With all eyes on the US election results, the ongoing ballot counting, and Joe Biden closing in on the US Presidency, the crypto experts are busy predicting how Bitcoin will respond to the outcome. Bitcoin has reached its highest price mark since January 2018, inching the $16000, a 12% hike in the last 24 hours (during the time of composing this article). According to market analysts, the cryptocurrency will keep up with its rally irrespective of the US Presidential Election.
There is no denying that Bitcoin has had a phenomenal year, so far. Its price has soared in the last few months. From over $10000 in February, it lost half its value in the market crash of March, plunging lower than $5000. But it was fast to get right back up and ever since has enjoyed a steady climb in numbers. Nevertheless, there have been fluctuations along the way as well, which is quite normal for any cryptocurrency or asset for that matter. That being said, things are looking different than it was a few years back.
Industry Leaders Championing Bitcoin
Bitcoin has acquired the support of industry big names, something that was not beside it even until a year back. Maybe not all, but a significant number of hotshot market leaders have been progressively bullish on BTC. The shift in stance became quite clear sometime around last week when established organizations like Square Inc., JPMorgan Chase, and likewise voted for Bitcoin’s credibility as a viable digital asset that is worth investing in.
We are calling it a change in the stance, because in 2017, when Bitcoin was high on its bull market run, en route to touching the $20000 mark, as it briefly peaked at $19783 on December 2017, quite a number of established organizations didn’t spare a chance to criticize its reliability as an investment-worthy asset.
Compared to that, the attitude towards BTC has thawed a lot in recent months. There are multiple global organizations; at present are investing millions of dollars in cryptocurrencies, notably Bitcoin.
According, crypto experts and market analysts, this change in attitude has more to do with the shifting dynamics of the world economy, rather than who becomes the next President of the USA. So it safe to say that, who takes occupancy of the Oval Office, will have little or no impact on Bitcoin’s rise, however, a temporary fluctuation in prices can be expected after the declaration of results.
Also Read: Blockchain in US Presidential Election, What it Holds for the Future of Voting
Stimulation of the Economy
Global investors are waiting eagerly for the news of further government stimulus packages, to keep the economy running in the upcoming festive season, with Thanksgiving and Christmas around the corner. The radio silence in the stimulus front from the head of states of major economies is already impacting the market indexes. While that has had a wobbling effect on the S&P 500, the results have been comparatively fair for alternative assets and Bitcoin.
In this context, the market analysts have placed their view that, if the new President of the USA brings a good stimulus package, post-election, then that will have a great impact on BTC. While Trump has already announced a stimulus post-win, experts believe that the results will not differ much even if Biden takes office, which at the moment seems the most likely outcome of the elections. It will be a wise thing to do on Joe Biden’s part to stimulate the economy.
Evolution of Investments
Investing has significantly evolved in recent years especially in the wake of COVID-19. The Millennials and Gen Z people can now buy fractional shares by clicking on their smart devices. They can easily trade-in and out of stocks with as little as a dollar and no fees to contend with thanks to the rise of scores of mobile applications. The digital savviness of the younger generation comes in handy when propagating crypto investments. They find it easy and accessible which has led to the popularization of digital assets investment among the millennials and z-ers.
USD, Oil, and Gold
For more than seven decades, the USD has been considered a trusted store of value. It is the most popular and globally owned fiat and a recognized reserve currency of choice. However, 2020 hasn’t been that great for USD and its value and global reliability on the same has been dwindling for months now. While it is true, that USD is still the currency of choice for international trade settlements, the social and political unrest across America and the world, has taken a toll on the dollar. Investors are anxious about its future place amid the global power battle. It’s not just dollar, but the oil prices that have taken a staggering blow to die to the pandemic as well. Among other asset classes and commodities, gold is posing as a strong investment at the moment and can be a robust shield against inflation, just like Bitcoin, but then again both are scarce. Nevertheless, both look fine as investments.
The growth of BTC has been astounding to watch. In less than a decade, it went from being just an idea to an asset with a $200 billion market capitalization. According to market experts, given the present global economic scenario, the US presidential election will hardly have a far-reaching effect on Bitcoin and cryptocurrency as a whole, there might be an initial setback but very temporary. That said, the traders and investors can look forward to an exciting 2021.
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