With the U.S. presidential election fast approaching, Bitcoin analysts are making bold price predictions based on the potential outcomes. The election race between former President Donald Trump and Vice President Kamala Harris is tight, and analysts see varying effects on Bitcoin’s price trajectory based on the election winner.
Bitcoin to reach $80,000-$90,000 if Trump wins
Analysts from Bernstein forecast that a Trump victory could push Bitcoin’s price to between $80,000 and $90,000. Trump has previously expressed support for Bitcoin and other cryptocurrencies, promoting the U.S. as a leader in the crypto industry. His proposals include appointing a pro-crypto SEC chair, establishing a national Bitcoin reserve, and making the U.S. a hub for Bitcoin mining.
This aligns with a historical trend in Bitcoin’s price, where it has surged following U.S. elections that coincide with Bitcoin’s four-year halving cycles. After previous halvings, Bitcoin reached significant highs, such as $1,150 in 2013, $20,000 in 2017, and $69,000 in 2021. With the latest halving in April 2024, the election could trigger another upward trend, according to Bernstein.
Bitcoin to $100,000 by November’s end?
November is historically Bitcoin’s most profitable month, with an average return of 46% since 2013. This month’s historical gains lead analyst Lark Davis to project a potential rally towards $104,000 if this trend continues. Despite election uncertainties, Davis believes Bitcoin could still reach this target in November. In October, Davis had predicted a longer-term target of $200,000 for Bitcoin by 2025, independent of election results.
Market analyst Miles Deutscher offers a contrasting prediction for a Harris victory, expecting an “instant dump” in Bitcoin’s price if she wins. Market fears center on the possibility that a Harris administration could enforce stricter regulations on cryptocurrencies, leading to short-term sell-offs. However, Deutscher also anticipates Bitcoin will eventually reach $100,000, regardless of the winner, though a Harris-led administration might slow the path due to potential regulatory pressures.
The U.S. Federal Reserve’s upcoming meeting on Nov. 7, where a potential 25-basis-point rate cut could be announced, may further impact Bitcoin’s performance. Analysts suggest this could enhance Bitcoin’s bullish potential, possibly aligning with Bernstein’s $80,000-$90,000 target.
As of Nov. 4, Bitcoin is trading at around $68,760, recovering slightly after a 7.35% drop from a recent high of $73,600. This price fluctuation aligns with a significant decrease in futures market interest, with a $1.1 billion drop liquidating $300 million in positions as traders reduce exposure ahead of the election.
Source: Cointelegraph
Ethereum ETFs on the rise as Michigan pension fund invests $10 million
Ethereum’s institutional adoption is gaining momentum, marked by Michigan’s State Pension Fund (SMRS) revealing a $10 million investment in Grayscale’s Ethereum ETF. This milestone makes Michigan the first U.S. pension fund to hold Ethereum, suggesting a growing trend in institutional interest beyond Bitcoin.
The SMRS’s investment positions it as a top-five institutional holder in Grayscale’s Ethereum ETF, with additional exposure through 460,000 shares in Grayscale’s Ethereum Mini Trust, bringing its total Ethereum holdings to $11 million. This move highlights the fund’s strategic diversification, as it holds more in Ethereum than in Bitcoin, with $7 million invested in Bitcoin ETFs. This shift reflects Ethereum’s appeal to institutional investors seeking broader crypto exposure.
Pension funds are increasingly exploring crypto assets, seeing them as a way to diversify portfolios with assets that may counterbalance traditional markets. Michigan’s investment in Ethereum follows earlier moves by pension funds such as Wisconsin’s State Investment Board, which has nearly $100 million in BlackRock’s Bitcoin ETFs, and Florida’s pension funds, which have allocated around $800 million toward crypto-related investments. These investments reflect a trend where pension funds are embracing digital assets, previously considered high-risk, as they seek alternative strategies to de-risk portfolios.
ETFs offer institutional investors a regulated and safer avenue into crypto markets, making them appealing for conservative funds like pension systems. The introduction of spot crypto ETFs has been highly anticipated, as these allow institutions to directly invest in crypto without holding the actual assets, thus mitigating potential risks related to storage and security. Institutional investments like those from Michigan’s pension fund can drive up liquidity and valuations in the crypto sector, which benefits from large-scale, stable inflows of capital.
The Michigan investment underscores the positive impact of recent regulatory approvals for crypto ETFs, enabling institutions to more confidently enter the crypto space. Ethereum’s potential for future institutional inflows mirrors Bitcoin’s journey, suggesting that as regulatory clarity improves, more pension funds and institutional players may follow suit. This shift could reshape the crypto market, enhancing its stability and integration into traditional financial systems.
In summary, Michigan’s pioneering move into Ethereum ETFs not only marks a significant development for crypto adoption among traditionally conservative investors but also hints at a future where crypto assets become a core part of institutional portfolios. This development signals the growing legitimacy of crypto assets, paving the way for increased institutional involvement in the crypto market.
Source: DailyCoin
Paxos unveils USDG stablecoin in partnership with Kraken, Robinhood, and leading crypto platforms
Paxos has unveiled a new stablecoin, the Global Dollar Network (USDG), developed in partnership with major cryptocurrency firms like Bullish, Kraken, and Robinhood. This initiative comes amid a surge in stablecoin releases in 2024, which has driven the total market cap of stablecoins to nearly $180 billion.
The launch of USDG, announced on November 5, is intended to promote global adoption of stablecoins, offering a stable digital asset backed by U.S. dollars. Major players, including Anchorage Digital, Galaxy Digital, Nuvei, and DBS Bank (Southeast Asia’s largest bank by assets), are involved, making USDG a collaborative effort among industry giants. DBS Bank will serve as the primary banking partner, managing USDG’s cash holdings and custody, while the asset will be backed by U.S. dollars, short-term Treasury bonds, and cash equivalents.
Initially, USDG will be issued on the Ethereum blockchain, though Paxos has plans to expand to other blockchains. The stablecoin will be regulated under Singapore’s upcoming stablecoin legislation, as Paxos intends to issue USDG from Singapore. By complying with these regulations, Paxos aims to provide a secure and trustworthy stablecoin option that appeals to both individual users and institutional investors.
A key feature of the Global Dollar Network is its commitment to returning nearly all reserve-related returns to participants, which contrasts with the current leading stablecoins that often retain a significant portion of these earnings. Paxos co-founder and CEO Charles Cascarilla emphasized that stablecoins are fundamentally transforming the financial system, offering new ways for people to interact with U.S. dollars and digital payments. He highlighted that while existing stablecoins are largely unregulated and retain reserve profits, USDG aims to distribute these benefits to its participants. Cascarilla sees this model as an incentive for widespread adoption of stablecoin technology.
Paxos’s vision for USDG is to create a stablecoin that aligns with societal demand for more inclusive and equitable financial solutions, aiming to drive mainstream adoption of digital currencies. With backing from several industry leaders and an emphasis on regulatory compliance and participant rewards, Paxos hopes USDG will stand out as a global standard for stablecoins. The launch of USDG is seen as part of a larger trend toward integrating stablecoins into everyday financial transactions, potentially replatforming traditional financial systems with blockchain technology.
Source: Beincrypto