Election Day is upon us, and we have outlined what has led up to this day and what could result in the crypto world.
Bitcoins’ price soared to $70,000 on Tuesday morning before falling below it. BTC stood at roughly $70,170 just after 2 pm ET — up 3.5% from 24 hours prior.
Bitfinex’s analysts wrote in an e-mail that BTC historically has responded positively during periods of political transition, especially when fiscal or monetary policies were uncertain.
“The demand for safe-haven assets amidst rising US debt and deficits could drive bitcoin’s appeal as election outcomes unfold,” They wrote.
In a report published on Tuesday, BitOoda’s analysts stated that implied volatility is still high. This is expected to continue throughout the week, due to the uncertainty surrounding the election and Thursday’s Fed meeting.
“The options market is signaling potential price movements of around 8% following the election, compared to the typical 2% daily fluctuation,” The BitOoda analysts have added.
Seth Ginns, managing partner of CoinFund, told Blockworks that he will be monitoring the $75,000 level. “If we break decisively above it, we’d expect a quick and large follow-through,” He noted.
John Glover, CIO at Ledn after bitcoin’s recent rise to $73,000 (and subsequent fall), predicted that the cryptocurrency would again test the $74,000 mark before the election results were announced. A Republican victory could lead to a “quick jump” He added that the period would last for around 82,000 dollars, then a further period of “sideways-to-lower trading” In the range of $68,000 to $72,000
“A break and close below $63,000…could open up the potential for a correction down to $55,000 to 62,000, but that is not my preferred count,” Glover said.
Chris Perkins of CoinFund, Ginns’ colleague, stated that beyond price, crypto voters (estimated at 18% of the electorate), have already shaped political platforms and will affect a variety of election outcomes.
“As a result, we expect the next Congress to be a ‘Crypto Congress,'” He said. “This will result in a more favorable regulatory and policy climate for the asset class which will be favorable for greater adoption.”
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