How the 2020 US presidential election will affect Bitcoin – investor opinions

CONTENT

  • American presidential election years coincide with Bitcoin halvings

  • Investors have developed a special attitude towards candidates

  • The history of 2012 and 2016 may repeat itself

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Cryptocurrency is a new financial instrument that has burst into the world of traditional money. Despite the fact that classic digital assets, unlike the usual fiat, do not directly depend on central banks and other regulators, they are influenced by many events. 

The US dollar, as one of the world’s most widespread traditional currencies, is an important competitor for a new financial instrument. The American market, in turn, is an equally important platform that provides access to millions of potential users. This is why it is so important for digital assets to consolidate their position in the United States.. 

In early November 2020, the next presidential elections will be held in America. The event traditionally has an impact on the crypto space, since it depends on the head of state how the market for new financial instruments will develop in the future. The editors of BeInCrypto decided to find out what predictions are given by investors of digital assets on the eve of the election of a new American leader.

Bitcoin vs Trump – How Will the Upcoming US Elections Affect the Crypto Market? | AIBC Summit

Opinions of crypto industry participants on the impact of the 2020 US presidential election on the market 

The Capriole Fund manager Charles Edwards drew attention to how the bitcoin rate behaves ahead of the event. Let us remind you that elections are held once every four years. Halving occurs with a similar frequency in the Bitcoin network. Bitcoin halving reduces the number of new coins created and earned by miners in half. This happens about every four years and … More.

How Will The 2020 US Presidential Election Affect Bitcoin & Cryptocurrency Markets? | w/ EllioTrades

Charles Edwards noted that the story points to the cryptocurrency’s upside potential ahead of the election. After the determination of the head of the United States in 2012 and 2016, the course of the digital asset continued its positive movement. This reaction, according to the expert, can be explained by a combination of the clarity of choice that has come (society understood what development scenario awaits the cryptoindustry) and the positive influence of halving on the behavior of BTC. In 2020, according to the manager of The Capriole Fund, cryptocurrency may repeat the scenario.

The 3 months prior to US elections has been "rocky" for Bitcoin in the past.

But the halving + post election "clarity" has been very solid.

Note: sample size ~ 2.5 pic.twitter.com/uzlyuVR1s6

– Charles Edwards (@caprioleio) September 22, 2020

Analyst Lark Davis, in turn, drew attention to the high level of correlation of bitcoin with the S index&P500, which, according to history, goes into decline amid the US presidential election. In 2020, he believes, the situation may repeat itself. As a result, the BTC rate runs the risk of falling behind S&P500.

Historically the S&P 500 has done poorly in September, and quite badly in October of election years. # Bitcoin’s high correlation to the equity markets could mean that we are in for some big bumps over the next 6 weeks. GOOD NEWS is that November is usually a strong month. pic.twitter.com/KYUwuVeYWj

– Lark Davis (@TheCryptoLark) September 22, 2020

Another analyst, Holger Zschaepitz, noted that the traditional market is already feeling “pre-election” pressure. At the same time, bitcoin and gold, according to his observations, on the contrary, show stability. The discrepancy can be explained by the theory that BTC is correlated with S&P500 only at certain points.

Global markets start on the back foot as risks rising for equities driven by US election risk, potential 2nd waves, stretched valuations and threats of a double dip recession). Dollar lower w / Euro at $ 1.1866. Bonds steady w / US 10y at 0.69%. Gold at $ 1952. Bitcoin almost 11k. pic.twitter.com/BVZOxHm2vu

– Holger Zschaepitz (@Schuldensuehner) September 21, 2020

The chief strategist of the Kraken cryptocurrency exchange Pierre Rochard chose not to predict the behavior of the bitcoin rate against the backdrop of the US presidential election. Instead, he decided to play a trick on candidates for the post of head of America..

“I will vote for Biden if he promises to give every American 1 BTC. This will stimulate economic growth, “he wrote on his Twitter.. 

I will vote for Joe Biden if he promises to send everyone 1 bitcoin. This would stimulate the economy!

– PierreRochard.com (@pierre_rochard) August 20, 2020

It is noteworthy that earlier the CEO of Galaxy Digital, billionaire Mike Novogratz, during his interview for CNN, warned the participants against choosing Joe Biden. The expert noted that the candidate intends to increase the capital gains tax. The changes, he believes, will negatively affect in traditional markets and representatives of the crypto space..

How the 2020 US presidential election will affect Bitcoin - investor opinions

Kraken Business Development Director Dan Held also commented on the upcoming election. In his opinion, whatever their outcome, it will not affect BTC..

“Vote for Bitcoin,” the expert published such a call in his microblog.

Vote Biden.
Vote trump.

Everything stays the same.

——

Vote Bitcoin.

Everything changes.

– Dan Held (@danheld) August 12, 2020

findings

Unfortunately, it is unrealistic to say exactly how the US elections will affect bitcoin and the entire digital asset market. At the same time, taking into account the opinions of the members of the crypto community, it is possible to predict the most likely outcome.

We will remind, recently BeInCrypto understood how sometimes the decisions of the governments of the countries can, unexpectedly for the regulators, positively influence the situation in the cryptoindustry..

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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How the 2020 US presidential election will affect Bitcoin - investor opinions
How the 2020 US presidential election will affect Bitcoin - investor opinions
How the 2020 US presidential election will affect Bitcoin - investor opinions

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