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The 2020 U.S. election set the country on track for its highest turnout in a century, with campaigns and candidates dominating the headlines.
Bitcoin’s price skyrocketed in the run-up to the election, adding a whopping 30% in October and riding on a string of positive news to reach unseen highs since early 2018.
Now, with Democratic challenger Joe Biden finding a solid lead in national polls on incumbent Donald Trump, bitcoin traders and investors are prepared as candidates head for the final day of the campaign, with global markets already at the limit.
US President Donald Trump is following his rival Joe Biden in the polls ahead of the election … [+]
AFP via Getty Images
Last week, the Dow Jones Industrial Average closed its worst week and month since the coronavirus incident in March as Republicans and Democrats prepared for the final round of the presidential race.
Bitcoin, meanwhile, has broken its long-standing bond to equity markets, adding 5% over the past seven days and fueling a wave of bullish sentiment among bitcoin investors that has not been felt since the historic bull run. bitcoin of 2017 – and it seems adamant no matter what this week’s outcome is.
“A Trump win will likely be welcomed by equity market players and bitcoin will continue to grow alongside other assets,” Anatoliy Knyazev, executive director of Exante brokerage, said via email. “However, a Biden win, which could lead to a fall in the stock market, could also work in bitcoin’s favor based on the expectation of dollar depreciation.”
Bitcoin investors are advocating cryptocurrency as a so-called emerging safe haven, with the price of bitcoin potentially rising alongside those of gold in times of greater uncertainty and risk.
“Markets hate uncertainty, so in the event of a disputed outcome, safe-haven assets will get a boost, particularly non-sovereign classes like gold and bitcoin,” Nigel Green, chief executive of deVere Group, said in an email.
In the event of a contested election, stocks could slide up to 20%, Bank of America economists warned last week.
“[Investors] I just want to know there’s a winner, “Jeff Dorman, chief investment officer at cryptocurrency hedge fund Arca, told Business Insider in an interview. Dorman thinks a Biden win would imply a level of government spending without it. that would be better for bitcoin and gold than another four years of Trump.
“I would say the Democrats are better at inflation hedges, but as long as there is a clear winner at some point, it will all go higher,” he added.
The price of bitcoin has soared over the past week, reaching $ 14,000 per bitcoin for the first time … [+]
Coinbase
Other more radical elements of the bitcoin and cryptocurrency community also think a Biden win will mean bitcoin could jump higher this week.
Contrarian Max Keizer, a Wall Street veteran, long-term bitcoin advocate and host of RT’s The Keizer Report, predicted that the bitcoin price will “rocket higher” on a Biden win, fueling unfounded fears that a Biden administration confiscates “everything”.
However, Keizer is also positive about the price of bitcoin in the event of a surprise Trump poll upset.
“With Trump, the US has the option of a more orderly transition to bitcoin so that the price increases more slowly,” Keizer said in an interview with Bitcoin and cryptocurrency news agency Cointelegraph.
Regardless of who takes the White House this week, the bitcoin and cryptocurrency community is convinced they’ve already backed the real winner.
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