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With just 16 days remaining until the U.S. election, bitcoin is now sitting at its highest price since the end of July. Many speculators are confident that a Trump victory would send bitcoin climbing to new peaks, a theory gaining traction among major financial institutions. While some believe the election results won’t significantly impact bitcoin’s value, a Trump win could still lead to what traders call the ‘God candle’—potentially the largest daily price spike in history.
Will a Trump Win Ignite Bitcoin’s Next God Candle?
Bitcoin is enjoying a pre-election rally, with many anticipating BTC to experience some wild swings amid the upcoming decision. The 2020 U.S. election brought a long and controversial wait, and this time could be just as drawn-out and perplexing. Crypto enthusiasts on social media have been buzzing about a Trump victory potentially boosting BTC prices.
This sentiment stems from Trump’s recent change of tune and his pledge to make crypto thrive in America, along with promises like a commutation for Ross Ulbricht, the creator of the Silk Road. On the flip side, skepticism surrounds Harris due to her role as Vice President under Biden. Over the past few years, the Biden administration hasn’t been kind to crypto, and many assume Harris would continue down that path if elected.
Harris’s supporters, however, believe she could usher in a new approach, as she’s made several commitments to be more crypto-friendly. But it’s not just Twitter voices predicting a Trump-driven bitcoin boost. Last month, Standard and Chartered projected that a Trump win could propel BTC to $125,000, whereas a Harris win might land it closer to $75,000. Bernstein, a well-known brokerage and research firm, also weighed in.
In September, Bernstein suggested that a Trump victory could push BTC to $90K, while a Harris win might bring it down to $30K. With such high stakes and crypto playing a key role in the 2024 election, BTC might experience one of its most dramatic daily price swings yet. This could potentially lead to a “God candle,” a massive candlestick on the daily chart that dwarfs all surrounding price action.
If Trump wins, with confidence running high and financial institutions betting on his pro-crypto stance, a huge green God candle could emerge simply through the power of market sentiment. Bitcoin has seen some memorable daily candles over the years, and crypto publication Protos does an excellent job covering these significant moments.
The biggest God candle to date happened on April 10, 2013, when bitcoin’s price soared from just under $20 to $290—a staggering 115% rise in a single day. More recently, the most memorable surge occurred when Elon Musk’s Tesla invested in BTC, sparking a 22.4% jump on Feb. 8, 2021. A Trump victory might not hit the 2013 record, but it could land somewhere between the Tesla surge and that historic peak. A God candle signifies a strong, definitive move in one direction.
However, a Harris win could trigger a significant drop in BTC from the highs reached just 16 days prior. The value might climb higher leading up to the election, only to tumble if Harris takes the win. Of course, much of this is speculative, even when the projections come from financial heavyweights like Standard and Chartered or Bernstein. The election outcome could turn out to be a non-event for BTC, resulting in only modest price movements. Yet, with the prevailing sentiment, it seems more likely that volatility is brewing, perhaps leading to a God candle.
What do you think the election decision will bring to crypto markets? Do you expect it to be volatile or a nothing burger? Share your thoughts and opinions about this subject in the comments section below.