The US presidential election takes place on november 3rd, and polls give the edge to the democrat candidate Joe Biden.
As it's usually the case, the uncertainty of the result and the impending policies imposed by the winner, means more people tend to look for the so called "safe haven" assets, among which bitcoin has obtained a rightful place.
The sentiment is confirmed by Andrew Maguire, precious metals specialist at Kinesis:
Potential outcomes of the upcoming US elections are driving safe-haven demand. Uncertainty around factors such as candidates’ regulatory and tax policies could spark negative reactions from traditional market players, driving more investors towards gold and silver.
Elsewhere, market volatility has been exacerbated recently when President Trump tested positive for COVID-19. With the gold price rising following the black swan event, we expect gold to gain strength amid such uncertainty.
Bitcoin has shown signs of correlation with the stock market the last months, but it appears to be slowly decoupling, and many (including us at Crypto Jedi) believe it will finally decouple in time.
Neither Biden nor Trump have made a statement regarding cryptocurrencies, but as the market grows the presidential winner will undoubtedly have to deal with cryptos sooner than later.
Bitcoin price should move upwards among the uncertainty, even more considering the government is looking to approve a new stimulus package to reignite the economy after the pandemic.