How will the presidential election affect Bitcoin?

Two crypto traders comment on the upcoming US election.

The American presidential election is approaching, which is why two crypto traders venture a glimpse of the implications this could have for Bitcoin

„If there is a clear winner and the transfer of power goes smoothly, then I do not expect any major impact on the price,“ as trader „BigCheds“ assesses against Cointelegraph. To this end, he adds: „If things get tight, however, then I predict an upswing for low-risk assets like gold and Bitcoin.“

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

Shortly before the November election, the crypto community is increasingly discussing political issues. The timing for the fight for the White House couldn’t be more explosive, in a year marked by a pandemic , economic recession and rising unemployment.

„The tension is very high right now, especially because of the choice,“ said WendyO

“The markets need money so that they can flourish, but that is missing at the moment, as the middle class prefers to save their money these days,” the trader continues.

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

„If, after the election, we can estimate a little more precisely when the economy can be fully operational again, there will certainly be price movement in Bitcoin again and I hope that this will be positive, but nonetheless we cannot ignore the current price development let your eyes „, as WendyO warns. She points out that Bitcoin is currently having problems cracking the next resistance.

However, the market-leading cryptocurrency recently climbed above the important US $ 11,000 mark , which gives reason for hope.