Various media announced on November 7th that after 4 days of rigorous vote counting in key states, Joe Biden had managed to get enough votes Become the 46th President of the United States.
As the excitement subsides for an incredibly close choice Analysts will take a closer look at how a Biden presidency can affect traditional markets and the price of Bitcoin. Three key factors to consider are the possible ones Approval for a new round of economic stimulus, strengthening of the US dollar and the possibility of a recovery in the stock market.
According to Coinmarketcap, Bitcoin’s market cap is currently $ 276,141,230,669.
Economic stimuli could drive Bitcoin higher
Before the election, US President Donald Trump said he intended to postpone discussions about the incentive until after the election. Consequently, Democrats and Republicans fought for consensus on a deal.
Biden’s election sheds light on the prospect of an economic stimulus package by the end of the year. Democrats in US Congress proposed a $ 2.2 trillion stimulus plan in October, but the Senate did not support it..
The second round of the economy could have a positive effect on Bitcoin as it eases the financial situation in the US significantly. This would also boost the US economy and in return would whet investors’ appetites for risky assets.
The perception of Bitcoin has gone from being a risky asset to being a safe one as well as an inflation game over the past few months. Even so, I still am There are several cases where the price of Bitcoin moves in parallel with the exchange, in order to Without an appetite for risky assets, the price of Bitcoin can continue to rise.
Rise in the US dollar
If the Biden government approves a stimulus package, the US dollar will rise. In the eurozone, for example, the euro jumped after a major economic stimulus proposal was passed.
The US dollar has lagged behind the reserve currencies since March. As a result helped gold, bitcoin, and other alternative stores of value rebound as they appreciated against the dollar.
So, There is a possibility that a second economic cycle and improved investor confidence will initially have a positive effect on the Bitcoin price. It’s also important to note that a strengthening dollar could put additional selling pressure on Bitcoin and gold over time.
Equity markets may rebound now that the choice is “clear”.
Analysts too Expect the US stock market to recover after confirmation of the election result.
Although Many analysts believe that Biden’s financial and environmental policies could ultimately lead to a stock market crashthere is a high probability that stocks will recover in the short term.
The stock market fell sharply in August and September as analysts warned of the possibility of a controversial election. Speculation about the outcome of the election is unlikely to have led to the sale of risk assets.
Rather, the fear that the elections would drag on without a clear winner made the markets nervous.
After the 2020 campaign is over, there will be less uncertainty in the markets This could allow the stocks to rally along with other risky assets.
Jake Chervinsky, General Counsel of Compound Finance, said this about regulation Biden has not expressed a public stance on cryptocurrency. Wrote What:
“President-elect Biden has not said anything publicly about his views on cryptocurrency. Right now it really isn’t big enough to warrant his attention. The next four years of US cryptocurrency policy. It depends on who you appoint for key positions – we will know more when the transition begins. “
While the media has announced that Joe Biden is the 2020 election winner, President Trump has yet to give in and Trump’s legal team is expected to deny the results and attempt to force a recount in any disputed state.
If so, fear and volatility could re-enter the markets quickly, leading to a decline in stock and crypto prices.
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