long as Joe Biden remains in the race. Following a reversal of his opinion on Bitcoin, Donald Trump is seen as being pro-Bitcoin, which could impact prices further depending on the outcome of the race.
Looking Forward
Despite June’s slump, there is a lot for the market to look forward to, including new coin launches in learn-to-earn, play-to-earn, and the meme coin sectors. This crypto presales list shows some of the pending projects, with some of those coins having already racked up millions from investments. Crypto author Medb points to the likes of Pepe Unchained and Wiener AI as having potential for the year ahead.
June Price Drops
However, Bitcoin itself, the crypto that started it all, saw a lackluster performance in June, with prices dropping 7%. The slump was attributed to the U.S. and German governments moving seized Bitcoins to major crypto exchanges, ready for sale, as well as the Mt. Gox trustees’ announcement that they would begin sending out Bitcoin payments to creditors from the first week of July.
In the past, this kind of news would have sent Bitcoin prices plummeting further, but the introduction of Bitcoin spot ETFs and the subsequent influx of major investments from institutional investors over the years has seen the market mature considerably. Investors can now seemingly take bad news in their stride without previously seen levels of panic selling seen during past crashes. However, the price did still drop, and this fall came at a time when demand for Tether also saw a drop so all was not rosy in the markets.
July A Historically Strong Month
Another cause of potential cheer for Bitcoin investors is the fact that, historically, June has often been a bad month. However, every time June ended with losses for BTC, July typically went on to see some decent growth again. On average, July had posted gains of over 7% following poor performances by BTC in June.
Overall, July is usually a positive month for the world’s leading cryptocurrency, and where Bitcoin goes, altcoins have the opportunity to follow. In particular, analysts believe gains are likely for Ethereum, much of that sentiment tied to when Ether’s spot ETFs are launched.
The Election and its Effect On Bitcoin Prices
Some commentators are pointing to the U.S. election, set for November, as being a potential catalyst for the market. As it stands, current President Joe Biden and former President Donald Trump are still the only likely candidates. However, presidential candidates must be registered by August 4, in Ohio, so if Biden is still the nominee for the Democrats by then, that won’t change.
Biden On Bitcoin
According to experts, if Biden doesn’t drop out, it will be good news for Bitcoin. Biden is outspoken regarding his anti-Bitcoin stance. His team has proposed considerable taxes on miners and other companies involved in Bitcoin and he has been accused of trying to kill the crypto industry as a whole.
Trump On Bitcoin
It should be kept in mind that one of the people leveling those accusations at the President is Donald Trump himself. The presidential hopeful once described Bitcoin as a scam against the U.S. dollar and stated that the dollar would always be the only American currency.
However, his stance has not only softened in recent months, but he has seemingly had a complete change of heart. In June, he said that he wants all Bitcoin that has yet to be mined, to be mined in the U.S. and urged cryptocurrency fans to vote for him and not for “Bitcoin-killer” Biden.
As a result of his changing stance, many leading names in cryptocurrency have thrown their weight, and their money, behind the former President. The Winklevoss twins donated a million dollars each, and so too have others. Although there is no guarantee that Trump won’t change his stance again, some experts claim that there has been a link between Bitcoin prices and Trump’s lead over Biden in the presidential race.
The Importance Of August 4
In light of all the election drama, August 4 could be a significant date for Bitcoin, as well as the election. If a significant replacement for Biden is put forward by the Democrats, it could see Trump replaced as the favorite and, depending on his opponent’s view of cryptocurrency, it could lead to bearish sentiment in the market.
All-Time Highs
That Trump is currently the favorite to beat out Joe Biden spells good news for Bitcoin prices, and has led to predictions of new all-time highs by the end of August and a price of $100,000 by the end of the year.
Bitcoin achieved its current all-time high in March when the launch of ETFs helped push the price up to nearly $74,000. However, it struggled to maintain this peak and fell back below $70,000. It has made several attempts at the renewed $70,000 resistance level in the proceeding months but has not made any of those attempts stick, as yet.
Post-Halving Price Boom
Another reason for positivity regarding Bitcoin prices in the coming months is the halving event that occurred earlier this year. Halving events happen every four years and they see the amount of Bitcoin available to mine halved. This helps slow the production of the digital currency. It also makes mining less profitable, and historically, has led to substantial price increases around 12 months after the event. However, this was only the third halving event, and because of that historical trend, any expected increases may have now been built into the current prices. With cryptocurrencies becoming more widespread as payment methods in everything from crypto gambling to the fast food industry, many investors are optimistic that good times may be ahead. The only thing certain at this point is that only time will tell!