How the US Presidential Election could affect Bitcoin?

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Kataryna Habeliia November 3, 2020

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How the US presidential election could affect Bitcoin?

Today, November 3, presidential elections will be held in the United States. Against the background of this event, fluctuations in the stock market are possible. Depending on the victory of Donald Trump or Joe Biden, various segments of the economy may receive support, which can affect the stock quotes of companies related to them. This, in turn, may affect the crypto market through bitcoin. In 2020, the asset showed a high correlation with stock indices.

The elections in the USA will undoubtedly leave an additional imprint on the financial markets, especially in the field of cryptocurrencies. Starting from Tuesday until the end of the week, a strong increase in volatility is possible in the markets.

Is the US presidential election a new incentive for Bitcoin?

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The bitcoin rate has shown a noticeable growth in the last month and, according to Bitxmi analysts, this is not the limit. A new impetus for the growth of BTC may be given by the US presidential elections

Last week, Bitcoin showed a negative correlation with the Dow Jones. While the stock markets around the world were declining, the bitcoin rate rose by 5% and even reached the levels of January 2018. One of the main fundamentals this week will be the final round of the US presidential election, with bitcoin winning either way:

“Trump’s victory should be well received by participants in financial markets, and the bitcoin rate will grow along with the rates of other assets. If Biden wins, we will see the stock market fall. However, Bitcoin is likely to show growth amid expectations of a depreciation of the dollar. ” — says the executive director of Exante Anatoly Knyazev

Many analysts call bitcoin a defensive asset to invest in during times of uncertainty in financial markets.

“Markets do not tolerate uncertainty and when such a situation develops, defensive assets grow noticeably, especially non-government assets such as gold and bitcoin,” said Nigel Green, CEO of deVere Group.

However, some analysts agree that Biden’s victory is more positive for Bitcoin. Max Keiser believes that if Biden wins, Bitcoin can reach new heights. If the United States chooses Trump as the next president, then Bitcoin will also continue to grow, but much more slowly.

What to do with BTC in case of a fall?

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In March 2020, the bitcoin price dropped to $ 3.8 thousand, falling by more than 50% in two days. This happened against the background of a decline in stock indices. After that, the rate of the cryptocurrency began to recover and by May completely won back the fall. From March to the current moment, the coin has risen in price by 260%.

Against the background of the presidential elections in the United States, a new drop in the price of bitcoin may occur. It may look like the March movement, only in a less tough version. If the decline is strong, you need to “definitely” buyback bitcoin.

If Bitcoin drops sharply following the election results, it is highly likely that the asset will be quickly redeemed. This situation is comparable to March — then the cryptocurrency recovered much faster than stock indices. This time, in addition to investment factors, the halving that happened in May will help the growth of the BTC value.

Bitcoin may drop in price up to $ 12 thousand. If this happens, our team of analysts advises taking this drop as a good moment to buy cryptocurrency on the BitXmi crypto exchange.

Read actual crypto news every day on news.bitxmi.com

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Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi’s role is to inform the cryptocurrency and blockchain community about what’s going on in this space. Please do your own due diligence before making any investment. Bitxmi News won’t be responsible for any loss of funds.

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