On October 31, the price of Bitcoin remained volatile at a high range of $72,000 to $73,000, currently reported at $72,334, just shy of the all-time high set in March. The market generally expects the upcoming US presidential election to boost Bitcoin, with Geoff Kendrick, an analyst at Standard Chartered Bank, even predicting that Bitcoin might break its all-time high on election day. However, whether Bitcoin will face a "buy the rumor, sell the news" risk post-election has become a focal point for investors.
The "buy the rumor, sell the news" phenomenon is quite common in the market: when a positive factor materializes, its beneficial impact is fully absorbed by the market, and investors may withdraw profits, leading to a price correction. Therefore, a brief pullback of Bitcoin post-election cannot be ruled out. Particularly, as the election results are about to be announced, investor sentiment is gradually rising, increasing short-term volatility.
Despite the possibility of a pullback, institutions remain optimistic about Bitcoin's medium to long-term trend. As uncertainty around the direction of US policies increases, demand rises for Bitcoin as an inflation hedge and safe-haven asset, with its long-term value expected to remain supported. Analysts from Standard Chartered Bank point out that if the US election results further boost market confidence, Bitcoin is likely to break through the all-time high and maintain its strength.
The Bitcoin market is currently at a critical juncture, and post-election trends will depend on whether the confidence boost from the election can be sustained. Analysts advise investors to monitor Bitcoin's breakthrough opportunities while being wary of the potential short-term pullback risk triggered by the "buy the rumor, sell the news" effect. Regardless of short-term volatility, institutions remain bullish on Bitcoin's long-term prospects, and this market trend may more prominently display its safe-haven characteristics as global economic uncertainty intensifies.
