According to CK Zheng, chief investment officer of ZX Squared Capital, Bitcoin price could be positively affected by the upcoming US presidential elections, regardless of who the winning candidate is.

“The failure of both parties to properly address the ever-increasing US debt and budget deficits in this election will be very positive for Bitcoin, especially in the post-election period,” Zheng said, arguing that this situation could lead to an increase in crypto markets.

Zheng also predicts that the Bitcoin halving, which will take place in April 2024, will increase the Bitcoin price in the fourth quarter. Halving means that miners’ rewards are halved, which usually leads to an increase in demand and prices as it limits the supply of Bitcoin.

According to historical data, Bitcoin’s price has often made big jumps during halving periods. For example, after the last halving in 2020, Bitcoin experienced a 168% increase in the fourth quarter. That year, there was also a presidential election in the USA and cryptocurrency markets gained great momentum.

Zheng thinks a similar scenario will occur in 2024 and states that Bitcoin could reach a new all-time high in the fourth quarter or immediately thereafter.

The increased interest in cryptocurrency markets in such periods usually brings with it media attention. Samantha Yap, CEO and founder of Web3 PR firm YAP, states that such rallies have become important with the interest of retail investors in cryptocurrency markets rather than price increases.

“During Bitcoin rallies, media attention often follows retail interest, which sets off a media frenzy,” Yap says, emphasizing that what really matters is that usable and accessible applications are readily available in the cryptocurrency and Web3 ecosystem. In this way, new users can adapt to these technologies more easily.

Zheng thinks that in addition to Bitcoin, the interest policy of the US Federal Reserve will also play an important role. An aggressive cut in interest rates by the Federal Reserve to control inflation could have a positive impact on Bitcoin and other risky assets.

Especially if the US economy can rein in inflation and make a “soft landing” without experiencing a recession, Zheng predicts that Bitcoin’s price will show a high correlation with the NASDAQ index. According to Zheng, “Liquidity is gradually returning to the market, which may lead to stronger price movements in the coming months.”

The fact that Bitcoin is seen as an assurance against macroeconomic conditions also attracts the attention of the markets. The “digital gold” narrative of cryptocurrency may lead to more institutional capital turning to Bitcoin, especially during periods when traditional markets are volatile.

Leo Fan, one of the founders of Cysic, which works on zero-knowledge proof technology, supports this situation and states that Bitcoin’s price movements may be stronger in the coming period and the interest of institutional investors in Bitcoin will increase.

According to the latest data, Bitcoin is currently trading at $64,400 and is down 2% in the last 24 hours. However, this decrease is thought to be temporary within the general upward trend.