Fear, uncertainty and doubt are the worst enemies of cryptocurrencies investors. What is worst, there are months of uncertainty ahead of us, which can change the course of history. It's all about the US elections...
Crisis and Bitcoin
Our world was surprised by a pandemic. It destroyed the economy, disrupted supply chains and led to the biggest crisis in 90 years.
As a result, gold gained on the charts. Theoretically the same should happen with Bitcoin. After all, the bitcoin's supply is also limited. The only difference is that gold is a metal, in value of which people has trusted for thousands of years, while Bitcoin has existed only for a decade.
Despite the latter, the price of a cryptocurrency increases. Along with it the leading altcoins also gain. But is this a prelude to the new bubble? Or will other events soon make us go back to falls?
Elections in the USA
In the US Presidential elections will happen in autumn 2020. Although the United States is no longer the same superpower as it was decades ago, whoever governs it still has a tremendous impact on the fate of the world. Uncertainty about who will become president of the USA can therefore hit the Bitcoin price.
If Trump wins the election, we can count on the continuation of the course. The Fed may even introduce negative interest rates and we are likely to see further dollar printing and a new phase of the trade war with China. Surprisingly, the current president, despite his seemingly impulsive character, pursues a rather peaceful international policy (apart from his shouting and crazy posting on tweeter).
If Joe Biden wins the election... Well, we don't really know what to expect.
Extreme volatility on traditional stock or oil markets can also affect the crypto space. So it is possible that we will wait for the big price jumps until the results of the US elections are announced.
Looking at how the previous election in the USA influenced Bitcoin's price, we can see that it reached a breakthrough and a big boom. However, before the election, the cryptocurrency was below the line of resistance...