Source: cardanofeed.com
The U.S. presidential election is less than three weeks away. Traders are preparing for what will happen after November 5. They are considering how a new government will react to issues affecting financial markets. This includes cryptocurrency.
Over the last week, cryptocurrency has been on a climb. Several factors have contributed to this trend, including Chinese stimulus, rate reductions by Western central banks, and the increased focus on the US elections.
(Source: Coinglass)
Effects of the US Election on Crypto
Data from Bitwise Asset Management’s ETC Group showed the volatility of token prices based on election outcomes.
According to the ETC Group, depending on the election, bitcoin might move up to 10% in either direction. With the spot price currently just below $68,000, a 10% increase would set a record high and surpass the $73,697 mark set in March.
(Source: Optimisticallie, YCharts)
The team also discovered that, with 18% and 20% moves, respectively, Cardano {{ADA}} and Dogecoin {{the election would most affect DOGE}}. According to Coinglass’s historical data, which covers the period from 2013 to 2023, Bitcoin’s performance in late October usually outperforms its early-month returns, frequently twice the average returns.
Recognizing the Expected Price Changes
Dogecoin and Cardano’s predicted price fluctuations stem from the special effects that significant political events, like the US presidential election, can have on the cryptocurrency market. As investors respond to expected changes in regulation, economic policy, and market sentiment, political unpredictability and the possibility of major policy changes can raise market volatility.
Dogecoin (DOGE) price predictions
Originally developed as a meme cryptocurrency, Dogecoin has grown into a well-known digital asset with a sizable community. There are several reasons for the predicted 20% change in Dogecoin’s price before the US election:
Market Attitude: Political developments frequently affect market attitude, which raises the level of speculative trading
Media Coverage: well-known sponsorships and media coverage may influence price changes.
Advancements in Technology: Any modifications or enhancements to Dogecoin’s infrastructure could affect investor trust.
Cardano (ADA) Price Estimates
The price of Cardano, which is well-known for emphasizing sustainability, scalability, and security, is also anticipated to fluctuate by 18%. Among the elements influencing this prediction are:
Improvements in technology: Cardano’s platform is constantly evolving, including smart contract abilities, which can impact its market performance.
Rates of Adoption: The requirement for ADA may rise because of increased adoption by organizations and developers.
The regulatory environment: Regulation changes pertaining to cryptocurrencies could impact Cardano’s usability and appeal to investors.
