Bitcoin Spirals Higher Fueled By US Election Uncertainty and Under-performing Stocks

News / 09.11.2020

Bitcoin (BTC) blazed past $15,000 over the past week and set new highs of $15,975, its highest level since January 2018. The world’s leading cryptocurrency’s uptick was fueled by a cocktail of increased uncertainty surrounding the US presidential election and a weakening dollar.

btc usd spiked

BTC Price Spirals Higher Amid US Election Uncertainty | Source TradingView 

Meanwhile, gold, stocks, and other traditional investment assets haven’t performed nearly as well as Bitcoin, establishing the digital coin as a maturing safe-haven asset and a hedge against uncertainty.

As of this article’s writing, the flagship cryptocurrency has corrected lower to trade at $15 233. Despite the drop from the weekly highs, BTCUSD remains bullish on a longer-term time frame.

The rally that took BTC higher over the past few weeks impressed Raoul Pal, CEO of Real Vision, who now expects the digital asset to hit a new all-time high by early next year. 

The Wall Street veteran added that key fundamentals favor bulls. He noted:

“The macro, flows, technology, demography, and societal strains have all converged to this moment in time, and the definite answer from markets is – #bitcoin.”

Bitcoin Bulls Are Fully Back

The world’s largest cryptocurrency remains on an upward path even as the turbulent US presidential election winds down, with Democratic nominee Joe Biden, projected to defeat President Trump.

This ongoing BTC rally convinced Mike Novogratz, formerly of Goldman Sachs, to argue that the cryptocurrency is now decisively in a bull market. 

Speaking to CNBC’s Squawk Box, the Wall Street veteran asserted that the world had crossed the Rubicon in Bitcoin’s adoption. He affirmed that Bitcoin would continue to establish itself as a hedge against fiscal irresponsibility and surge higher as the Federal Reserve and other central banks continue printing money.

Another reason why the BTC price is soaring is the increased institutional interest in the digital asset class. Over the past few weeks, giant corporations such as Microstrategy and Square Inc. have decided that Bitcoin is a must-have for their balance sheets.

Bill Noble, a chief technical analyst at Token Metrics, added to the sentiment that BTC would continue gaining ground as an alternative investment vehicle to traditional stocks. He believes that no other currency is as good as BTC to diversify cash holdings and act as a safe-haven asset.  

Number of BTC Addresses Rocket to ATH

Bitcoin has been sucking out all the oxygen out of the crypto market with its parabolic rally that has seen it post gains not seen since the 2017 Bull Run.

This impressive run has seemingly caught investors’ attention, resulting in a sharp rise in the number of unique addresses interacting with the BTC network.

According to analytics platform Santiment, the number of Bitcoin addresses interacting on the network reached a 33-month high of 1.17M just a few days ago. 

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.