Several market factors have influenced Bitcoin’s price up until now. After the announcement of a pandemic last March, the bitcoin dropped by 40%; on the other hand, it is still rising. As reported, tweets from President Trump have proved to be surprisingly noteworthy in Bitcoin price shifts. Bitcoin dropped when President Trump admitted he had coronavirus. And then, earlier this week, the President’s suggestion that he will push through a massive stimulus package if he won the election had pushed up Bitcoin’s value.
I a recent survey, 500 investors stated that the most significant impact on Bitcoin prices would be Trump’s re-election. The other 39% thought the 3rd November would be the crucial factor; meanwhile, the 32% will stock the market performance. Other concerns were raised by 16% and 13%, respectively, were the price of gold and the development of DeFi.
Bitcoin’s 2020 prospects are the US election and COVID-19.
As the virus’s economic impact affects the whole world, opinions have been divided on how Bitcoin is correlated with more traditional assets. Gold has traditionally been the safest asset in the financial crisis and is now having competition from crypto investors this year.
While the candidates’ exact regulatory and tax policies continue to be unclear, Trump and Biden have adopted relatively neutral stances on cryptocurrencies. The established financial institutions are increasingly gravitating away from Trump as the election race progresses. A hostile reaction is expected from the traditional markets and would further increase the demand for Bitcoin. On the other hand, in spring, Binance had flagged the possibility that a stock market crash may force the Bitcoin price to go lower, reminding the investors that it was not a ‘safe-haven asset.’