As a Bitcoin trader, it is important to note that the two biggest market drivers for cryptocurrencies are “Fear and Greed”. And right now, the global pandemic, economic stagnation, and the uncertainty of the coming U.S election are inducing so much fear and risk aversion into the market.
This fear in turn is affecting how investors and big institution are structuring their portfolio and what they are choosing to invest in for the short term.
Will The U.S Election Eventually Favor Bitcoin?
Well. that depends totally on who wins the election and the kinds of policies they put in place especially when it comes to mass adoption of cryptocurrency.
If Trump wins the election, we can count on the administration to continue cutting interest rates, printing more dollars, and launching a new phase of the trade war with China.
These policies all favor the continued growth and mass adoption of Bitcoin and might see more investors getting interested in having an exposure to the Bitcoin market.
However, if Joe Biden wins the coming election… Well, we don’t really know what to expect yet.
But until the results of the U.S elections are finally announced, we can expect to see massive volatility on both the traditional stock, oil markets, and the crypto space.
What Is Bitcoin Doing Right Now?
The Bitcoin price has been selling off massively for a while now, crashing more than 21% in just a few weeks. However, the bulls are beginning to step back in, pushing the price higher.
But for this bullish momentum to be sustained, the Bitcoin price would have to break through the $11,243 key resistance region.
This region as served as both support and resistance in the past and might come into play in the coming days. A break above could see the Bitcoin price surging as high as $12,000 in the coming days.
However, a price failure in this region could see the sell-off intensify as more Bitcoin sellers might begin stepping into the market.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.