If history is any indicator, election season tends to be kind to Crypto.
So, what does that mean for you?
Let’s dive into it.
Presidential Elections and Crypto
Over the past few election cycles, we’ve seen a remarkable pattern—regardless of which political party takes office, Bitcoin tends to rally. Here's a quick look at what happened during the last few elections:
- 2016 Election: As the U.S. braced for political change, Bitcoin surged both before and after the election, with a notable rise after Trump’s victory. Investors flocked to BTC, seeking a hedge against potential economic uncertainty. The result? Bitcoin’s price took off.
- 2020 Election: Despite the uncertainty of a global pandemic and a highly divisive election, Bitcoin broke past all-time highs in the months following the election. As the dust settled, investors increasingly saw Bitcoin as a “safe haven” asset, fueling a historic bull run.
Key takeaway?
The political party doesn’t seem to matter when it comes to Bitcoin’s price trajectory.
Historically, Bitcoin continues to gain momentum around election time, and the upcoming 2024 elections are shaping up to follow the same trend.
Timing is Everything
With election season fueling the potential for another Bitcoin rally, now is the perfect time to make sure you’re ready to capture gains. It’s tempting to ride the wave indefinitely, but having a strategic exit plan can make the difference between maximizing profits and missing the peak.
Here’s why having an exit plan is crucial:
- Lock In Your Profits: Price surges around election time can be thrilling, but they don’t last forever. An exit plan allows you to lock in gains when the market is hot.
- Reduce Emotional Decision-Making: The election hype can drive the market up—and down—in a matter of hours. When you have a pre-determined exit strategy, you’re less likely to get swept up in the moment and make impulsive decisions.
- Prepare for Post-Election Volatility: While history shows us that BTC tends to rally after elections, volatility is always a factor. Having an exit plan ensures you’re prepared for any price movements, no matter the outcome of the election.
What to Watch for in 2024
With the upcoming election, there’s already a buzz in the market about potential regulatory shifts, economic policy changes, and what all this could mean for digital assets.
While no one can predict the future, history has shown us that Bitcoin tends to fare well in the face of political shifts. So, as 2024 unfolds, keep an eye on these key factors:
- Market Sentiment: How the market reacts in the immediate aftermath of election results can set the stage for BTC’s trajectory.
- Regulatory Outlook: Both parties are hinting at policies that could impact crypto regulation. Keep an ear out for any major policy announcements that might affect market sentiment.
- Institutional Moves: With more institutional players in the space than ever, pay attention to their strategies post-election. Big moves from Wall Street could further boost Bitcoin’s rally.
Make Sure You’re Prepared with Merlin
At Merlin, we’re committed to being the smartest way to track your crypto. With tools to monitor price trends, track market news, and set your own personalized exit strategy, Merlin has you covered for all your election season needs.
Try Merlin for free today and make sure you’re ready to navigate the post-election crypto landscape with confidence.