Bitcoin’s Volatility Expected to Rise After the Presidential Elections
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One notable economic sector that will surely be affected is the crypto sector. According to experts, Bitcoin’s volatility is expected to rise as soon as America elects its new president. Data points and traders have pointed to the recent price fluctuations as proof, with statistics showing huge volatility jumps prior to the elections.
Bitcoin’s price is incredibly higher than where it was for the last Presidential elections. In 2016, a single Bitcoin went for $702, which is a far cry from the current price hovering around $14,000.
A Massive Jump
At the moment, the leading cryptocurrency economy is in the $390 billion range. This is a giant leap when compared to its position in 2016. Bitcoin’s price is climbing and getting pretty close to the 2017 records, and as soon as the new US president is elected, the volatility may go sky high.
According to recent data, major market fluctuations are expected as soon as the elections are finished. Charts show that Bitcoin’s volatility has jumped nearly 60% in the past month and over that for Bitcoin’s implied volatility over six months. Everything is pointing at higher volatility after the elections, just like it happened in 2016.
No matter the outcome of the elections, Bitcoin and royalties such as gold and silver will stay strong. On the bullish side, central banks will continue to flood the market with cash. With the coronavirus pandemic still not defeated, new stimulus packages are to be expected. On the bearish side of Bitcoin, new lockdowns can cause various problems for markets and drag the cryptocurrency down.
History Repeating Itself
The 2016 elections were crazy, with Trump winning in the last stretch after most media outlets made Hillary Clinton the new US president. The 2020 US Elections will be even crazier and will certainly cause a shift in the economy. This goes for both fiat and crypto economy, with the latter expecting big changes.
With civil unrest in the past months and economy on shaky legs, Bitcoin will continue to rise. Of course, no one expects banks to shift their stance on cryptos. No matter who wins the elections, monetary corruption will continue, and that could make a lot of people and businesses turn to Bitcoin.
The global economy is going through a slow recession. During the pandemic, the demand for services and goods was expectedly slowed down. Meanwhile, Bitcoin if flourishing in different markets. The Bitcoin online gambling explosion is one notable example, and many countries have turned toward the cryptocurrency (or digital payments) as a way to stop the pandemic recession.
It seems that we’re in for very surprising times for Bitcoin. If history repeats itself, there may be a massive jump soon, so keep an eye on the price and further developments.
