US Elections: And The Winner is... Bitcoin!
Three days after election day, the world doesn't know who the United States president will be in the next four years. Joe Biden is the candidate with the better possibilities; however, until all votes are counted, nobody can say it for sure.
Meanwhile, current US President Donald Trump is trying to rarefy the election environment as he claims that the election is being stolen and Democrats are cheating to win.
He offered no evidence about it, neither he answered any question from journalists. The market perceived that as the latest attempt of a desperate man trying to keep power.
So, the market is assuming that Biden has a more reliable path to the White House, and they like what they see. In the last four days, Wall Street has rallied over 7 percent until today, when major indexes are trading in profit taking ahead of the weekend.
However, one asset is shining more than the others. Bitcoin rose around 20 percent from November 3rd minimum at 13,287.70, to today's maximum at 15,968.98. In the process, the BTC/USD broke above the 14,000 resistance, smashed the 15,000 level, and traded at its highest level since January 2018.
Is it Time to Buy Bitcoin? Analysts Consider it And Say Yes.
The market is watching a Biden presidency as the most likely outcome of the US elections, and it means a more significant and faster stimulus package in the country. It would represent millions of fresh dollars in the streets, would be fuel Bitcoin and other cryptocurrencies to further highs.
In addition, the Senate is not falling into the anticipated blue wave, which is suitable for the market in terms of contained regulations. The market is now confident that the Democrats will be able to push all their agenda on more regulation and taxes to the variable income.
In that framework, investors are now betting on cryptocurrencies with Bitcoin as one of the sector's stars.
Currently, BTC/USD is trading 0.33 percent positive at 15,665.72, confirming another bullish day for the crypto asset. Earlier in the day, the crypto asset tested the 16,000 area against the US dollar.
A technical analyst for Fairlead Strategies, Katie Stockton said:
Bitcoin is above the psychological threshold of $15,000 today on strongly positive momentum, having cleared resistance from 2019.
Sustaining the fundamental point of view, Guy Hirsch, U.S. managing director at multi-asset brokerage eToro, sees a perfect storm that would lead crypto assets to fresh highs in the next months.
The macroeconomic situation in the US and elsewhere is far more uncertain, and concerns about COVID-19's resurgence sending the economy back into a tailspin are not entirely unfounded, all in all, it feels like a perfect storm for retail [bitcoin] adoption that's coming right at the beginning of an expected wave of institutional capital.
In that framework, Michael Van de Poppe, an analyst at CoinTelegraph, highlighted in a recent article that Bitcoin price is getting closer to its last big hurdle before the 20,000 dollars level.
Van de Poppe says:
The weekly chart of Bitcoin is showing the final hurdle before the new all-time high can be reached, as it's facing the resistance zone between $15,800 and 16,800, the probability of a breakthrough in one go is not high, given that the price of Bitcoin has already surged by more than 50% in recent weeks.
People Are Becoming Crazy For Bitcoin, Again
According to the Fear & Greed index published by Alternative.me, the multifactorial crypto market sentiment analysts are now showing extreme greed values at 90, its highest levels since June 2019.
However, web data search data shows that widespread interest for Bitcoin remains at normal levels, which could be an indicator that Bitcoin is being purchased by the very same people in the market or for institutional firms that were waiting for a favorable outcome in the US election to make a decision.
In any case, investors should proceed with caution and weigh their options carefully before going to the market.
Mauricio is a newer member of the team and a very welcome addition. He is a financial journalist and trader with over ten years of experience in stocks, Forex, commodities, and cryptocurrencies. This experience means he has an excellent understanding of the markets and current events.