Bitcoin’s price momentum slowed down as it hit resistance at $64,000, with traders cautiously eyeing the upcoming U.S. presidential election. As inflation reports loom and the election date approaches, market participants seem to be holding their breath, waiting for a clear direction. Could these factors push Bitcoin to new highs, or will uncertainty weigh on its price? Let’s take a closer look.

Bitcoin’s Price Meets Resistance

In early European trading hours today, Bitcoin’s price surged close to $64,000 but encountered resistance, causing the price to settle around $62,800, marking a 1.5% increase for the day, according to Coin Gecko data. Ethereum, the second-largest cryptocurrency, mirrored Bitcoin’s movement, rising 1.3% to $2,450.

While Bitcoin has made gains over the past few days, the resistance at $64,000 signals a hesitation in the market, which could be influenced by upcoming economic and political events.

The Impact of U.S. Presidential Election

The upcoming U.S. presidential election is a significant factor contributing to market uncertainty. With just a month to go before voters decide between Republican candidate Donald Trump and Democratic candidate Kamala Harris, the crypto market seems to be in a wait-and-see mode.

Analysts, like Jon Reader, Chief Investment Officer at crypto lending protocol Ledn, believe the election will have a substantial impact on Bitcoin’s next price move. In a note shared with Decrypt, Reader stated, “It seems that the market is waiting for the November elections before committing to a clear direction in price.”

Reader pointed out that a Republican victory would likely be more supportive of digital asset prices, but both parties have been showing a more favorable stance towards cryptocurrencies in general. This has led many experts to predict that Bitcoin’s upward trend will persist regardless of the election outcome.

Could the Election Bring a New Bitcoin High?

While the political landscape plays a role, Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, believes that the crypto market will benefit, no matter who wins. According to Kendrick, Bitcoin could hit a new all-time high this year, with both Donald Trump and Kamala Harris poised to create a favorable environment for digital assets.

Interestingly, bettors on the crypto prediction site Polymarket currently favor Kamala Harris to win the presidency, with 51% predicting a Democratic victory. However, these results are skewed as the site does not allow U.S. residents to place bets. This means Polymarket may reflect international sentiment more than domestic opinion.

At the time of writing, Polymarket users have wagered a staggering $1.4 billion on the outcome of the election, further highlighting the significance of this event for traders and investors worldwide.

Inflation Reports as a Key Catalyst

Beyond the political arena, analysts are also keeping an eye on upcoming inflation reports as a potential catalyst for Bitcoin’s next major price movement. Inflation data has been a key driver of Bitcoin’s price in recent months, with traders viewing the cryptocurrency as a hedge against inflationary pressures.

The latest U.S. unemployment numbers from last week were received positively by traders, which helped Bitcoin gain approximately 5% over the weekend. However, despite the weekend rally, the BTC price is now meeting some resistance. Many believe that the next inflation report could either break Bitcoin past the $64,000 level or push it back down.

Market Sentiment and Bitcoin’s Future Direction

While resistance at $64,000 has slowed Bitcoin’s upward movement, the overall sentiment in the market remains cautiously optimistic. With a mix of political uncertainty, inflation data, and Bitcoin’s long-term potential, traders are positioning themselves carefully, waiting for a clearer signal.

Analysts like Kendrick and Reader believe that while short-term volatility is possible, the general outlook for Bitcoin is positive. Should the election bring more clarity, and should inflation data favor Bitcoin’s narrative as a hedge, we could see the cryptocurrency break through current resistance levels and continue its upward trend.

Conclusion

As Bitcoin continues to face resistance around the $64,000 mark, traders are looking ahead to key upcoming events such as the U.S. presidential election and inflation reports. While uncertainty is high, many analysts believe the outcome of these events could push Bitcoin to new highs. Whether it’s a Republican or Democratic victory, the crypto market seems poised for growth in the months ahead, provided that inflationary pressures and other economic factors align in Bitcoin’s favor.