The past was very turbulent for the American public. The presidential election has begun and while both sides have declared victory, there is no clear winner at the time of writing.
Bitcoin has seen a strong reaction to election trends, which initially rebounded sharply to $ 14,000 in anticipation of Biden’s win and then fell back to $ 13,500 in anticipation of Trump’s victory. BTC’s volatility is pegged to the US dollar, and the US dollar’s reaction to today’s election results is just as serious.
Further uncertainty regarding the choice is likely to add further confusion to Bitcoin investors.
Once the dust settles, the data shows that regardless of who enters the White House in January, bitcoin will continue to rise.
Data Shows that Bitcoin and Stocks are Expected to Rise After the US Election
According to a research report by the crypto asset analyst “Light”, historical data shows that the risk behaviour of investors after the first three elections is the order of the day.
The graph of net inflows into stocks shows that after each election, the amount of money flowing into the stock market increases dramatically, regardless of who the candidate is.
If history rhymes, capital will flood the market after the elections. Although Bitcoin has acquired some traits of value over the years, it continues to be viewed as “risky” assets that it will benefit from.
This appears to be due to the uncertainty of the applicant’s financial policy.
Unless it is clear who will run the world’s largest economy, when investors know things will change in the form of a dime, they will not hesitate to invest in the market.
It’s worth noting that the data shows that Bitcoin has seen tremendous growth after the previous US presidential election. As a result of the outlet’s previous report, the Messari analysis found that Bitcoin rose 2500 percentage points after Trump was elected in 2016. Trump’s choice didn’t boost Bitcoin, but for some reason, each choice is closely related to the start of a strong BTC rally: