Bitcoin Could Stay Rangebound Until November's US Election: Head of Research at Galaxy Digital

On 3 September, Alex Thorn, head of research at crypto asset management firm Galaxy Digital, said, ‘Most of the bitcoin retained by the US government was seized from thefts and will likely be returned rather than sold, the German government has already completed its sale, and we believe that the bitcoin from Mt. Gox has been largely distributed, as well as all the insolvent firms have returned usable tokens back to creditors,’ Thorn said. ‘From a supply perspective, the outlook for bitcoin is bright, and the distribution of cryptocurrency from FTX could be a positive catalyst for the repayment exercise, which we expect to commence within the next six months,’ Thorn added.

Thorn added, ‘FTX's cryptocurrency distribution will provide a significant amount of cash to a creditor base of known crypto investors who may consider reinvesting in the sector.’

According to Thorn's analysis, Bitcoin is likely to remain range-bound until November, as the US presidential election has a huge impact on investors. He said that Trump's victory could be a positive catalyst, while any negative impact from Harris' win is likely to be negligible. ‘I expect the market to be volatile until we know more about the rate cut expectations and the US election.’