Bitcoin has a certain pattern around U.S. election cycles, dipping briefly and then rallying strongly post-election. In 2016, 2020, and 2024, BTC dropped by 10.2%, 6.1%, and 6.3%, respectively, before recovering. Will tomorrow’s election bring about a similar BTC rebound?
Post-Election Pattern: BTC Dips, Then Rallies Strongly Each Cycle
Bitcoin has followed a historically consistent price pattern in the lead-up to U.S. elections, dipping briefly and then rallying hard.
In 2016, BTC dropped by 10.2%, in 2020 it fell by 6.1%, and this year saw a 6.3% decline. The pattern shows that elections can temporarily send the market crabbing, but good old Bitcoin always comes back, increasing the hope of patient investors in periods like this.
The recent data proposes that selling BTC on election-induced dips could be a bet too soon, as prior cycles show BTC to recover and rally post-cycles. This behavior mirrors the general cryptocurrency market behavior of reacting to macroeconomic and political events by seeing the short-term dip and then the tokens rally back to life.
These trends help investors build a sense of how BTC will stabilize and grow and that temporary sell-offs present buying opportunities. Knowing this makes holders aware of post-election rallies, a strategy to either hold or react to short-term price movements.
Bitcoin ETFs Surpass 1M BTC Holdings, Fueling Market Optimism
The Bitcoin ETFs have reached a landmark relative to a vast cryptocurrency space, reaching $70 billion in total value locked holding over 1 million BTC. Less than a year after launch, this rapid accumulation is a testament to the growing institutional and retail demand for Bitcoin ETFs and the growing desire to see Bitcoin as a more formalized investment vehicle.
As more traditional investors’ capital moves into ETFs, it is assuring the market and legitimacy of Bitcoin as it maintains its position. The consistent inflow into Bitcoin ETFs is a market driver and price support. The fact that Bitcoin has become such a strongly integrated part of mainstream finance rewards this with more mainstream interest and investor access to regulated products.
ETFs are driving the price of Bitcoin, supporting higher prices by locking up a large amount of Bitcoin, which reduces circulating supply. The influx of capital into Bitcoin ETFs simply represents a further push toward BTC’s institutional adoption.
Analysts Say BTC’s Path Hinges on Fib 0.786 Support Amid Breakout Signals
KyleDoops, a crypto analyst, suggests that 0.786 is a critical Fibonacci retracement level for Bitcoin at the moment. This level is typically a turning point, which could form a spot for Bitcoin to consolidate before the next leg of an ascending price slope.
Kyle noted that this level aligns with Bitcoin’s historical election cycle patterns, meaning that being above this level should be considered bullish, should Bitcoin hold.
Kyle then points out that a confirmed breakout from the low time frame downtrend would present a safer entry point for conservative traders. Bitcoin is set near a breakout with the Fibonacci line as a springboard for future rally. With BTC above this support, it could be a long-term accumulation or trading support point.
93% of Bitcoin Holders in Profit as U.S. Elections Add Market Buzz
According to IntoTheBlock’s data, 93.32% of BTC addresses are In the Money holding BTC below the current price of $69,126.84. Strong market confidence is seen in this considerable portion of profitable addresses, in which most BTC holders are sitting in very favorable financial positions, giving the asset value as a store of wealth.
Only 2.46% BTC addresses are Out of the Money, or holding Bitcoin at a higher cost than the current price. The data underscores a robust support base and helps alleviate the fear of widespread selling pressure.
The low percentage of addresses at a loss further illustrates BTC’s ability to keep investor confidence, despite price fluctuations.
