Singapore, Singapore, September 18th, 2024, FinanceWire
FBS, a leading global broker, presents an overview of financial market trends in the context of the 2024 US presidential elections. FBS financial market analysts particularly underscore the rising investment potential of Bitcoin in the context of Harris-Trump uncertainty .
FBS analysts highlight that financial markets are experiencing turbulent times and investors are looking for safe-haven assets like gold and government bonds. According to the FBS experts, cryptocurrencies, particularly Bitcoin, become more appealing. FBS financial market analysts have explored Bitcoin’s historical performance during past US elections and speculated on its potential role in 2024.
In previous election cycles, Bitcoin’s price reactions to political events have varied:
- In 2012, during Barack Obama’s re-election, Bitcoin had little market impact due to its developing status.
- By 2016, following Donald Trump’s victory, Bitcoin gained institutional recognition, with its price rising as a hedge against economic uncertainty.
- In 2020, amid the COVID-19 pandemic, Bitcoin surged after Joe Biden’s election, driven by inflation fears and institutional adoption.
For the 2024 election, Bitcoin’s potential as a safe haven is under debate. While its correlation with traditional risk assets has weakened, its volatility remains high. With market capitalization reaching $600 billion in 2024 and daily trading volumes up 25% year-on-year, institutional investors increasingly view Bitcoin as a hedge against geopolitical risks and inflation.
FBS analysts warn that the 2024 US presidential election could significantly influence Bitcoin’s future:
- A victory for Kamala Harris may bring balanced regulation that fosters innovation but could also raise compliance costs for US-based exchanges.
- Donald Trump’s platform includes encouraging Bitcoin mining and lowering capital gains taxes, which could increase demand for cryptocurrencies.
Regardless of the 2024 US presidential election outcome, FBS analysts recommend a cautious yet strategic approach to trading. Monitoring political developments closely is critical, as shifts in policies or candidate standings can create significant price swings. Traders are encouraged to consider short-term opportunities in cryptocurrency markets, particularly Bitcoin, which has shown resilience and growth potential during past election cycles. Employing risk management tools, such as stop-loss orders, is also vital to mitigating downside risk during this unpredictable period.
FBS analysts believe Bitcoin’s long-term position in the financial markets is solidified. Growing institutional interest points to its potential as a legitimate hedge against macroeconomic risks.
Disclaimer: This material does not constitute a call to trade, trading advice, or recommendation and is intended for informational purposes only.
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