US Election Sparks Divided Market Sentiment: Bullish or Bearish For Bitcoin, Ether, XRP, Cardano, Shiba Inu?

The cryptocurrency market is reacting to the upcoming US Presidential election after more than $288M was liquidated within 24 hours per Coinglass. Out of these liquidations, $142M were long, while $86M were short.

The liquidations were driven by price swings, with both Bitcoin (BTC) and Ethereum (ETH) showing signs of consolidation after trading lower over the weekend.

The spike in liquidations comes as the market braces for a volatile week as the US polls open. A Polymarket poll predicting the winner of the US Presidential election has amassed more than $3 billion in volumes, with former US President Donald Trump taking the lead with 58% of bets in his favor.

A Trump win is expected to stir a rally in crypto prices due to his favorable stance on the market during the campaign period. However, Vice President Kamala Harris’s campaign team has also made pro-crypto remarks.

With crypto forming a significant part of the issues discussed during the campaign period, analysts are now speculating on the impact a Trump win or a Harris win will have on prices.

Bernstein says Harris’s win will plunge BTC to $50,000

Analysts from the research firm Bernstein have predicted that Bitcoin could reach $200,000 by the end of 2025, regardless of who wins the US Presidential election.

However, they noted that if Trump wins the election, BTC will likely soar to between $80,000 and $90,000 in the days leading up to the inauguration. Conversely, if Harris wins the election, BTC could plunge to $50,000 before recovering.

Trump has made many promises to the crypto community, including plans to support Bitcoin mining and create favorable crypto regulations. As such, his win is seen as a win for the crypto sector.

Crypto market performance after US elections

Conversely, some analysts speculate that the crypto market will continue to rally after the US elections.

The electioneering period is a macroeconomic event that tends to impact financial markets. While volatility is common in the days leading up to the elections, past trends suggest that prices tend to rally.

For instance, after the November 2020 election, BTC gained from around $18,000 to $41,000 within two months. If these past trends continue, BTC is likely to surge to all-time highs.

Bitcoin traded at $68,346 at press time after a 1.03% gain in 24 hours.