Galaxy Digital: BTC may be in a range-bound state until November as the US presidential election has a huge impact on investors
Alex Thorn, head of research at crypto asset management firm Galaxy Digital, said that in addition to the early declines, another reason why August was such a tough month was the oversupply of bitcoin, although those oversupply issues are now said to have largely subsided or been resolved. ‘Most of the bitcoins retained by the U.S. government were seized from thefts and are likely to be returned rather than sold, the German government has completed its sale, and with what we believe to be the bitcoin legacy from Mt. Gox largely distributed, as well as all the insolvent firms having returned usable tokens to their creditors, the outlook for bitcoin is bright from a supply standpoint The future of Bitcoin is bright from a supply perspective. The distribution of the estate of defunct exchange FTX could be a positive catalyst, and we expect that repayment action to kick in within the next six months.’
Thorn added, ‘The distribution will provide a significant amount of cash to a creditor base of known crypto investors who may consider reinvesting in the industry.’ According to Thorn, Bitcoin is likely to remain range-bound until November, as the US presidential election has a huge impact on investors. He said a Trump victory could be a positive catalyst, while any negative impact from a Harris win could be negligible. ‘I expect the market to be volatile until we know more about rate cut expectations and the election.’
Alex Thorn believes that only unforeseen events will really affect the short-term price of Bitcoin at this point.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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