The ongoing uncertainty surrounding the result of the US presidential election could provide a “meaningful price boost” for Bitcoin, according to chief executive and founder of independent financial advisory organisation deVere Group Nigel Green.
With many key states still counting votes, the results of the 2020 presidential election are expected to be far closer than polls initially indicated, with a clear winner yet to emerge.
While nail-biting for the millions watching closely from both the US and around the globe, for Bitcoin this uncertainty may have a positive impact.
“We still don’t know who has won the keys to the White House and we probably won’t for some days to come,” explained Green. “What we do know is that delays, legal challenges and a potentially explosive constitutional crisis in the world’s largest economy is likely to give Bitcoin a meaningful price boost.”
Bitcoin has been on a bull run this year, gaining 50% in six months. He predicted that the price of Bitcoin could surge at the end of 2020.
With the potential for political upheaval to impact the US economy, combined with the ongoing uncertainty caused by the Covid-19 pandemic, investors may opt for cryptocurrencies, which are not tied to a particular currency, in order to avoid unstable financial markets.
“Financial markets loathe uncertainty and are being shaken by political upheaval, a weak economy and social unrest in the US,” said Green. “As a result, investors will pile into safe-haven assets, in particular those not tied to any specific country, such as Bitcoin and gold, as a shield against the turbulence.”
He also explained that potential policy changes brought in by either Joe Biden or Donald Trump may affect Bitcoin.
“Other key drivers of a bullish Bitcoin market are that it is a legitimate hedge against longer-term inflation concerns which have come to the fore due to stimulus packages – more of which are promised by both parties. These emergency measures, like the massive money-printing agenda, reduce the value of traditional currencies like the dollar.”
“I’m in no doubt that with the fallout of global events, including the US presidential election, the trajectory of Bitcoin for the rest of 2020 is upward.”