Bitcoin Soars: $14K on Election Day

Bitcoin price increased higher than 2% within 2 hours to merely top $14,000 as the election polls were beginning to close throughout various US states on 3rd November.

Bitcoin Can Be The Next Election Winner

The United States of America is witnessing election day, today, and various cryptocurrency leaders are predicting that Bitcoin could turn out to be the next winner in a highly contentious race. Initially, officials have calculated more than 400000 ballots.

Being around only for two presidential elections in the USA, Bitcoin’s Price has increased notably with every successive race.

In November 2012, 1 Bitcoin was approximately valued at $12, whereas during 2016, the Bitcoin’s Price was higher than $700. With Bitcoin now touching the $14309 mark at the publication’s time, it represents an increase of 1900% within the four-year gap or approximately 140000% within eight years.

It refers to the second time Bitcoin has risen above the barrier of $14,000 within only a week with a notable mark that the daily candle has just closed beyond $14,000 for the first time since January 2018.

The increasing interest of institutions and the decision of PayPal to offer cryptocurrency services, along with other non-political factors might explain the rise of Bitcoin’s Price. On the other hand, social media engagement has additionally enhanced this month. As per the analytics, Bitcoin witnessed positive returns of 30% during October, when compared to 10% returns on Ethereum.

Also Read: Crypto Predictions 2023: Analysing Market Trends, Bitcoin and Upcoming Winners

Within the conventional market, European and Asian shares increased, and the stock futures of the United States pointed to a higher open. On the other hand, the yield on the 10-year-old treasuries of the United States rose to 0.03% point to 0.88%. Alternatively, the strength of gold increased from 0.2% to $1,899 an ounce.

Market moves

With the presidential election of the United States of America finally here, Donald Trump’s Republicans are convinced that the democratic Challenger Joe Biden will lead the United States of America down an irreversible path to disorder and socialism. It is because the Democrats are sure that another four years of Trump could signal very well the end of decency and democracy.

Similarly, various Crypto enthusiasts are simply putting their full faith in Bitcoin. Whether none of those might be justified or possibly all of it might be. Here are some of the Bitcoin-oriented talking points:

1. Impact of Election

The prices of Bitcoin merely reacted when Donald Trump defeated Hillary Clinton in 2016. The presidential election of The United States of America in 2016 barely budged the market of Bitcoin.

The action for the Price of Bitcoin for the whole month of November 2016 becomes entirely lost within the long-term chart. The month of November 2016 hardly looked significant in the context of the long-term bull run of Bitcoin.

Also Read: Bitcoin’s Bull Market Repeats History: Fuels Another Boom

2. The blue wave

Concerning which Joe Biden wins, and the Democrats take full control of the upper legislative chamber of the Senate of the United States. It could make it simple for the earlier vice president to implement the plan that incorporates spending much on climate change and social problems. This kind of fiscal stimulus might expand the already recorded federal budget deficits of the United States. It possibly would have to be backed up by the Federal Reserve with the help of money printing. On the other hand, BTC might profit from the US dollar’s ostensible weakening.

3. The red wave

The red wave where the US Congress is considered as the low probability event, and the Republicans hold the presidency, might lead to a fluctuation in stock prices with a risk on the environment when it comes to financial assets. The environment was pretty bullish for Bitcoin within the decade through 2019. Donald Trump has had massive tax cuts throughout the second term with massive stimulus. It would possibly signify the need to print huge amounts of new cash to finance it all.

Regardless of the outcome, in any scenario, Bitcoin is likely to prosper.

4. Surge in Future Contracts

The futures contracts of Crypto exchanges increased for the past week, However, indicating that Donald Trump is for a loss. Utility tokens were exchanging hands late Monday, and these additions will pay out if Donald Trump technically loses but remains the president after January 2021.

5. Local Important Elections Impact Crypto Industry

A Host of important local elections could shake up the landscape for the industry of cryptocurrency policy-making for ages to come.

A substantial section of the election handicapping within the conventional market concentrates on the possibility of steep volatility in the event. Therefore, there remains no clear election result potentially pointing to prolonged uncertainty or a constitutional crisis. It will make sense if the election results point to instability and turmoil within the United States. Therefore, for people to turn to cryptocurrencies or Bitcoin as they grow, ever wary of politicians and Central banks in general.

6. The crypto industry might Calm Down

If Joe Biden wins, the other couple of months might witness outsize uncertainty. As Republicans intend to avoid helping an incoming democratic system. The pandemic continues to spread, unemployment is elevated, and the economy is going through tectonic transformations with the transition towards remote working. All of these indicate that there is little possibility of calm coming back to Crypto markets or traditional financial markets, anytime soon.

Bitcoin watch

Both traditional market and Bitcoin investors appear to be forecasting a pickup in volatility. After Tuesday’s election in the United States.

The biggest one-month crypto volatility. Expectations on how turbulent the prices will be over the upcoming four weeks as indicated in options markets. It has increased to a two-week amount of 59 % within the past three days. One can expect the Crypto to trade volatile within the upcoming days.

The increase in short-term volatility of price expectations creates fears. The results of the election might be contested, giving rise to a period of economic and political uncertainty.

While the implied volatility of one month has picked up, the metric of 6 months stays flat above 60%. It indicates that the market does not demand a prolonged period of uncertainty in the political environment. Thereby, within the world’s biggest economy. 

Final Words

Further, extreme sentiment is witnessed in conventional foreign exchange markets. This is where the volatility of the Chinese Yuan has doubled during the last week to the highest after 2011. Thereafter, the implied volatility for one-week gauges for the yen and the euro. They have additionally risen to the highest after April.