Bitcoin benefited from the global market sentiment as it acted as a hedge against the US dollar. The cryptocurrency’s bids surged as the greenback fell. And a confirmed victory for Joe Biden, the Democratic nominee who promised to expand government spending programs against the coronavirus pandemic, increased further prospects of a higher Bitcoin.
Meanwhile, the Senate contest in Georgia is also looking to head for a runoff. Experts note that the final result won’t arrive until early January. They also think that Republicans will retain the majority in the Senate House. It would mean delays for Mr. Biden in passing the spending bills that he promised in his election campaign.
For Bitcoin traders, it is now the matter of when not if. The rising number of coronavirus cases in the US has raised the possibility of a second relief package. No politician can ignore the American public as their states enter partial or full lockdowns like in the European countries. Ultimately, a package will arrive.
If Trump wins, less lockdowns, economy improves, #Bitcoin wins
If Biden wins, stimulus & increased government spending causes rising prices, #Bitcoin wins
If Jorgensen wins, smaller govt, more freedom, #Bitcoin wins
If Pierce wins we have a Bitcoiner President, #Bitcoin wins
— Bruce Fenton (@brucefenton) November 3, 2020
Meanwhile, those with a restless, short-term risk appetite would prefer selling their positions at the current higher levels. Against a lower buying demand in the absence of concrete interim fundamentals, the Bitcoin price can, therefore, descend to find a new support base.
BITCOIN OUTLOOK, EXPLAINED
Meanwhile, the Federal Reserve will keep interest rates near-zero, and the stimulus will remain at an impasse. That leaves Bitcoin traders with ample reasons to secure their short-term profits in cash.