Many different events are associated with the US presidential elections, including those in financial markets. Most experts believe that whatever the result, the cryptocurrency market will react positively. But there is also the opposite opinion.
The day before, the bitcoin rate broke up through the level of $14.1K, and later corrected. Some experts attribute this to conflicting predictions for the elections. Meanwhile, the main prophecies boil down to the following: if Trump wins, bitcoin will rise sharply. If Biden is elected as president, bitcoin will grow too, but slowly.
A level above $14K is considered important, as BTC has not been so expensive since June 2019. At the same time, analysts note that for the entire period since 2017, when bitcoin set its record of $20K, it has never stayed long at the price above $14K. It is noteworthy that this year bitcoin has already broken two important levels of $12K and $13K. Experts associate such dynamic growth of BTC with the recognition of cryptocurrency by institutional investors. Therefore, the scenario is quite likely that BTC will grow to $20K by the end of this year.
Right now, according to technical analysis, bitcoin is on a growth trajectory to $17K. But along the way, there are likely to be several sections when BTC corrects. That’s why now it’s not profitable to buy BTC.
The US presidential election affects the BTC rate through stock indices. Bitcoin is demonstrating its connection with stock market values this year. Trump and Biden have different visions for the development of the American economy. Therefore, the state of stock indices will also be different. But in the short-term, by the end of this week, the crypto market will be characterized by increased volatility. Experienced traders will be able to make good money on this, while beginners are highly likely to suffer losses. Volatility may continue any further because both candidates announced in advance that they would not admit the defeat. Experts suggest that Trump’s victory will strengthen the crypto market because Trump is more active in supporting the stock market.
If Biden wins, it is highly likely that stocks will drop. Following them, bitcoin is likely to fall. This was already the case in March, when, amidst the pandemic, the markets dropped. The analyst emphasizes that in March, bitcoin recovered very fast due to the fact that market players massively bought BTC at the lows. This scenario may be successful this time too. If BTC drops significantly after Biden’s victory, it will be the most appropriate time to buy it before the rally.