Digital currencies have changed the world in many different ways. The number of businesses that accept crypto-based payments is growing. On the other hand, the number of people that use them for trading purposes is improving as well. People have become aware of the benefits different digital currencies bring.
Yet, becoming a successful crypto trader is a challenging task. People need to go through a couple of stages before they reach their goals. Before everything, they need to get familiar with all the digital currencies that exist, their features, potential, etc. Despite that, they need to use every possible tool that will improve their performances. A good example of that is different software solutions that provide people with useful data, insights, and statistics. If that seems like a legit way to improve your trading skills, we recommend you click here.
Predicting certain things on your own can be challenging. For beginners, the tools we previously described are an excellent choice. Many different things can influence the price of Bitcoin. That especially counts when we talk about some important happenings in the world that influenced the entire world. One of them is the US elections without any doubt.
Analyzing the way how the US elections have influenced the price of Bitcoin requires in-depth analysis. We primarily need to go back to 2012 and 2016 and try to predict certain things in that way.
Presidential Elections in 2012
In 2012, the price of Bitcoin was around $11. In that period, many digital currencies of today didn’t even exist. Because of that, we will use the most popular ones to make a proper comparison.
After Barack Obama was elected for the second time, things have not changed a lot. However, things have changed only one year later. In 2012, the price of one BTC jumped to 253 dollars. However, we do not want to say the president Obama had something to do with that. The entire world was fascinated with the new payment method. Many investors targeted Bitcoin as an excellent investment option.
The only thing we can say is that the president never said a negative word for digital currencies. Obama was, more or less, neutral as well as other responsible financial authorities. No one probably believed the price of Bitcoin will be more than 40 thousand dollars 7 years later.
Presidential Elections in 2016
Many people will say that 2016 was the year when everything inside the US changed. Donald Trump brought different decisions that also influenced the price of digital currencies. We will use Bitcoin once again as an example.
Believe it or not, a couple of hours after the mainstream media confirmed the victory of Donald Trump, the price of one BTC jumped by 3.8%. More precisely, from $709, it reached $736.
There is a good reason why something like that happened. After Trump’s win, many investors were concerned about the stock market in the United States. That market started to look uncertain, and people were looking for a more secure place to invest. It seems that digital currencies were the option of many people.
Generally speaking, we can make one conclusion here. The happenings in the world do not directly influence the price of digital currencies. However, they do influence the decisions that people make. For instance, uncertainty in the stock market made the crypto market more attractive to people. They wanted to find safe assets that will help them control or improve their earnings.
So, What about Elections in 2020?
Cryptocurrencies were not a focus of social media in 2020. People in the USA could hear only news associated with elections and pandemic. We primarily need to say that the beginning of the pandemic negatively influenced the price of Bitcoin. People were unsure what will happen and how long everything will last. That is the reason why many people sold their digital currencies.
Over time, the pandemic also influenced the strength of the dollar. It is not a secret that elections are also one of the reasons why the dollar has become unstable. Since May 2020, the value of one dollar has slowly started to fall.
Currently, the value of a dollar is stable, but it is not high. Things after elections did not calm down. For a couple of months, Donald Trump was claiming that he was rigged. That situation, once again, makes the stock market unsafe for many people. In one moment, everyone expected things will turn bad in America. Fortunately for people, something like that didn’t happen. However, the good news for crypto supporters is that the value of digital currencies jumped as well.
People were, once again, trying to find the best investing alternative. When the stock market seemed unsafe, many of them decided to invest in digital currencies.
We will once again use Bitcoin as an example. It is not a secret the most popular digital currency is making progress since the beginning of this year. On December 31, 2020, the price of one BTC was almost 29 thousand dollars. While you are reading this article, the value of one BTC is 51660 dollars.
It would be unfair to say that US elections are the only reason why the price of BTC jumped. After the elections ended, digital currencies appeared in mainstream media once again. Despite that, many people realized the pandemic will mess up economies around the world. The stock market is not the only one that has become uncertain. Fortunately, the decentralized virtual currencies looked like an excellent investment option. It seems that more and more people are becoming aware of that. Together with value, the demand for digital currencies is growing as well. The insights we receive today confirm the same trend will probably continue.
US elections are a confirmation of one thing. Different events and happenings around the world do not directly influence the price of digital currencies. However, they do impact the decisions that people make. They make different markets more or less attractive for investing.
We still can’t claim that digital currencies will take over traditional ones. However, not being familiar with their features may be a big mistake. Without any doubt, they are our future.