Intraday returns in the Bitcoin spot market soared to more than 2 percent as Democrats led the way in Georgia’s second election.
Due to the late Asian trading session on Wednesday, the flagship cryptocurrency had risen to a new high of $ 35,868, according to Coinbase Crypto Exchange, up 7.54 percent from its intraday low of $ 33,352 around midnight UTC.
Bitcoin trades higher in an Ascending Channel pattern. Source: BTCUSD on TradingView.com
A downright bearish sentiment in the US dollar served as the main catalyst behind Bitcoin’s gains. The dollar extended the week’s decline further Wednesday by dropping 0.15 percent, prompting speculators in the cryptocurrency market to raise their bids. Bitcoin generally trades in the opposite direction to the US dollar in the medium term.
Elections in Georgia
Bitcoin Dollar sentiment originated from Senate elections in Georgia. Democrat Raphael Warnock defeated incumbent Republican Kelly Loeffler in a second round. Meanwhile, the second game remained unpredictable.
Democratic victories in both seats would split the United States Senate equally between them and the Republicans. Meanwhile, a delayed vote on the upcoming legislation would give Vice President-elect Kamala the right to cast a casting vote in the Senate.
Investors believe this would smooth the wave for Democrats to approve more tax packages, starting with a recent proposal to help Americans with a $ 2,000 stimulus check. Bitcoin traders treat federal and government spending as bearish for the dollar and bullish for their crypto holdings, citing scarcity.
I said this during election season. A Biden win would cause a melt-up #Bitcoin
‘Biden victory’ will lead to bitcoin rush ‘- Asia Times https://t.co/c8KEtJIwoj
– Max Keizer (@maxkeiser) January 6, 2021
The Bitcoin Bias ahead
Bitcoin’s uptrend got a boost from a flurry of fundamentals other than a possible blue sweep in Georgia.
Singapore-based investment fund Three Arrows Capital reported in its filing earlier this week that it increased its exposure to the Bitcoin market through Grayscale Bitcoin Trust. It now owns 38,888,888 GBTC shares valued at more than $ 1.1 billion.
Meanwhile, strategists at JPMorgan & Chase raised their Bitcoin price target for the future to at least $ 146,000, citing growth against the rival safe haven, gold.
Crypto visionary and whale @GoingParabolic rocking the @Gemini hoodie swag on Fox Business. Love the marquee with @jpmorgan predicting #Bitcoin could go to 146k. While I think that's conservative (at least 500k), still a nice number. To the moon! 🚀👍 pic.twitter.com/BqNPVT0bmE
— Tyler Winklevoss (@tyler) January 6, 2021
Skybridge Capital founder and renowned hedge fund manager Anthony Scaramucci also chose Bitcoin as a superior contender for the precious metal, stating that it is “easier to store, harder to steal and more portable.”
The statements came when Mr. Scaramucci launched a cryptocurrency-based investment fund for institutional investors.
Overall, the story favored Bitcoin’s bullish bias. But there were still a few caveats regarding the cryptocurrency’s “overbought” status. The weekly RSI is above 95 representing a bearish price correction or an extensive consolidation move.