US Presidential Election Rocks Bitcoin Prices
The US election will now be decided and this will assuredly affect Bitcoin prices. Historically, Bitcoin has been affected by a great many international events. For example, when the Brexit referendum was going on, Bitcoin prices surged as people wanted to find a safe place to store their assets and found it in Bitcoin. Now, the signs are all there that Bitcoin will be experiencing some price changes in the future.
Bitcoin has actually been riding high recently. The cryptocurrency has managed to break the $700 barrier and it seemed to be on the way up. Currently, the Bitcoin value is hovering around the $700 level, which is a sign of some pre-election nerves.
Last week showed off how volatile the market could be. Prices managed to reach as high as $745 before it started to break downwards. This was mostly because there were rumors being whispered about China cracking down on Bitcoin capital outflows. This would be bad since a lot of Bitcoin’s demand comes from the Chinese market.
This caused a bit of a panic. Heavy selling then resulted in dropping prices to around $670. Of course, opportunistic buyers took advantage of this and started buying. This boosted prices back to above $700. As the election happens, people expect prices to be stable as everyone is waiting for the results of the election.
Whether Trump or Clinton wins can have a great effect on Bitcoin prices. Depending on who people support they may see a need to protect their assets by buying Bitcoin or moving them abroad. The economic outlook of a Trump or Clinton presidency is also a part of the formula as global markets want to see who will be controlling one of the world’s biggest economies: a skilled politician with years of experience or a person with several bankruptcies to their name.
However, a lot of people are pretty confident about Bitcoin’s position either way. Higher prices are projected, still fueled by the movement in the Chinese market. Some are already confident that Bitcoin will break the $1,000 mark before the year ends, though not all agree with that projection.
It is not all about the presidential elections, though. Other issues that are supposedly affecting the trend are the indeterminate Federal Reserve rate hikes and coming data on the labor market. These can affect global markets and push people to seek capital protection in Bitcoin and other investments.
Just like how people braced for the results of the UK’s Brexit vote, many investors are now waiting for the results of the election and other events that may affect Bitcoin. This week will see a change in the market for sure, though whether it will be positive or negative is still up in the air.