This is a promoted article from Safetrading.
One of the most important features of Bitcoin is the fact that it is free from third party control, including politicians. But the fact is that the price of Bitcoin versus fiat can fluctuate significantly due to political and legacy economic activity. Look no further than the US presidential election for evidence.
While major media outlets, including the Associated Press, have declared the 2020 US presidential election in favor of Joe Biden, lawsuits and disputes from Donald Trump’s camp have led to official results appearing at some distance. Meanwhile, according to Safe learning expectations, it is clear that the price of BTC will be affected.
“As the United States prepares for the 2020 presidential election results, a number of data points and traders expect some significant price swings in cryptocurrency,” Bitcoin.com. “Statistics from skew.com show Bitcoin implied volatility has risen to 59% over 30 days, while statistics from 3-6 months have increased more than 62%.”
To know more precisely what will happen to the BTC price, it might be worth considering how the previous presidential election turned out. In 2012, shortly after Bitcoin was first introduced and Barack Obama won a second term of office, the price of Bitcoin continued to CoinMarketCap. In 2016, when Donald Trump defied many common expectations to win the presidency, the price of BTC rose quickly by 3.8 percent, possibly based on concerns about how the mainstream economy would be affected.
But the fact is, Bitcoin’s price is notoriously volatile and difficult to predict. Since it is not linked to a general asset and only provides historical precedent for a few years, no one can know exactly how the last election will affect BTC.
Still, that degree of uncertainty can in itself be a reason for optimism.
“It’s worth reiterating that no matter who wins, there will be some degree of calamity,” City AM reported. “A Trump victory continues the pattern of unpredictability at home and abroad, leaving markets nervous and uncertain. A Biden victory would result in a long-term calm, but it is highly unlikely that Trump will calm down and chaos reign in the new year. Expect volatility in traditional markets and opportunities in digital assets. “