The results of the U.S. presidential election will be decisive for the future of Bitcoin (BTC). Preliminary data shared by Messari’s CEO, Ryan Selkis, indicates that the election will be close.
Now, Bitcoin opened the U.S. election day with a 1.85 percent jump, bringing its price back to $13,700. The leading crypto currency will go through a day or so, loaded with tension due to the election. And, experts believe that it would not be strange to see a new annual high.
The specialists point to the resistance of 13,800 dollars for the time being. In case it is exceeded, BTC has serious possibilities to test the new level. Although the electoral uncertainty will probably generate bounces depending on some unusual event.
As for the future of the White House, the consequences on the market will not be seen quickly (nor will the results of the election). Multiple ecosystem references have suggested that a defeat of President Trump would drive the price of BTC to higher levels. Due to the increased risk in the financial system.
Biden’s victory could prompt investors to rush their funds into emerging markets. Taking advantage of the last weeks before an administration that could be characterized by its restrictions and taxes.
Crypto market does not want to worry about the elections
What do the BTC presidential candidates and the crypto-currencies think?
Trump and Biden’s views on the market’s leading crypto currency are in significant contrast. For the U.S. president, Bitcoin is not money. Furthermore, it would be an unregulated asset that is based on „the air.
„I’m not a fan of Bitcoin and other crypto currencies, which are not money, and whose value is highly volatile and based on air. Unregulated cryptoactives can facilitate illegal behavior, including drug trafficking and other illegal activities,“ Trump posted on Twitter on July 11, 2019.
On the other side of the coin is the position Biden has shown, not just as a presidential candidate. But also as the vice president in office during Barack Obama’s two presidential terms between 2009 and 2017.
Unlike Trump, Biden has not directly questioned Bitcoin. In fact, in July of this year, and after the massive Twitter hacking that promoted a scam to steal BTC, the presidential candidate confessed that he doesn’t own any Bitcoin. Through Twitter he indicated the following:
„I don’t have Bitcoin and I will never ask you to send me one. But if you want to contribute to help Donald Trump become a one-term president, you can do it here,“ Biden wrote on the social network without criticizing the cryptomoney or questioning other projects in development.
Bitcoin in the short term
Now, the determining factor for Bitcoin of the election result would apparently be the approval of a stimulus package. After the fall of the crypto market in March, the approval of measures to combat the crisis caused by the coronavirus pandemic was important for the subsequent performance of Bitcoin.
In the short term, BTC absorbed a large portion of the stimulus approved at that time. At least in terms of adoption, BTC has established itself as a safe haven for many companies seeking refuge from the Federal Reserve’s inflationary measures.
According to senior commodity strategist for Bloomberg Intelligence, Mike McGlone, adoption is one of the key factors for Bitcoin. As adoption has increased, cryptomoney has managed to decouple itself from the traditional market and reduce its volatility by acting as a digital version of gold.
In fact, the creator of the Stock to Flow model for Bitcoin, PlanB, has responded positively to the news of a possible approval of a new stimulus package. Something that seems to be imminent with any of the current presidential candidates.