How will the presidential election affect Bitcoin?

Two crypto traders comment on the upcoming US election.

As the US presidential election approaches, two crypto traders are taking a look at the implications for Bitcoin.

„If there is a clear winner and the transfer of power Crypto Crash goes smoothly, I don’t expect any major impact on the price“, as Trader „BigCheds“ told Cointelegraph. He adds: „However, if it is a close call, I predict an upturn for low-risk assets such as gold and Bitcoin“.

The presidential election is the final act of a wild 2020, which has produced many unpredictable factors. „This year was definitely different when we think of the Corona crisis and the economic crisis it triggered,“ trader „CryptoWendyO“ told Cointelegraph accordingly. And she continues: „In a situation like the Corona crisis, one would expect Bitcoin to go up because of the uncertainty in the financial markets, but that has not happened yet“.

The crypto-community is increasingly discussing political issues just before the election in November. The timing of the battle for the White House could not be more explosive in a year marked by a pandemic, economic recession and rising unemployment.

„Tension is very high at the moment, especially because of the election,“ said WendyO. „The markets need money to flourish, but that’s what is missing at the moment because the middle class prefers to save their money in these times,“ the trader continues.

In this context, the government’s aid packages also play a role, although the government has recently been unable to reach agreement on a new aid package. Both the stock market and the crypto market reacted with losses to the news that the negotiations will be postponed after the election.

„If we can estimate more accurately after the election when the economy can be fully operational again, there will certainly be some movement in Bitcoin’s share price and I hope that this will be positive, but nonetheless we must not lose sight of the current share price development,“ as WendyO warns. She points out that Bitcoin is currently having problems cracking the next resistance.

However, the market-leading crypto currency recently managed to climb above the important 11,000 US dollar mark, which gives reason for hope.