Wall Street veteran and renowned bitcoin proponent Max Keiser recently shared his insights on the impacts of the upcoming United States presidential elections on bitcoin’s price. The bitcoin price is currently fluttering around the $13,000 price level after pulling back from its highest price in three years.
Bitcoin can detach itself from traditional markets and the effects of geopolitical affairs due to its decentralized nature, but it is not yet there. The cryptocurrency market is very much under the influence of world politics, particularly the government and regulations.
The next major event in the global political agenda is the imminent U.S. presidential elections. The current POTUS, Donald J. Trump, will contest a second term in office against Democrat Joe Biden. The effects of the outcome on the bitcoin price are obscure but hypothesized.
Trump openly expressed his dislike for bitcoin
Intriguingly, the fact that President Donald Trump publicly expressed his disapproval of bitcoin through Twitter, Keiser believes that if the results favor Biden, BTC price will spike. In an interview with popular crypto media outlet Cointelegraph, Keiser explained:
“A Biden win means a win for corruption and the Deep State, so I would expect Bitcoin’s price to bolt higher as people panic-buy unconfiscatable Bitcoin before Biden’s socialist, jackbooted thugs start confiscating everything in a replay of 1938 Kristallnacht. With Trump, The U.S. has a chance at a more orderly transition to Bitcoin so the price would move up more slowly.”
In the past, geopolitical events have significantly impacted bitcoin’s price, both positively and negatively. Unfortunate global happenings have also had their contribution to the direction of the bitcoin price action.
Factors influencing the bitcoin price
For instance, earlier this year, when tensions rose between the United States and Iran, bitcoin began appreciating in light of the fears of a world war III. Before the increased hostility, bitcoin was trading near $8,000, and after a few attacks and hostility between the two nations, king crypto surged towards $11,000. However, the price declined later after President Donald Trump stated the United States was not going into war.
Furthermore, during the coronavirus’s peak in March, after the World Health Organisation declared it a global pandemic, bitcoin declined sharply to reach just under $4,000. However, the world’s leading cryptocurrency has since recovered from the wreckage to hit its highest ever price for the last three years. However, it has since pulled back from the high of $13,850 to trade just above the $13,000 price level.
Over the past decade, the bitcoin price action has trended in cycles. Among the most popular trends, among others, is the block rewards halving event every four years. The bitcoin network automatically slashes the number of mined bitcoin by half, delaying the supply over time. After every block rewards halving event, the bitcoin price spikes massively, as seen back in 2017, when it hit a record $20,000 after the halving of 2016.
If a similar pattern occurs this year, bitcoin price will likely surpass $20,000 during the first quarter of 2021. The network underwent a block halving event in March this year. To take advantage of such price fluctuations, start trading bitcoin today through the Bitcoin Up trading app. The platform is reliable and powered by artificial intelligence to guarantee high returns on investment.