The upcoming U.S. presidential election will not hinder Bitcoin’s rally in the fourth quarter, according to a hedge fund manager. Neither party has offered an adequate solution to the country’s growing debt and deficit, which will benefit the leading cryptocurrency after the election.
Bitcoin’s price will gain from the upcoming U.S. presidential election, regardless of who wins. This view was expressed by CK Zheng, Chief Investment Officer of cryptocurrency hedge fund ZX Squared Capital.
Zheng pointed out that Bitcoin’s halving in April will lead to a strong fourth quarter. Moreover, both U.S. presidential candidates have failed to adequately address a key issue, which could play in Bitcoin’s favor.
“Since neither Republicans nor Democrats are offering an adequate solution to the ever-increasing U.S. debt and deficit during this election campaign, this will be extremely favorable for Bitcoin, especially after the election,” Zheng emphasized.
Bitcoin has historically benefited from uncertainty surrounding previous U.S. presidential elections, even before the winning party was announced. According to Zheng, this time will be no different.
CoinGlass data shows that Bitcoin has historically surged in the fourth quarter, posting over 50% growth six times since 2013. Years with Bitcoin halvings have often amplified this growth.
Bitcoin’s monthly returns. Source: CoinGlass
After the previous halving in May 2020, Bitcoin surged by 168% in the fourth quarter, which also coincided with the most recent U.S. presidential election year.
Zheng expects Bitcoin to reach a new all-time high in the fourth quarter or shortly thereafter.
He also mentioned that an “aggressive” 50-basis-point rate cut by the Federal Reserve would be a “bullish” signal for Bitcoin and other risky assets, assuming the U.S. economy achieves a “soft landing.”
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