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US election expected to determine Bitcoin success, according to investor survey

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TL;DR

  • Bitcoin investors confess their greatest fears are around the US election
  • Survey participants also said eyes were also on stock market performance
  • Bitcoin has been regarded by some investors during the crisis as a ‘safe-haven asset’

Numerous market factors have influenced Bitcoin’s price over time. Following the announcement of a global pandemic in March, the cryptocurrency fell by 40% but has been steadily rising. As this provider reported, tweets from President Trump have proved surprisingly significant in Bitcoin price shifts. Bitcoin fell when President Trump admitted he had coronavirus. Then, earlier this week, the President’s suggestion that he would push through a huge stimulus package if he won the US election pushed up Bitcoin’s value.

In a cryptopotato survey, 500 investors said the greatest impact on Bitcoin prices would be Trump’s re-election. 39% thought the 3rd November election would be the key factor, while 32% would be looking to stock market performance. Other concerns raised by 16% and 13% of participants, respectively, were the price of gold and the development of DeFi.

The US election and covid-19: Bitcoin’s 2020 prospects

As the virus’s economic impact wreaks havoc worldwide, opinions have been divided on just how Bitcoin is correlated with more traditional assets. Gold, traditionally the safest asset in a financial crisis, has had competition from cryptocurrency investors this year.

While the candidates’ exact regulatory and tax policies remain unclear, both Trump and Biden have adopted relatively neutral stances on cryptocurrencies. Established financial institutions are increasingly gravitating away from Trump as the election race develops. It is expected a hostile reaction from traditional markets would further increase demand for Bitcoin. However, in Spring, Binance chief executive Changpeng Zhao flagged the possibility that a stock market crash would force the Bitcoin price lower, reminding investors it was not a ‘safe-haven asset.’

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Sophia Atkinson

An enthusiastic writer and analyst, Sophia worked in data and media consultancy before joining Cryptopolitan. She enjoys finding the crypto stories that matter and bringing them to readers. Outside of writing, Sophia plays saxophone in a Cuban big band.

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