Bitcoin Is At Its Highest Point This Year
The jump occurs during the U.S. presidential election, which is still heavily underway. Lots of additional counting is taking place in key battleground states, while some areas – such as Arizona – despite being called earlier in the race, are now again up for grabs as gaps tighten.
During all this time, both cryptocurrencies and the stock market have incurred serious rallies. It goes to show you that all you need is a little craziness in mainstream society to get financials up and going. The stock market has performed a full rebound over the last 48 hours, while assets like Ethereum, XRP, Litecoin and Chainlink have all shot up anywhere between one and five percent alongside bitcoin.
Many analysts and industry experts are now weighing in, claiming that bitcoin is being viewed as a solid tool to battle what is likely to be inflation and an economic downturn of sorts once the race is declared officially over. John Kramer – trader at market-maker GSR – explained in a recent interview:
Bitcoin has recovered from its post-election drop, crossing the $14,000 level once more… We may not know what a post-election stimulus may look like, but investors continue to believe that the U.S. Federal Reserve will keep printing money at a pace that favors bitcoin’s finite supply.
When one looks at bitcoin’s price patterns over the past eight months, it can be said that the currency has done the most growth this year than ever except for 2017. Three years ago, bitcoin jumped from just over $1,000 to about $20,000 during the Christmas season, meaning the world’s number one cryptocurrency by market cap spiked roughly $19,000 in less than a year.
However, in 2020, bitcoin initially fell below $4,000 during March when the coronavirus first began battering against the world’s financial markets. The fact that it is now just under $15,000 suggests that the currency has come extremely far, gaining as much as $11,000 in less time than it took to reach $20K.
A Little Craziness Leads to More Money
Paolo Ardoino – chief technology officer at cryptocurrency trading platform Bitfinex – mentioned:
Bitcoin has proven its extreme resilience during complex geopolitical events, and this has come to the fore during the tumultuous U.S. election. Regardless of the result of the election, it could be said that we are witnessing a growing recognition of bitcoin’s unique qualities as we adjust to just the sort of challenging times that the world’s biggest cryptocurrency was invented for.
Granted bitcoin can retain its current momentum, there is no reason as to why the currency cannot reach the $15,000 mark within the next few days.