Bitcoin has survived two US presidential elections but this time it will be different
BTC has seen the US President being elected twice in its lifetime. However, in 2012 and 2016, the digital asset was still too young to feel any major impact.
American elections and Bitcoin
Presidential elections attract attention not only in America itself, but also around the world. As the US dollar continues to be the world’s reserve currency, the election results could potentially affect traditional global markets.
According to Forbes, throughout history, the US presidential election has had a direct impact on stock markets. The stock exchange shows better results when electing the current President, compared to the new administration.
The current head of the White house, Donald Trump, was not a fan of Bitcoin and cryptocurrencies, and in July 2019, he posted a tweet:
“I am not a fan of Bitcoin and other cryptocurrencies that are not money, the value of which is very unstable and based on empty air. Unregulated crypto assets can contribute to illegal behavior, including drug trafficking and other illegal activities …”
It later emerged that Trump also criticized Treasury Secretary Steve Mnuchin’s approach to trade negotiations with China, and told Mnuchin to “pursue Bitcoin” as a fraud tool.
Experts’ opinion on the consequences of the election race
Many experts and analysts have come to the conclusion that the BTC has become too self-sufficient an asset, and having got rid of the stock markets, it is not afraid of political influences.
Max Keiser: Bitcoin is correlated only with itself
Well – known TV host Max Keizer believes that the BTC is bigger than elections, and that it is an asset that “has no real correlation with anything-stocks, bonds, currencies, gold, commodities or property. And even more so with political parties or political results in the United States, or anywhere in the world.” He explained:
“To be clear, I don’t mean that BTC is backed by energy. I say that it is backed by a code that is irrepressibly programmed to consume all available energy on Earth and beyond to create an absolute shortage of money to raise humanity to a purer spiritual state of existence …”
Keyser came to the conclusion that regardless of who will be the next President of the United States, Bitcoin will continue to be the main asset for the monetary Deposit.
JPMorgan expects bull market growth after election
According to JPMorgan, the stock market is expected to resume a full-fledged bull rally after the election. The company told investors that there remains a 50% growth potential in the long term.
Strategist Nikolaos Panigirtsoglou said that even though the us market recently experienced its worst week since March, macro investment positioning still looks optimistic for stock investors in the long term.
Crypto Analytics company Glassnode noted that as bitcoin continues to gain momentum, it ended the week trading 5 percent higher. Glassnode explained:
“In the 44th week, BTC continued to gain momentum, ending the week with an increase of more than 5%. But despite these gains, falling on-chain fundamentals may prevent Bitcoin from breaking away from traditional markets.”
Bitcoin has experienced a 2.3% drop over the past 24 hours and, while other large-cap altcoins have suffered heavy losses. It is currently trading at $13,516. The market is expected to move more strongly in the next 24 hours, especially after the presidential election results are announced.