The United States dollar is the most used currency in the world. Traders execute most of the trading activities in the global market using USD. As a result of the dominance of the USD, anything affecting the U.S. affects global trade, including cryptocurrencies.
The U.S. presidential election is one of the hottest topics in the world right now and it could affect the price of Bitcoin either positively or negatively. To predict what will transpire after today’s election, it is important to consider what happened in previous elections.
The U.S. election happens every four years, which coincides with Bitcoin’s halving. The last three elections have different effects on the price of bitcoin. In 2012, when Barack Obama secured a second victory, bitcoin was dull, but still, put up a hard fight and remained $10. A year after the election, BTC surged a remarkable 2,221% as it hit the $253 mark.
2016 was a more promising year for BTC as it surged by 3.8% immediately after the election result was released. One of the things that contributed to the surge in price is Donald Trump’s victory. The news took the world by surprise, and the stock market reacted with uncertainty and volatility globally. The uncertainty in the traditional market led many traders to seek a haven, and BTC was the next option.
The 2020 election may affect the price of bitcoin positively. If everything concerning the election, the results especially, go smoothly, bitcoin price may not show many actions. If the results are delayed, this may create uncertainty and volatility in the stock market, and traders may seek an alternative to the market, and BTC will be an option.
If more traders surge to the market, BTC prices will surely surge. At the time of writing, a bitcoin is worth $13,553. If some constraints affect the release of the election result prices may surge and hit the $13,700 mark, but if things go smoothly, prices may show little or no actions.