Reported by CoinWorld:
BTC’s 8% election pump outperforms the US stock market
Despite post-election optimism, whale entities continue to reduce exposure
Bitcoin [BTC]
On the night of the US election, the price of Coinbase stock surged nearly 8%, reaching an all-time high of $75.410.
Although there was a slight profit-taking at the time of writing, BTC remains slightly below the record level, valued at $73.8K
Despite all markets rallying under Trump’s apparent leadership, the “Trump trade” seems to perform better in Bitcoin than in the US stock market.
Over the past five trading days, Bitcoin has risen 6% compared to the S&P 500 Index; the 500 Index (SPX) and the tech-heavy Nasdaq Index only surged 1%
From a year-to-date perspective, BTC’s gains have expanded to 67%, nearly 45% higher than SPX’s 22%. In short, BTC’s performance is three times that of the US stock market
BTC outlook post-election
According to BTC’s historical performance after US elections, this cryptocurrency might continue to maintain its outstanding upward trend
According to BTC analyst Stockmoney Lizards, the recent surge might be the starting point of a rebound towards the $100,000 target. He said;
“#Bitcoin. Remember, this is just the beginning. We can expect some volatility today and tomorrow. The next few weeks will be overwhelmingly green.”
However, CryptoQuant founder Ki Young-Ju warned that the market should not overly lower expectations for BTC returns. He expects BTC to pump at most 30% to 40% (around $96K to $103K)
He pointed out that long-term holders (LTH) holding stocks in a bear market might start selling and accounting for profits. Additionally, Young Ju said;
“It might rise 30-40% from here, but it won’t rise 368% like we saw from $16,000. It’s time to consider gradually selling out, not buying in full, IMO.”
Interestingly, Young Ju’s outlook seems to be underway, as the number of whale entities holding over 1K BTC is declining
According to Glassnode data, whale entities holding over 1K BTC decreased from 1,690 in mid-October to 1,658 on November 5th. This indicates that some large participants have reduced BTC exposure over the past two weeks
Read Bitcoin [BTC] Price Prediction 2024–2025
It remains unclear whether this is pre-election de-risking or a long-term profit-taking trend as BTC prints new ATHs
Read Bitcoin [BTC] Price Prediction 2024–2025
In summary, analysts’ assessment of BTC’s long-term outlook is positive. During this cycle, BTC might reach the $90K to $100K range.
However, whale entities have already started reducing risk exposure, and the CryptoQuant founder believes this trend might intensify in the future