The Impact of US Presidential Elections On Bitcoin Prices

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Before the US presidential elections Jeff Dorman, a chief investment officer at cryptocurrency hedge fund Arca, implied that even though a number of data sites and traders assume some noteworthy cryptocurrency price instabilities during and after the US presidential elections. Bitcoin and several other cryptocurrency are assumed to be independent on the result of the 2020 US presidential elections. He implied that cryptocurrencies will just shake off the market ambiguity irrespective of the much awaited outcome. He noted that even though a bulk of business analysts presume a tight presidential election, where no one has a clear lead and advantage, it would not be significant on whoever triumphs since all cryptocurrency assets will get a massive growth.

 

But now, uncertainty has come to a culmination. Joe Biden has formally began the transition process in preparation for his January 20, 2021 inaugaration as the president of the United States. the General Service Administration has ascertained Biden, together with Kamala Harris, as the victors of the 2020 race.  In early November, Biden was declared victorious of the presidency after winning the crucial electoral votes from Pennsylvania and Georgia. The new president was swift to update his Twitter bio and send out a message addressed to the nation and his followers, acknowledging them for their provision, then encouraging all Americans to finally unite what evidently looks like nonUnited States of America.

 

Festivities spread in all places in the culmination of the presidential race. On the other hand, Donald Trump did not hand over and also asserted triumph in a tweet. He guaranteed that he shall contest the election results in court for being duplicitous.

 

Now that the presidential election will be inscribed in history books, experts and stockholders alike have been prudently studying how a Biden Presidency may influence bitcoin prices. Most of them are prodigiously positive about the Biden administration.

 

Back in June of 2019, President Donald Trump distressed the cryptocurrency community after he publicized on Twitter that he is not a fanatic of bitcoin and other cryptocurrencies, restating the identical old rhetoric that cryptocurrencies are primarily used for money laundering schemes and funding extremist and terrorist groups. It was later publicized that Trump had in fact tried to smother out bitcoin in the U.S.

 

In contrast, Joe Biden has not thought anything deleterious about cryptocurrencies up until today. Market specialists like Qiao Wang, consequently, consider that a Biden administration is better than the Trumps administration. In the intervening time, other associates of the cryptocurrency community put their trust behind Joe Biden. As a matter of fact, Sam BankmanFried, who is the Chief Executive Officer of FTX crypto exchange, provided over five million dollars to Joe Bidens race for presidency.

 

Stockholders like Galaxy Digitals Mike Novogratz further believed that bitcoin along with other cryptocurrencies will rise under the new presidents direction, quoting the continuing activities of the Fed saturating the market with money provoked by the COVID19 pandemic. The exceptional money printing unintentionally increases bitcoins case as a windbreak against inflation.

 

Nevertheless, contrary to what analysts have predicted that cryptocurrencies would not depend on the outcome of the election Bitcoin immediately felt what is dubbed as theBiden Effect”. The cryptocurrency lost a whopping $850 right after Bidens declaration, as a commonsell the newsresult. Bitcoin traders had a hard time as Bitcoin crashed within hours of the outcome.

 

The cryptocurrency merely dropped from over 15 thousand dollars to a low of over 14 thousand dollars. It later went back a little close to its original value but then fell again to 14 thousand later on the day. Diagrams with candles set to 1day appear to point to a strong improvement. Bitcoin has been in a healthy buoyant channel since March 2020, giving assurance in its appreciation without anxiety of a probable bubble but when it touched $16 thousand dollars, it not only broke that channel but carried other pointers into an overbought area with the imaginable risk of a further drop.

 

Although Bitcoin now resumed to the normal channel, and the candles recuperated a little. This could lead to a normalization of operations only for a short period of time. Nevertheless, it indicates a considerable risk for scalpers and Bitcoin traders with leveraged positions.

 

The big question is how will the new president impact the cryptocurrency markets? For now it is still premature to draw all pieces together on the whiteboard. Just before the now culminated presidential race, the universal belief was that a subsequent triumph for Donald Trump would mean a lift for cryptocurrency markets while on the other hand, Joe Biden’s presidency wouldn’t be very friendly for the stakeholders and the cryptocurrency market.

 

However, the nowdeclared president of the United States of America has pronounced his plans to issue another stimulus proposal, which could mean more market progression. Since Joe Biden was not able to make public his opinion on cryptocurrencies like Bitcoin, his key contributions on the cryptocurrency market will possibly arise from who he assigns to vital positions (SEC, OCC, CFTC).

 

After the US presidential election, the majority of analysts predicted a prolongation of price action that weve already witnessed this current year. If we needed to put a tag on it, wed possibly call it cautiously optimistic. This is particularly spoton if we gaze on the long term projection of cryptocurrencies. Months after the presidential election, there may possibly be a critical but never essential effect of the 2020 election.

 

Bitcoin established a great momentum even before, whether theres an election or not. The crypto trade will remain to make growth with mainstream stakeholders, buyers, and monitoring agencies whenever whose leadership is at the helm of the nation. Development could mean just a stable or even unpredictable soar in the short term, but a general sustained rise in the long period of time.

 

There is an optimistic motion in bitcoins curve for the value to upsurge even further. More conventional adoption is sufficient for that. Its also recognized that the market is stirring onward notwithstanding of who the US president is. With all things wellthoughtout, this is undoubtedly beneficial for bitcoin and cryptocurrencies as a whole.

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